A Study on Comparison of Chinese IPO Underpricing and Performance During Asian and Prevailing Global Economic Crisis

摘要

By considering the two time windows of crises, first one is the time period of Asian financial crisis (1997-1999) and the other one is the prevailing global economic crisis (2007-2009), the pattern of underpricing and aftermarket performance are studied. A sample of 626 companies and Market adjusted return model are used. Result indicates that in the recent global economic crisis IPO activity is on shrinking trend and there is 10% increase in average underpricing as compared to last Asian financial crisis. There is a fluctuating trend in aftermarket performance of IPO returns. A minimum return of 62% in 2009 is observed.