Variable definitions
| Variable | Definition |
|---|---|
| IPO_Rev Market Share | Revenue market share: a given underwriter's revenue from IPO underwriting as a percentage of all underwriters' total IPO underwriting revenues in a year |
| IPO_Num Market Share | Deal number market share: a given underwriter's number of IPOs handled as a percentage of all underwriters' total number of IPOs handled in a year |
| CAR6 | Cumulative abnormal return during the 6 months after IPO |
| CAR12 | Cumulative abnormal return during the 12 months after IPO |
| CAR18 | Cumulative abnormal return during the 18 months after IPO |
| Regional Economic Incentives | Dummy variable, coded 1 if the board chairman or general manager of the underwriter is currently serving or once served in the central government, local government, CSRC, the Army, representative of National People's Congress (NPC), or member of the Chinese People's Political Consultative Conference (CPPCC) and 0 otherwise |
| Central Economic Incentives | Dummy variable, coded 1 if the underwriter is subject to central economic incentives and 0 otherwise |
| Local Economic Incentives | Dummy variable, coded 1 if the underwriter is subject to local economic incentives and 0 otherwise |
| Diff in loc_cen Economic Incentives | Level difference between local economic incentives and central economic incentives. Where the underwriter is subject to central economic incentives, it is coded as −1, or where the underwriter is subject to local economic incentives, it is coded as 1 and 0 otherwise |
| CenGov | Dummy variable coded 1 if the actual controller of a given underwriter is a government entity and 0 otherwise |
| Rank10 | Dummy variable coded 1 if the underwriter's IPO revenues in t − 1 ranks among the top 10 and 0 otherwise |
| passrate | Pass rate, defined as the number of IPOs approved by the CSRC's Issuance and Examination Committee, divided by the total number of approved IPOs |
| lpassrate | Underwriter's pass rate in t − 1 |
| FirmAge | Firm age since incorporation when the IPO application reaches the CSRC's Issuance and Examination Committee |
| SIZE | Average firm size (average natural logarithm of total assets) in the 3 years prior to IPO |
| CR | Average current ratio in the 3 years prior to IPO, defined as the average of the firm's current assets to current liability ratio |
| INV | Average inventory ratio in the 3 years prior to IPO, defined as the average of year-end inventory to total assets ratio |
| OCF | Average operating cash flow return (operating cash flow in a year divided by year-end total assets) in the 3 years prior to IPO |
| ROE | Average return on equity (net income divided by end-year net total assets) in the 3 years prior to IPO |
| EarnMgmt | Average earnings management (net profit from non-operating activities, divided by year-end total assets) in the 3 years prior to IPO |
| LEV | Average leverage (year-end total liabilities divided by total assets) in the 3 years prior to IPO |
| SOE | Dummy variable coded 1 if the actual controller is a government entity and 0 otherwise |
| FirBgd | Coded 3 if the firm's general manager or board chairman is currently working or once worked at or above the deputy provincial level, 2 for the bureau level, 1 for the deputy bureau level and 0 in all other cases |
| IPOwait | IPO waiting period: the number of days between the listing date and the signing date of the IPO prospectus |
| Variable | Definition |
|---|---|
| IPO_Rev Market Share | Revenue market share: a given underwriter's revenue from IPO underwriting as a percentage of all underwriters' total IPO underwriting revenues in a year |
| IPO_Num Market Share | Deal number market share: a given underwriter's number of IPOs handled as a percentage of all underwriters' total number of IPOs handled in a year |
| CAR6 | Cumulative abnormal return during the 6 months after IPO |
| CAR12 | Cumulative abnormal return during the 12 months after IPO |
| CAR18 | Cumulative abnormal return during the 18 months after IPO |
| Regional Economic Incentives | Dummy variable, coded 1 if the board chairman or general manager of the underwriter is currently serving or once served in the central government, local government, CSRC, the Army, representative of National People's Congress (NPC), or member of the Chinese People's Political Consultative Conference (CPPCC) and 0 otherwise |
| Central Economic Incentives | Dummy variable, coded 1 if the underwriter is subject to central economic incentives and 0 otherwise |
| Local Economic Incentives | Dummy variable, coded 1 if the underwriter is subject to local economic incentives and 0 otherwise |
| Diff in loc_cen Economic Incentives | Level difference between local economic incentives and central economic incentives. Where the underwriter is subject to central economic incentives, it is coded as −1, or where the underwriter is subject to local economic incentives, it is coded as 1 and 0 otherwise |
| CenGov | Dummy variable coded 1 if the actual controller of a given underwriter is a government entity and 0 otherwise |
| Rank10 | Dummy variable coded 1 if the underwriter's IPO revenues in |
| passrate | Pass rate, defined as the number of IPOs approved by the CSRC's Issuance and Examination Committee, divided by the total number of approved IPOs |
| lpassrate | Underwriter's pass rate in |
| FirmAge | Firm age since incorporation when the IPO application reaches the CSRC's Issuance and Examination Committee |
| SIZE | Average firm size (average natural logarithm of total assets) in the 3 years prior to IPO |
| CR | Average current ratio in the 3 years prior to IPO, defined as the average of the firm's current assets to current liability ratio |
| INV | Average inventory ratio in the 3 years prior to IPO, defined as the average of year-end inventory to total assets ratio |
| OCF | Average operating cash flow return (operating cash flow in a year divided by year-end total assets) in the 3 years prior to IPO |
| ROE | Average return on equity (net income divided by end-year net total assets) in the 3 years prior to IPO |
| EarnMgmt | Average earnings management (net profit from non-operating activities, divided by year-end total assets) in the 3 years prior to IPO |
| LEV | Average leverage (year-end total liabilities divided by total assets) in the 3 years prior to IPO |
| SOE | Dummy variable coded 1 if the actual controller is a government entity and 0 otherwise |
| FirBgd | Coded 3 if the firm's general manager or board chairman is currently working or once worked at or above the deputy provincial level, 2 for the bureau level, 1 for the deputy bureau level and 0 in all other cases |
| IPOwait | IPO waiting period: the number of days between the listing date and the signing date of the IPO prospectus |
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