| Author: | Tang, Xiaojiao |
| Title: | Innovation capability : key driver which influence the IPO performance of biotech companies in Hong Kong and mainland China |
| Degree: | D.B.A. |
| Year: | 2024 |
| Subject: | Biotechnology industries Going public (Securities) Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | 96 pages |
| Language: | English |
| Abstract: | Since 2018, the Hong Kong Stock Exchange and the Shanghai Stock Exchange have allowed biotechnology companies without revenue or profits to list, providing these companies with favorable financing conditions. Coinciding with the outbreak of the COVID-19 pandemic, this sector experienced a boom period. However, as the pandemic has subsided, these companies have been slow to generate revenue, diminishing patience among capital market participants and poor performance in the secondary market. Given the underperformance of these companies post-initial public offering (IPO) and inspired by the development trajectory of the biotechnology sector in U.S. stock markets, this study focuses on the characteristics of biotechnology companies. Innovation capability is the most crucial factor influencing the IPO pricing and post-IPO performance of biotechnology companies. In this study, the number of R&D personnel (RDP), R&D expenditures, and pipeline quantity are used to measure innovation capability and further explore the relationships between innovation capability and first-day returns and between innovation capability and three-year abnormal returns post-IPO. The findings show that the number of RDP is negatively correlated with first-day returns, whereas the R&D expenditure is positively correlated with three-year abnormal returns post-IPO. These findings highlight the correlation between innovation capability and the IPO performance of biotechnology companies, revealing key considerations in pricing strategies for biotechnology firms that lack both revenue and profits. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 7923.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 743.02 kB | Adobe PDF | View/Open |
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