Time：16:15-17:30, Jan 6th 2020,Monday

Venue：Tongji Building BlockA Room305

Speaker：Lirong Shi, Accounting at NUS Business School, PhD

Abstract: This study examines the evolution of Chinese firms’ overseas IPO location choices since 1990 across different countries. Specifically, we examine four research questions: 1) What makes an overseas stock exchange attractive to Chinese companies? 2) Is the initial post-listing valuation different for Chinese companies across stock exchanges? 3) Is the long-term performance different for Chinese companies across stock exchanges? 4) Can investors in destination stock exchanges get diversification benefits from owning Chinese companies? The study provides relevant information to struggling stock exchanges such as Singapore Stock Exchange on how to attract foreign listings and at the same time effectively regulate these foreign companies. We find that stock exchanges that can provide better liquidity and with higher certifying value are more attractive to Chinese IPOs. Generally, risky Chinese companies are more likely to list in Singapore, compared with those listed in Hong Kong and the United States, and better-governed (high-growth) Chinese companies are more likely to list in Hong Kong (the United States), compared with those listed in Singapore. There are no significant initial valuation differences across markets. We observe overall negative long-term performance of Chinese IPOs in overseas markets, but no significant differences in long-term abnormal return across Singapore, Hong Kong, and the United States. Despite the negative long-term performance, Chinese companies do bring diversification benefits to investors in some destination countries.

Speaker’s Bio: Lirong Shi is a PhD candidate in Accounting at NUS Business School. Her research area focuses on valuation, corporate governance and financial reporting. Her dissertation examines the role of stock exchanges in the evolution of the Chinese firms’ overseas IPO behavior since 1990.She also dug deep into the institutional background of Singapore capital market during her PhD journey.