Financial constraints and investment thirst in Chinese reverse merger companies

Zijian Cheng; Grant Fleming; Zhangxin Frank Liu

doi:10.1111/acfi.12324

Financial constraints and investment thirst in Chinese reverse merger companies

Zijian Cheng, Grant Fleming, Zhangxin Frank Liu

Research output: Contribution to journal › Article › peer-review

11 Citations (Scopus)

Abstract

Using a hand-collected data set of Chinese reverse mergers (RM) between 2006 and 2015, we find that financial constraints are more serious and investment thirst higher for RM companies as compared with initial public offering (IPO) companies. For state-owned enterprises (SOEs), listing via a RM or an IPO does not impact the level of financial constraints post-listing, while SOE RMs have higher investment thirst than SOE IPOs. By contrast, non-SOE RMs are under more financial constraints and have higher investment thirst than non-SOE IPOs. These differences are not presented during the 4 Trillion Yuan stimulus period between 2008 and 2010.

Original language	English
Pages (from-to)	1315-1347
Number of pages	33
Journal	Accounting and Finance
Volume	57
Issue number	5
DOIs	https://doi.org/10.1111/acfi.12324
Publication status	Published - 1 Dec 2017

Access to Document

10.1111/acfi.12324

Cite this

@article{be9450a86e9f448e96403d91b14748fa,

title = "Financial constraints and investment thirst in Chinese reverse merger companies",

abstract = "Using a hand-collected data set of Chinese reverse mergers (RM) between 2006 and 2015, we find that financial constraints are more serious and investment thirst higher for RM companies as compared with initial public offering (IPO) companies. For state-owned enterprises (SOEs), listing via a RM or an IPO does not impact the level of financial constraints post-listing, while SOE RMs have higher investment thirst than SOE IPOs. By contrast, non-SOE RMs are under more financial constraints and have higher investment thirst than non-SOE IPOs. These differences are not presented during the 4 Trillion Yuan stimulus period between 2008 and 2010.",

keywords = "China, Financial Constraints, Initial public offering, Investment Thirst, Reverse Mergers, State-Owned Enterprises",

author = "Zijian Cheng and Grant Fleming and Liu, {Zhangxin Frank}",

year = "2017",

month = dec,

day = "1",

doi = "10.1111/acfi.12324",

language = "English",

volume = "57",

pages = "1315--1347",

journal = "Accounting & Finance",

issn = "0810-5391",

publisher = "John Wiley & Sons",

number = "5",

}

TY - JOUR

T1 - Financial constraints and investment thirst in Chinese reverse merger companies

AU - Cheng, Zijian

AU - Fleming, Grant

AU - Liu, Zhangxin Frank

PY - 2017/12/1

Y1 - 2017/12/1

N2 - Using a hand-collected data set of Chinese reverse mergers (RM) between 2006 and 2015, we find that financial constraints are more serious and investment thirst higher for RM companies as compared with initial public offering (IPO) companies. For state-owned enterprises (SOEs), listing via a RM or an IPO does not impact the level of financial constraints post-listing, while SOE RMs have higher investment thirst than SOE IPOs. By contrast, non-SOE RMs are under more financial constraints and have higher investment thirst than non-SOE IPOs. These differences are not presented during the 4 Trillion Yuan stimulus period between 2008 and 2010.

AB - Using a hand-collected data set of Chinese reverse mergers (RM) between 2006 and 2015, we find that financial constraints are more serious and investment thirst higher for RM companies as compared with initial public offering (IPO) companies. For state-owned enterprises (SOEs), listing via a RM or an IPO does not impact the level of financial constraints post-listing, while SOE RMs have higher investment thirst than SOE IPOs. By contrast, non-SOE RMs are under more financial constraints and have higher investment thirst than non-SOE IPOs. These differences are not presented during the 4 Trillion Yuan stimulus period between 2008 and 2010.

KW - China

KW - Financial Constraints

KW - Initial public offering

KW - Investment Thirst

KW - Reverse Mergers

KW - State-Owned Enterprises

UR - http://www.scopus.com/inward/record.url?scp=85044429607&partnerID=8YFLogxK

U2 - 10.1111/acfi.12324

DO - 10.1111/acfi.12324

M3 - Article

AN - SCOPUS:85044429607

VL - 57

SP - 1315

EP - 1347

JO - Accounting & Finance

JF - Accounting & Finance

SN - 0810-5391

IS - 5

ER -

Financial constraints and investment thirst in Chinese reverse merger companies

Abstract

Access to Document

Other files and links

Fingerprint

Cite this