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Stairway to heaven or gateway to hell? A competing risk analysis of delistings from Hong Kong's Growth Enterprise Market

Cressy, Robert and Farag, Hisham (2014) Stairway to heaven or gateway to hell? A competing risk analysis of delistings from Hong Kong's Growth Enterprise Market. Discussion Paper. University of Birmingham, Birmingham.

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A competing risk hazard model is employed to examine the reasons for Hong Kong's Growth Enterprise (GEM) companies transferring to the Main Board (MB) in the period 2000-2012. In our sample during the period 21 companies or 15% of the original stock moved up to the MB. The modal life expectancy of a GEM company was about eight years. Companies that did not move up to the MB were at a small risk of delisting due to long term suspension or liquidation, but the great majority just remained where they were. Regarding the factors behind transfer to the MB, of the 129 companies listed on the GEM in the period, we find that companies with higher net profit and greater product market power were more likely to graduate in the following year. However, companies with lower growth, higher financial risk and those audited

Type of Work:Monograph (Discussion Paper)
School/Faculty:Colleges (2008 onwards) > College of Social Sciences
Number of Pages:39
Department:Birmingham Business School, Department of Accounting and Finance
Date:13 March 2014
Series/Collection Name:Birmingham Business School Discussion Paper Series
Keywords:IPO, new listing, survival, delisting, GEM
Subjects:H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce
Copyright Status:This discussion paper is copyright of the University, the author and/or third parties. The intellectual property rights in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or as modified by any successor legislation. Any use made of information contained in this paper must be in accordance with that legislation and must be properly acknowledged. Copies of the paper may be distributed ad quotations used for research and study purposes, with due attribution. However, commercial distribution or reproduction in any format is prohibited without the permission of the copyright holder.
Copyright Holders:The Authors and the University of Birmingham
ID Code:1881

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