Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
This thesis uses statistical evidence to test the performance hypothesis that Chinese politically connected firms demonstrate better performance than their non-politically connected counterparts subsequent to their respective overseas listings. The study uses data on 136 US-listed Chinese firms that went public between 1991 and 2017 with a focus on listings on the National Association of Securities Dealers Automated Quotations (NASDAQ) and the New York Stock Exchange (NYSE). The findings, derived from multiple multivariate regression tests with market- and accounting-based performance measures, are inconsistent with the hypothesis. On the contrary, the results reveal that politically connected firms underperformed non-politically connected firms based on one-, two-, three-year, as well as fifteen-, thirty-day, post-IPO stock returns; three-year post-IPO earnings growth; sales growth; and change in returns on sales.
Chu, Ruyan, "A Case Study on Chinese Politically Connected Firms Post-US Listing" (2021). CMC Senior Theses. 2781.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.