Case studies on companies that delisted from US and relisted in China
Name
1191230769-MIT.pdf
Size
807.68 KB
Format
Adobe PDF
Checksum (MD5)
53afb1e3fd8cdf6c203925882a76a828
Author(s)
Tian, Yuan,S.M.Sloan School of Management.
Advisor(s)
Christopher F. Noe.
Date Issued
2020
Publisher
Massachusetts Institute of Technology
Abstract
China concept stocks, the stock in a company that operates in mainland China and listed in the US, are becoming the largest group of non-native listed stocks in the US in terms of market value. This paper reviews the peaks and troughs of China concept stocks listed in the US in the past two decades, analyzes the reasons why Chinese companies have had to raise funds in the US, the benefits of an IPO in US stock market, and their post-IPO stock performance. In order to evaluate whether Chinese stocks listed in the US are successful or not, this paper tracks the status of 283 stocks that listed in the US from 2000 to 2019, uncovering the abnormal fact that nearly 1/3 of them ultimately delisted from US stock market. For the delisting stocks, this paper analyzes the effect of financial fraud at some companies and its overall negative impact on China concept stocks. The signal effect of fraud is so significant that over 80 companies claimed privatization under reputational pressures while only 8 companies were forced to delist due to financial fraud. Finally, this paper discusses the future of China concept stocks in the US and proposes some advice for Chinese companies.
Description
Thesis: S.M. in Management Research, Massachusetts Institute of Technology, Sloan School of Management, May, 2020
Cataloged from the official PDF of thesis.
Includes bibliographical references (pages 33-34).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
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MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided.
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