Underwriter network structure and political connections in the Chinese IPO market

No Thumbnail Available
File version
Author(s)
Rumokoy, Lawren J
Neupane, Suman
Chung, Richard Y
Vithanage, Kulunu
Primary Supervisor
Other Supervisors
Editor(s)
Date
2019
Size
File type(s)
Location
License
Abstract

Using social network analysis, we examine China's equity underwriting network in the context of initial public offerings (IPOs), and we show that network centrality significantly enhances underwriter performance as measured by IPO outcomes. Among others, network centrality is positively associated with institutional participation and long-run performance. We further find that political connections contribute to the centrality of underwriters, as politically connected underwriters are not only highly connected, but also tied to well-connected peers. Our findings, which are robust to potential endogeneity bias, underscore the strategic importance of underwriter peer networks in the Chinese IPO process.

Journal Title
Pacific-Basin Finance Journal
Conference Title
Book Title
Edition
Volume
Issue
Thesis Type
Degree Program
School
Publisher link
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement
Item Access Status
Note
Access the data
Related item(s)
Subject
Accounting, auditing and accountability
Banking, finance and investment
Banking, finance and investment not elsewhere classified
Persistent link to this record
Citation
Collections