Estimating the Cost of Capital Market Distortions: Evidence from Chinese Overseas IPOs
Prof. Guiying Laura Wu
Associate Professor in Economics, School of Social Sciences,
Nanyang Technological University
Date: 24 April 2025 (Thursday)
Time: 14:30 to 16:00
Venue: E22-4020
Host: Prof. Leona LI, Assistant Professor in Business Economics
Abstract
Both capital controls and domestic capital market regulations impose a cost on firms. By comparing to firms listed at home, we estimate the entrepreneurs of overseas listed Chinese firms are willing to pay a 60% haircut in firm value in order to bypass these costs. With a structurally estimated model, we quantify the welfare loss due to capital market distortions to be 18% for a representative Chinese entrepreneur.
Speaker
Prof. Guiying Laura Wu is an Associate Professor in Economics at Nanyang Technological University (NTU), Singapore. She holds a B.A. from Fudan University and a D.Phil. in Economics from the University of Oxford. Her research focuses on development economics, particularly firm investment, corporate finance, productivity, and the Chinese economy. Her work has been published in leading economics journals such as the Journal of Development Economics and the Journal of International Economics. Currently, she serves as an Associate Editor for Singapore Economic Review and Economic Modelling.
All are welcome!
