The underperformance of the growth enterprise market in Hong Kong

Chan, PT; Moshirian, F; Wu, E

The underperformance of the growth enterprise market in Hong Kong

Chan, PT Moshirian, F Wu, E

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Publisher:: Elsevier Inc
Publication Type:: Journal Article
Citation:: Research in International Business and Finance, 2007, 21 (3), pp. 428 - 446
Issue Date:: 2007-01

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Field	Value	Language
dc.contributor.author	Chan, PT	en_US
dc.contributor.author	Moshirian, F	en_US
dc.contributor.author	Wu, E	en_US
dc.date.issued	2007-01	en_US
dc.identifier.citation	Research in International Business and Finance, 2007, 21 (3), pp. 428 - 446	en_US
dc.identifier.issn	0275-5319	en_US
dc.identifier.uri	http://hdl.handle.net/10453/15877
dc.description.abstract	This paper examines the stock return performance of the IPO stocks which are listed on the Growth Enterprise Market (GEM) in Hong Kong. By using several benchmarks, over 3 years, this paper finds that the results produced are sensitive to the benchmark employed. The two factors causing the underperformance of GEM stocks are the `technology boom and `IPO effects. This suggests that appropriate benchmarks are very important for assessing the performance of newly issued stocks. The results of the cross-sectional analyses suggest that the Hong Kong GEM is a unique market. Since at least 70 percent of the IPO stocks listed on theGEMare technology stocks, the `technology factor outweighs the various hypotheses advocated by previous researchers to explain the poor performance of newly listed stocks.	en_US
dc.publisher	Elsevier Inc	en_US
dc.relation.ispartof	Research in International Business and Finance	en_US
dc.relation.isbasedon	https://doi.org/10.1016/j.ribaf.2007.02.003	en_US
dc.rights	Elsevier required licence: © 2007 . This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/. The definitive publisher version is available online at https://doi.org/10.1016/j.ribaf.2007.02.003	en_US
dc.subject.classification	Finance	en_US
dc.title	The underperformance of the growth enterprise market in Hong Kong	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	21	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	open_access
pubs.consider-herdc	false	en_US
pubs.issue	3	en_US
pubs.volume	21	en_US

Abstract:

This paper examines the stock return performance of the IPO stocks which are listed on the Growth Enterprise Market (GEM) in Hong Kong. By using several benchmarks, over 3 years, this paper finds that the results produced are sensitive to the benchmark employed. The two factors causing the underperformance of GEM stocks are the `technology boom and `IPO effects. This suggests that appropriate benchmarks are very important for assessing the performance of newly issued stocks. The results of the cross-sectional analyses suggest that the Hong Kong GEM is a unique market. Since at least 70 percent of the IPO stocks listed on theGEMare technology stocks, the `technology factor outweighs the various hypotheses advocated by previous researchers to explain the poor performance of newly listed stocks.

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http://hdl.handle.net/10453/15877