Using a comprehensive sample of reverse merger (RM) transactions, we examine the effects of China's IPO regulations on the prices and returns of its publicly listed stocks. During 2007-2015, unlisted Chinese firms paid an average of 3 to 4 Billion RMB for each listed shell, an amount exceeding...

This study documents the pervasive effect of IPO restrictions on Chinese equity markets. From 2007-2018, unlisted firms paid an average of $562M USD to listed firms for their shell value in reverse merger transactions. This large “shadow price” for public-listing explains many unusual...

This paper studies estimation in linear dynamic panel data models with multiple interactive effects when both N and T are large. We derive the bias term in an order p dynamic panel data model and the limiting distribution of the estimator. Simulation results show good finite sample properties of...