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10 July 2020 The Impacts of Market Timing on Capital Structure: An Empirical Study of Initial Public Offerings in the Coastal Regions of China
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Abstract

Dong, H.H.; Zhang, R., and Xie, B.J., 2020. The impacts of market timing on capital structure: An empirical study of initial public offerings in the coastal regions of China. In: Gong, D.; Zhang, M., and Liu, R. (eds.), Advances in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 106, pp. 329–333. Coconut Creek (Florida), ISSN 0749-0208.

By analyzing initial public offering (IPO) data of 580 firms that are located in coastal areas listed in China's A-share market from 2003 to 2012, this article studies the impact of market timing on capital structure of these firms. Evidence suggests that capital structure of the firms is affected by the market timing attempts. Furthermore, hot-market firms decrease the leverage ratio by issuing more equity in the year of the IPO compared with its cold-market counterparts. Empirical examination shows that these attempts persist for a short term after the IPO, and reversal takes time.

©Coastal Education and Research Foundation, Inc. 2020
Haohan Dong, Rong Zhang, and Bojie Xie "The Impacts of Market Timing on Capital Structure: An Empirical Study of Initial Public Offerings in the Coastal Regions of China," Journal of Coastal Research 106(sp1), 329-333, (10 July 2020). https://doi.org/10.2112/SI106-076.1
Received: 30 November 2019; Accepted: 5 January 2020; Published: 10 July 2020
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