Ownership structure, insider behavior, and IPO performance of SMEs in China

S. Ramakrishna Velamuri (First Author), Wilson Liu (Participant Author)

Research output: Contribution to journalJournal


This paper examines the drivers of IPO performance of 783 SMEs in China between 2009 and 2012 that were listed on the SME and Growth Enterprise Boards. The study finds that firms that had prior venture capital (VC) investment did not perform better than those that did not. Among VC-invested firms, ventures (1) with strong VC control rights relative to those of the largest block shareholder, (2) with former ownership affiliation between the VC and the underwriter, and (3) that paid higher IPO fees had a negative long-term performance. The negative relationship between VC-underwriter ownership affiliation and long-term performance decreases as the reputation of the underwriter increases.
Original languageEnglish
Pages (from-to)771-793
JournalSmall Business Economics
Issue number3
Publication statusPublished - 2016

Corresponding author email



  • IPO
  • IPO performance
  • Insider behavior
  • Ownership structure
  • Transition economies
  • Venture capital

Indexed by

  • Scopus
  • SSCI


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