37
H
3.c
:
Non-Finance
companies
tend
to choose
book
building
as their
marketing
method to reduce information
asymmetry.
Reputation of
SOE, political and
economic factor has
decreased the tendency to
choose
book
building
marketing
method.
Private
company
will suffer
from more
information
asymmetry,
since the reputation
level
is lower
than SOE.
Therefore
book
built IPOs are the first choice for the marketing method for private owned issuers.
H3
.d
:
Privately
owned
companies
tend
to
choose
book
building
as
their
marketing
method to reduce information
asymmetry.
High
risk
factors
will
increased
the
uncertainties
in
the
company’s
future
prospects.
Company
with
higher
risk
factors
will suffer
from
more
information
asymmetry
between
issuers and
investors,
since
investors
will
face
higher
ambiguities
in
valuing
the
shares.
Therefore
book
built
IPOs
are
the
first
choice
for
the
marketing
method
for high-risk companies.
H
3.e
:
Companies
with
high
risk
factors
tend
to
choose
book
building
as their
marketing method to reduce information asymmetry.
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