IPO Underpricing to Retain Family Control under Concentrated Ownership: Evidence from Hong Kong

摘要: This study examines whether family firms utilize IPO underpricing in order to retain control as a means of avoiding outside blockholders. Using sample listed Hong Kong where corporate ownership is concentrated, we find that larger associated with stronger involvement, and greater potential for diffusing among members. We further evidence strong involvement attract more subscription their shares, have less concentrated blockholdings, reduce slowly than do weak suggesting owners use blockholdings. also controlled by trusts underpricing, the trust are effective substitute methods retaining control.