The Investment Performance Of "Environmental-friendly" Firms On IPO

The market performance of listed companies for IPO has always been the focus of domestic and foreign scholars,especially the first-day IPO excess returns,long-term performance and its influencing factors.In recent years,the social responsibility has caused the increasing concern of scholars with the prominence of global environmental pollution problems.At present,the impact of social responsibility on corporate market performance mainly forms the hypotheses of over-performance and under-performance,but there is no unified conclusion.Due to the late start of environmental protection in China,the research on the investment performance of the "environmental-friendly" firms is rarely,especially for IPO.As a result,we conduct a study on the investment performance of "environmental-friendly"firms on IPO.This paper aims to study whether there is "green premium" for green enterprises after IPO,and whether environmental performance variables can constitute the influencing factors of IPO market performance.In this paper,all listed IPO in Shanghai and Shenzhen A-share market from 2006 to 2015 are taken as the research object.The green environmental protection enterprises are defined according to the definition given by the State Environmental Protection Bureau in 2011.As a result,we get 245 green environmental protection enterprises and 245 non-green environmental enterprises as samples.The IPO market performance of the two sample companies was analyzed by descriptive statistics,traditional OLS regression,quantile regression,and other statistical methods.In the process of empirical test,the author first compares the green enterprises with the non-green enterprises,and then introduces the "green" dummy variables to carry out multiple linear regression.Finally this paper takes the unit output value of sewage charges as a surrogate variable for a robustness test in order to reach a conclusion whether there is "green premium".The empirical results show that,in terms of IPO underpricing,green enterprises are significantly lower than non-green enterprises,while there is no significant difference between the two samples for the long-term IPO performance.Finally,environmental performance does not constitute a factor which has a significant impact on IPO market performance.