This paper investigates the effects of export in the underpricing phenomenon of the Chinese IPO markets, using data from 1,285 IPO firms listed on the Shanghai and Shenzhen Exchanges from 1987 to 2015, and find that exports have a negative effect on initial returns. Second, the effect of exports...

As emphasized by Barney (1986), any explanation of superior profitability must account for why the resources supporting such profitability could have been acquired for a price below their rent generating capacity. Building upon the literature in economics on coordination failures and incomplete...