The Impact of Foreign Strategic and Corporate Investors on H-Share IPO Performance

Paul Brockman, Tsz Wan Cheng, Tak Y. Leung

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

We examine the impact of strategic and corporate investors on H-shares before, during, and after their IPOs. We observe that strategic and corporate investors select their investment candidates based on specific pre-IPO firm characteristics. The certification effect of corporate investors generates a significantly positive effect on outside investor demand. In addition, the presence of foreign institutional investors, particularly strategic investors, and post-IPO performance are positively related. Overall, we document a positive effect of foreign institutional investors on H-firms.
Original languageEnglish
Pages (from-to)886-915
Number of pages30
JournalAsia-Pacific Journal of Financial Studies
Volume45
Issue number6
DOIs
Publication statusPublished - 1 Dec 2016

Keywords

  • Corporate investor
  • Foreign institutional investor
  • H-shares
  • IPO
  • Strategic investor

ASJC Scopus subject areas

  • Finance

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