Li, Bo
[Verfasser:in]
;
Megginson, William L.
[Sonstige Person, Familie und Körperschaft];
Shen, Zhe
[Sonstige Person, Familie und Körperschaft];
Sun, Qian
[Sonstige Person, Familie und Körperschaft]
Why Don't Share Issue Privatizations Improve Profitability in China?
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 25, 2017 erstellt
Beschreibung:
Previous studies show that profitability does not improve after share issue privatization (SIP) in China. We explore the possibility that the positive privatization effect can be overwhelmed by a negative listing effect, leading to an overall negative or insignificant SIP profitability change. Using the difference-in-differences approach with various matched samples, we show that there is a positive privatization effect and there is a negative listing effect on profitability. We also document evidence of a significant improvement in profitability after separating the “pure” privatization effect from the SIP effect. Our findings are robust to alternative variable specifications and methodological changes