Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Reader 1

Smith Janet


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.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.