File(s) under embargo

Reason: Publisher requirement

466

days

4

hours

until file(s) become available

The impact of governmental intervention on the association between initial public offering and future stock issuance

journal contribution
posted on 03.08.2020, 08:47 by Dimitrios Gounopoulos, Yilmaz Guney, Jingsi Leng, Victoria Patsika
We examine the effect of initial public offering (IPO) characteristics on seasoned equity offering (SEO) decisions in relation to governmental intervention in China. Our results confirm the process of underpriced IPOs in promoting earlier and larger SEOs in the Chinese context. The study examines three channels through which the Chinese government intervenes in equity issuance activities, namely state ownership, politically connected executives and economic development areas. We find that the connection between IPOs and SEOs becomes less apparent in government‐intervened firms. We attribute these results to the conflict between the state and minority shareholders, which leads to high uncertainty and risk in government‐intervened firms.

History

School

  • Business and Economics

Department

  • Business

Published in

British Journal of Management

Volume

31

Issue

4

Pages

665 - 687

Publisher

John Wiley & Sons Ltd

Version

AM (Accepted Manuscript)

Rights holder

© British Academy of Management

Publisher statement

This is the peer reviewed version of the following article: GOUNOPOULOS, D. ... et al, 2020. The impact of governmental intervention on the association between initial public offering and future stock issuance. British Journal of Management, 31 (4), pp.665-687, which has been published in final form at https://doi.org/10.1111/1467-8551.12400. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

Acceptance date

13/01/2020

Publication date

2020-03-09

Copyright date

2020

ISSN

1045-3172

eISSN

1467-8551

Language

en

Depositor

Dr Jingsi Leng Leng. Deposit date: 31 July 2020

Exports