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Abstract In this study, we examine whether the adoption of convergent-IFRS in China reduces IPO underpricing, which is of interest to investors and regulators. Using panel data from 2,666 non-financial… Click to show full abstract
Abstract In this study, we examine whether the adoption of convergent-IFRS in China reduces IPO underpricing, which is of interest to investors and regulators. Using panel data from 2,666 non-financial IPOs of A-shares listed on the Shanghai and Shenzhen Stock Exchanges between 1996 and 2019, the study shows that the adoption of convergent-IFRS mitigates the phenomenon of IPO underpricing in China and this transition benefit is not moderated by the proportion of SOEs. We fill the gap in the literature with a contribution to global evidence on the adoption of IFRS standards.
Journal Title: Finance Research Letters
Year Published: 2020
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