The Financial and Operating Performance of China's Newly Listed H-Firms
Author | : Samuel Gui Hai Huang |
Publisher | : |
Total Pages | : 40 |
Release | : 2002 |
ISBN-10 | : OCLC:1290398809 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book The Financial and Operating Performance of China's Newly Listed H-Firms written by Samuel Gui Hai Huang and published by . This book was released on 2002 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study compares, with the use of accounting data, the pre- and postlisting financial and operating performance for the complete sample of the H-firms that were incorporated in mainland China and listed in Hong Kong. Theoretically, there are two major opposing influences on the performance change of these newly listed firms: the negative IPO effect and the positive privatization effect. Our major findings are: (1) the IPO effect dominates the privatization effect, so that the H-firms experienced a significant decrease in profitability and operating efficiency after listing, and (2) the performance of a control sample of newly listed private firms declined more than that of the H-firms, probably because the positive privatization effect somewhat offset the negative IPO effect for the H-firms. This paper is the first to document the positive effect of revenue privatization in listed Chinese companies.