TY - JOUR T1 - Do Chinese IPOs Really Underperform in the Long Run? JF - The Journal of Portfolio Management SP - 84 LP - 91 DO - 10.3905/jpm.2015.41.5.084 VL - 41 IS - 5 AU - Zhe Shen AU - Limin Chen AU - Qian Sun Y1 - 2015/01/31 UR - https://pm-research.com/content/41/5/84.abstract N2 - The empirical examination of the long-term performance of Chinese initial public offerings (IPOs) is the subject of this article. Using the calendar-time factor-regression method, the authors find that Jensen’s alpha, their measure for post-IPO three-year abnormal returns for 245 monthly IPO portfolios from July 1992 through December 2012, can vary from –1.15% to 0.49% per month, depending on factor specifications in the regression and weighting specifications in the portfolio formation. However, alpha estimates in almost all factor-weighting scenarios do not differ from zero after correcting for the new listing bias, indicating that Chinese IPOs do not underperform in the long run compared with their non-IPO counterparts. The findings report in this article highlight the importance of measurement problems in estimating long-term performance of Chinese IPOs.TOPICS: Emerging, portfolio management/multi-asset allocation ER -