IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v57y2021i9p2583-2603.html
   My bibliography  Save this article

The Unintended Consequences of Regulations in Emerging Financial Markets: Evidence from the Chinese IPO Market

Author

Listed:
  • Yan Zhang
  • François Derrien
  • Xiaohui Wu
  • Qi Zeng

Abstract

This paper explores the impact of regulations imposed by Chinese authorities on the development of the Chinese IPO market. Because of limits on prices and proceeds, the Chinese IPO market does not attract companies that need cash the most. Some regulations exclude firms from the domestic IPO market. Other regulations induce firms with large growth options to list abroad. Some IPO firms that raise large amounts of cash decide to pay large dividends shortly after going public. Investors interpret this behavior as evidence that they overestimated the growth options of these firms at the time of their IPO and react accordingly.

Suggested Citation

  • Yan Zhang & François Derrien & Xiaohui Wu & Qi Zeng, 2021. "The Unintended Consequences of Regulations in Emerging Financial Markets: Evidence from the Chinese IPO Market," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(9), pages 2583-2603, July.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2583-2603
    DOI: 10.1080/1540496X.2019.1689118
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2019.1689118
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2019.1689118?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hao-Chang Yang & Ferry Syarifuddin & Chun-Ping Chang & Hai-Jie Wang, 2022. "The Impact of Exchange Rate Futures Fluctuations on Macroeconomy: Evidence from Ten Trading Market," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(8), pages 2300-2313, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2583-2603. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.