Publication Type
PhD Dissertation
Version
publishedVersion
Publication Date
6-2022
Abstract
As secondary stock markets often overestimate corporate value, many Chinese entrepreneurs seek to achieve their wealth targets by going public. However, some companies in China do not want to go public. This paper utilises multi-case research methods to develop theories about which factors lead to corporate reluctance to go public. Case studies show that compared with entrepreneurs with lower shareholdings, entrepreneurs with higher shareholdings have stronger long-term orientations and a greater desire for control and are more reluctant to go public. Industry characteristics affect entrepreneurs’ long-term orientation, desire for control, and early listing experience, thus influencing their listing decision-making. Empirical tests were also performed on data from the Seventh China Private Enterprise Survey, which was conducted in 2006. The results show that there are differences between industries regarding enterprises’ decisions not to list, and that entrepreneurs with higher shareholding ratios are more reluctant to go public than entrepreneurs with lower shareholding ratios. However, the results also show that the current shareholding ratio of entrepreneurs does not have a significant impact on their listing decision. This study expands theory on why entrepreneurs are unwilling to list and has significant practical value. The securities market has the task of discovering high-quality enterprises. However, the entrepreneurs of some excellent enterprises may decide not to go public for fear of losing control or developing a short-term orientation after listing. To this end, China’s securities market policymakers should optimise institutional links, reduce the possibility of short-term behaviour in the securities market, and reduce entrepreneurs’ concerns about listing by reforming the ‘same rights for same shares’ system.
Keywords
industry characteristics, long-term orientation, desire for control, previous experience, go public, IPOs, Chinese entrepreneurs, China
Degree Awarded
Doctor of Bus Admin (CKGSB)
Discipline
Asian Studies | Business Administration, Management, and Operations | Entrepreneurial and Small Business Operations
Supervisor(s)
TU, Jun
Publisher
Singapore Management University
City or Country
Singapore
Citation
HUANG, Ting.
Under what circumstances are Chinese entrepreneurs reluctant to go public. (2022).
Available at: https://ink.library.smu.edu.sg/etd_coll/429
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Included in
Asian Studies Commons, Business Administration, Management, and Operations Commons, Entrepreneurial and Small Business Operations Commons