Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212128 
Year of Publication: 
2009
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 7/2009
Publisher: 
Bank of Finland, Helsinki
Abstract: 
We examine how political connections impact the process of going public. Specifically, we test how political connections impact the pricing of newly offered shares, the magnitude of underpricing, and the fixed cost of going public. Based on experiences of the new public firms in the Chinese security markets and using multiple measures of political connections, we find robust evidence that issuing firms with political connections reap significant preferential benefits from going public. To be specific, we find that firms irrespective of ownership arrangements with greater political connections have higher offering prices, less underpricing, and lower fixed costs during the going-public process.
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-495-4
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.