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

Paul Brockman; Tsz Wan Cheng; Tak Y. Leung

doi:10.1111/ajfs.12156

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 publication › Journal article › Academic research › peer-review

2 Citations (Scopus)

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 language	English
Pages (from-to)	886-915
Number of pages	30
Journal	Asia-Pacific Journal of Financial Studies
Volume	45
Issue number	6
DOIs	https://doi.org/10.1111/ajfs.12156
Publication status	Published - 1 Dec 2016

Keywords

Corporate investor
Foreign institutional investor
H-shares
IPO
Strategic investor

ASJC Scopus subject areas

Finance

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10.1111/ajfs.12156

Cite this

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title = "The Impact of Foreign Strategic and Corporate Investors on H-Share IPO Performance",

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.",

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N2 - 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.

AB - 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.

KW - Corporate investor

KW - Foreign institutional investor

KW - H-shares

KW - IPO

KW - Strategic investor

UR - https://www.scopus.com/pages/publications/85006437098

U2 - 10.1111/ajfs.12156

DO - 10.1111/ajfs.12156

M3 - Journal article

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JO - Asia-Pacific Journal of Financial Studies

JF - Asia-Pacific Journal of Financial Studies

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

Abstract

Keywords

ASJC Scopus subject areas

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