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Equity Financing and Exports: Evidence from IPO Approvals in China -- by Robin Kaiji Gong, Yao Amber Li, Stephen Teng Sun, Shang-Jin Wei
A new academic study examines how access to equity financing through IPOs affects firm export performance in China, using regulatory approval outcomes as a natural experiment. The research finds that successful IPO applicants experience an annualized export increase of over 6% in the six years following approval compared to firms rejected at final review stages. Unlike debt financing, IPO access primarily expands the extensive margin of trade, enabling firms to enter more destination-product mar