The Initial Public Offerings Performance of Chinese Stocks in the U.S.
This study analyzes the Initial Public Offering (IPO) performance of 147 Chinese stocks that went public on the U.S. market from 2000 to 2014. The sample is composed of two distinct groups. The first group of firms (which includes 63 securities) went public in the U.S. between 2000 to 2014 and later exited the U.S market. The second group of firms (which includes 84 securities) went public in the U.S. and still has stocks trading on the U.S market. The study utilizes an event study methodology to examine the short-term IPO performance difference between the two group of stocks. After computing abnormal and cumulative abnormal returns and then comparing the mean, median and t-statistics between the two groups, I found no significant difference between the two groups of stocks.