Loosening of Access Threshold and Downturns in Listed Firms Performance: A Quasi-Natural Experiment from the “IPO Green Channel” for Poverty Alleviation
The China Securities Regulatory Commission (CSRC) proposed the green channel policy for poverty alleviation Initial Public Offerings (IPOs), aiming to help poverty-stricken areas reduce poverty and increase income, but it has an impact on the business performance of the companies involved. This pape...
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| Format: | Article |
| Language: | English |
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Wiley
2022-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2022/5380814 |
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| author | Yi Sun Chunying Cui Ya Gao Chunyan Zhao |
| author_facet | Yi Sun Chunying Cui Ya Gao Chunyan Zhao |
| author_sort | Yi Sun |
| collection | DOAJ |
| description | The China Securities Regulatory Commission (CSRC) proposed the green channel policy for poverty alleviation Initial Public Offerings (IPOs), aiming to help poverty-stricken areas reduce poverty and increase income, but it has an impact on the business performance of the companies involved. This paper uses data from public annual reports of listed companies to construct a policy intervention group and a control group and comparatively analyzes the degree of annual performance downturn of newly listed companies in A-share from 2016 to 2017 through a counterfactual method, and the results show that the “IPO green channel” policy for poverty alleviation has an obvious negative effect on listed enterprises in poverty-stricken counties. The results show that enterprises listed via the green channel have more significant performance downturn than those listed normally during the same period. This paper suggests that the distortion of the market issuance system causes the declining of the quality of IPO firms. Finally, this paper suggests that regulators should cooperate with local governments actively to ensure the smooth implementation of the government’s poverty alleviation efforts while balancing market equity and efficiency. The SFC should take more consideration of institutional compatibility for policy output in financial poverty alleviation to avoid institutional alienation and distortion of corporate behavior. |
| format | Article |
| id | doaj-art-37e1b896d9944f5d95e3ae5e5d2ff366 |
| institution | Kabale University |
| issn | 1607-887X |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-37e1b896d9944f5d95e3ae5e5d2ff3662025-02-03T05:57:27ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/5380814Loosening of Access Threshold and Downturns in Listed Firms Performance: A Quasi-Natural Experiment from the “IPO Green Channel” for Poverty AlleviationYi Sun0Chunying Cui1Ya Gao2Chunyan Zhao3Department of Economics and ManagementDepartment of Economics and ManagementCenter for Internet and Industrial Innovation Development ResearchSchool of Intellectual PropertyThe China Securities Regulatory Commission (CSRC) proposed the green channel policy for poverty alleviation Initial Public Offerings (IPOs), aiming to help poverty-stricken areas reduce poverty and increase income, but it has an impact on the business performance of the companies involved. This paper uses data from public annual reports of listed companies to construct a policy intervention group and a control group and comparatively analyzes the degree of annual performance downturn of newly listed companies in A-share from 2016 to 2017 through a counterfactual method, and the results show that the “IPO green channel” policy for poverty alleviation has an obvious negative effect on listed enterprises in poverty-stricken counties. The results show that enterprises listed via the green channel have more significant performance downturn than those listed normally during the same period. This paper suggests that the distortion of the market issuance system causes the declining of the quality of IPO firms. Finally, this paper suggests that regulators should cooperate with local governments actively to ensure the smooth implementation of the government’s poverty alleviation efforts while balancing market equity and efficiency. The SFC should take more consideration of institutional compatibility for policy output in financial poverty alleviation to avoid institutional alienation and distortion of corporate behavior.http://dx.doi.org/10.1155/2022/5380814 |
| spellingShingle | Yi Sun Chunying Cui Ya Gao Chunyan Zhao Loosening of Access Threshold and Downturns in Listed Firms Performance: A Quasi-Natural Experiment from the “IPO Green Channel” for Poverty Alleviation Discrete Dynamics in Nature and Society |
| title | Loosening of Access Threshold and Downturns in Listed Firms Performance: A Quasi-Natural Experiment from the “IPO Green Channel” for Poverty Alleviation |
| title_full | Loosening of Access Threshold and Downturns in Listed Firms Performance: A Quasi-Natural Experiment from the “IPO Green Channel” for Poverty Alleviation |
| title_fullStr | Loosening of Access Threshold and Downturns in Listed Firms Performance: A Quasi-Natural Experiment from the “IPO Green Channel” for Poverty Alleviation |
| title_full_unstemmed | Loosening of Access Threshold and Downturns in Listed Firms Performance: A Quasi-Natural Experiment from the “IPO Green Channel” for Poverty Alleviation |
| title_short | Loosening of Access Threshold and Downturns in Listed Firms Performance: A Quasi-Natural Experiment from the “IPO Green Channel” for Poverty Alleviation |
| title_sort | loosening of access threshold and downturns in listed firms performance a quasi natural experiment from the ipo green channel for poverty alleviation |
| url | http://dx.doi.org/10.1155/2022/5380814 |
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