Institutional quality impacts on underpricing of IPOs in the Hong Kong market

This research aims to identify the connection of institutional quality with the underpricing level of IPOs. In Hong Kong, there are large number of IPOs each year. As one of financial market centres in Asia, H-shares attract many investors. Investors have to consider investing environment when searc...

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Main Author:	Wei, Haitian
Format:	Thesis
Language:	eng eng
Published:	2020
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/10375/1/permission%20to%20use-allowed.pdf https://etd.uum.edu.my/10375/2/s824273_01.pdf
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id	my-uum-etd.10375
record_format	uketd_dc
spelling	my-uum-etd.103752023-03-01T08:48:09Z Institutional quality impacts on underpricing of IPOs in the Hong Kong market 2020 Wei, Haitian Mohd Rashid, Rasidah School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance This research aims to identify the connection of institutional quality with the underpricing level of IPOs. In Hong Kong, there are large number of IPOs each year. As one of financial market centres in Asia, H-shares attract many investors. Investors have to consider investing environment when searching for the target markets. Hence, this study will offer new insights of determinants of IPO in H-shares. This paper uses cross-sectional analysis and ordinary least squares to find and interpreter the association of institutional quality and the underpricing level of IPO in Hong Kong stock market through information asymmetry, as well as signaling theory. Through theoretical research, it hypothesizes that voice and accountability, political stability, regulatory quality and corruption negatively affect IPO underpricing and also government effectiveness positively related to underpricing. Except for voice and accountability, the expectation of other four independent variables with underpricing are supported by the empirical results of regression. This study is significantly meaningful to investors, companies can governments. The governments and companies should increase the ability of regulatory quality and corruption control which can contribute to rise information transparency, thus attract increasing investors. Also, higher level of government effectiveness is a positive signal to investors. 2020 Thesis https://etd.uum.edu.my/10375/ https://etd.uum.edu.my/10375/1/permission%20to%20use-allowed.pdf text eng staffonly https://etd.uum.edu.my/10375/2/s824273_01.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Mohd Rashid, Rasidah
topic	HG Finance
spellingShingle	HG Finance Wei, Haitian Institutional quality impacts on underpricing of IPOs in the Hong Kong market
description	This research aims to identify the connection of institutional quality with the underpricing level of IPOs. In Hong Kong, there are large number of IPOs each year. As one of financial market centres in Asia, H-shares attract many investors. Investors have to consider investing environment when searching for the target markets. Hence, this study will offer new insights of determinants of IPO in H-shares. This paper uses cross-sectional analysis and ordinary least squares to find and interpreter the association of institutional quality and the underpricing level of IPO in Hong Kong stock market through information asymmetry, as well as signaling theory. Through theoretical research, it hypothesizes that voice and accountability, political stability, regulatory quality and corruption negatively affect IPO underpricing and also government effectiveness positively related to underpricing. Except for voice and accountability, the expectation of other four independent variables with underpricing are supported by the empirical results of regression. This study is significantly meaningful to investors, companies can governments. The governments and companies should increase the ability of regulatory quality and corruption control which can contribute to rise information transparency, thus attract increasing investors. Also, higher level of government effectiveness is a positive signal to investors.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Wei, Haitian
author_facet	Wei, Haitian
author_sort	Wei, Haitian
title	Institutional quality impacts on underpricing of IPOs in the Hong Kong market
title_short	Institutional quality impacts on underpricing of IPOs in the Hong Kong market
title_full	Institutional quality impacts on underpricing of IPOs in the Hong Kong market
title_fullStr	Institutional quality impacts on underpricing of IPOs in the Hong Kong market
title_full_unstemmed	Institutional quality impacts on underpricing of IPOs in the Hong Kong market
title_sort	institutional quality impacts on underpricing of ipos in the hong kong market
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2020
url	https://etd.uum.edu.my/10375/1/permission%20to%20use-allowed.pdf https://etd.uum.edu.my/10375/2/s824273_01.pdf
_version_	1776103803156692992

Institutional quality impacts on underpricing of IPOs in the Hong Kong market

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