IPO Under-pricing of pharmaceutical companies in China between 2010 and 2015

Yu, Meng Hui (2016) IPO Under-pricing of pharmaceutical companies in China between 2010 and 2015. Masters thesis, INTI International University.


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The extremely high A-share Initial public offerings (IPOs) under-pricing in China’s primary market provides us with a very interesting area of empirical research. This study focuses on the pharmaceutical industry which is a knowledge-based, technology-intensive industry and has become one of the leading industries in China. Based on regression analysis of 66 pharmaceutical A-shares companies that went public through IPOs at both Shanghai and Shenzhen Stock Exchanges in China during 2010-2015, we find that 89.4% of pharmaceutical firms were undervalued. This study also finds that 1) IPO underpricing is negatively related to the firm size (asset) and positively related to IPO volume; 2) issuing time and underwriter reputation have no impact on IPO underpricing. The paper further discuss and analyse the potential and analyse the potential and specific factors that may have influence on IPO underpricing due to the pharmacy industry’s particularity, besides these factors have been lacking in the IPO literature.

Item Type: Thesis (Masters)
Additional Information: MBA 224
Uncontrolled Keywords: Initial public offerings, underpricing, pharmaceutical companies
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business, Communications & Law
Depositing User: Unnamed user with email masilah.mansor@newinti.edu.my
Date Deposited: 25 Sep 2017 06:44
Last Modified: 25 Sep 2017 06:44
URI: http://eprints.intimal.edu.my/id/eprint/936

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