The role of governance and bank funding in the determination of cornerstone allocations in Chinese equity offers
Publication in refereed journal

香港中文大學研究人員

引用次數
替代計量分析
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其它資訊
摘要This article investigates the causal factors underlying cornerstone investor (CI) participation in initial public offerings in China’s offshore Hong Kong market. Prospectus-based declarations on such allocations suggest that CI undertakings offer strong certification effects. Entrepreneurs planning for IPO thus have a material incentive to court CIs. The present analysis reveals that a firm’s pre-IPO financials and governance attributes strongly correlate with success in this field. Specifically, CI participation is greater in issuers with established long-term loan positions. Firms housing younger CEOs and a greater number of family-connected board officers also generate more CI interest. In contrast, the fraction of independent directors and women on boards exert minimal effect. However, further analysis reveals that greater independent director presence strongly supports CI participation in family-centric entities, but imparts little to no effect on such investment in either state-run or non-family-controlled private issuers. Additionally, an issuer’s political connections galvanize CI participation. Moreover, the present study highlights the importance of family resources (in non-state sponsored entities) and political connections (in state-held firms) in drawing-in CI involvement. Given the spread of CI arrangements to other primary market settings, the present enterprise also offers guidance on anchor investment elsewhere.
著者McGuinness PB
期刊名稱Journal of Risk and Financial Management
出版年份2019
月份7
日期2
卷號12
期次3
出版社MDPI
文章號碼114
國際標準期刊號1911-8066
語言美式英語

上次更新時間 2021-23-01 於 23:57