Abstract
Some Chinese technology firms prefer to go public on US exchanges despite the launch of ChiNext as a NASDAQ-style board of the Shenzhen Stock Exchange in late 2009. Conventional hypotheses based on sales internationalization and issuing costs fail to explain this preference. Instead, our findings suggest the existence of a separating equilibrium in which small but profitable firms choose ChiNext and large firms backed by foreign venture capital prefer US exchanges as their IPO location. Our findings have broader implications for entrepreneurial finance in China. Policy suggestions are offered for increasing the number of foreign VC-backed IPOs on ChiNext.
| Original language | English |
|---|---|
| Pages (from-to) | 179–194 |
| Journal | International Review of Financial Analysis |
| Volume | 36 |
| Early online date | 28 Feb 2014 |
| DOIs | |
| Publication status | Published - Dec 2014 |
Keywords / Materials (for Non-textual outputs)
- IPO
- venture capital
- China
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Ufuk Gucbilmez discusses appeal of China's Nasdaq to foreign firms
Ufuk Gucbilmez
13/03/14
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