The stock market as a source of capital: Some lessons from initial public offerings in Italy

1996 ◽  
Vol 40 (3-5) ◽  
pp. 1057-1069 ◽  
Author(s):  
Marco Pagano ◽  
Fabio Panetta ◽  
Luigi Zingales
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Public Offerings

scholarly journals Pricing And Long-Run Performance Of The Venture-Backed And Nonventure-Backed IPOS

2011 ◽  
Vol 2 (6) ◽  
Author(s):  
Arvin Ghosh
Keyword(s):  
Stock Market ◽  
Venture Capital ◽  
Initial Public Offerings ◽  
Cash Flows ◽  
Venture Capitalists ◽  
Regression Equations ◽  
Public Offerings ◽  
Long Run ◽  
First Time ◽  
Prevalent Form

Initial Public Offerings (IPOs) were the most prevalent form to raise capital by firms wanting to go public during the last decade (1990 2000) in the United State. There were thousands of firms that went public for the first time, mostly in the technology-heavy NASDAQ stock market. Along with the regular IPOs came the IPOs backed by venture capitalists, who specialize in financing promising startup companies and bringing them public. As one-third of the IPOs were backed by venture capitalists during 1990 2000, our purpose here is to examine the pricing and long-run performance of the venture-backed and nonventure-backed IPOs that were issued in the NYSE and NASDAQ stock market during the period covered by our study. We have found, among others, that the venture-backed IPOs performed much better as compared to the nonventure-backed IPOs. The returns of the former were consistently higher than the latter during 1900 2000. Also, the price returns as well as the operating ratios and the growth of cash flows, were higher both in the NYSE and NASDAQ market. The regression equations also confirmed closer association with the independent variables belonging to the IPOs backed by venture capital than the non-venture capital.

Initial Public Offerings in Germany between 1997 and 2015

2018 ◽  
pp. 558-572
Author(s):  
Andreas Oehler ◽  
Tim Herberger ◽  
Matthias Horn
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Market Liquidity ◽  
Subprime Crisis ◽  
Market Returns ◽  
Stock Market Returns ◽  
Public Offerings ◽  
German Stock ◽  
German Stock Market ◽  
Dot Com

This chapter focuses on the German IPO market from 1997 to 2015. More specifically, it provides a descriptive overview of the IPO activities in Germany in the last two decades, and analyzes the IPO market’s dependence on the yearly return and turnover of the German stock market. It shows that most IPOs and highest volumes were observed during the dot-com bubble phase (1997–2000) and that the German IPO market’s liquidity shows a stable development in the last years after the subprime crisis. The results of the regression analyses show that the IPO market activity strongly depends on the overall stock market turnover. But the stock market returns play a subordinated role for the IPO market liquidity in Germany.

scholarly journals Speculative Prices and Popular Models

1990 ◽  
Vol 4 (2) ◽  
pp. 55-65 ◽  
Author(s):  
Robert J Shiller
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Rational Expectations ◽  
Survey Methods ◽  
Common Stock ◽  
Stock Market Crash ◽  
Public Offerings ◽  
True Model ◽  
Data Collection Effort ◽  
The U.S

The key idea of rational expectations models is to assume that people know (or behave as if they know) the true model that describes the economy. However, popular economic models (the models that are used by the broad masses of economic actors to form their expectations) are obviously not the same as those held by economists. This paper reports on data collection effort on popular models, using questionnaire survey methods, with the purpose of understanding speculative markets. I will report here on my research to understand the U.S. stock market crash of October 1987; research Fumiko Konya, Yoshiro Tsutsui, and I undertook to understand the Japanese stock market crash of October 1987; research Karl Case and I undertook to understand recent real estate booms; and research John Pound and I undertook to understand the periodic “hot” markets for initial public offerings (IPO's) of common stock.

Initial and After-market Performance of SME IPOs in India

2017 ◽  
Vol 18 (6) ◽  
pp. 1536-1551 ◽  
Author(s):  
Sanjay Dhamija ◽  
Ravinder Kumar Arora
Keyword(s):  
Multivariate Analysis ◽  
Stock Market ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Small And Medium Enterprises ◽  
Market Performance ◽  
Stock Exchanges ◽  
Public Offerings ◽  
Low Level ◽  
Medium Enterprises

This article examines the initial and after-market performance of the initial public offerings (IPOs) listed on the recently launched platform for small and medium enterprises (SMEs) by the Bombay Stock Exchange (BSE), Mumbai and the National Stock Exchange (NSE). The study does find evidence of underpricing of IPOs by SMEs in line with other studies internationally. However, the level of underpricing is found to be lower than that of IPOs listed on the main board stock exchanges in India, reported by earlier studies. This may be partially due to the fact that the SME platform is at an infancy stage and has failed to attract investors’ fancy. This is reflected in a low level of oversubscription of SME IPOs at 1.35 times on average. The multivariate analysis identifies the type of offer, size of issue, promoter holding, extent of oversubscription, lead manager prestige and the stock exchange of listing as the key determinants of underpricing of SME IPOs. Post listing, these IPOs have significantly out-performed the benchmark index. The finding is inconsistent with the results of other studies on the main board exchanges where the IPOs, in general, are found to underperform the markets over a significant period of time post listing. This may partly be attributed to thin trading in these stocks and, therefore, to their lower level of liquidity. The findings have significant implications for stock-market regulators, issuers and investors.

scholarly journals Board governance on dividend initiation by initial public offerings: Evidence from The Malaysian stock market

2020 ◽  
Vol 8 (1) ◽  
pp. 1761241
Author(s):  
Nizar Dwaikat ◽  
Abdelbaset Queiri ◽  
Ihab Sameer Qubbaj ◽  
Caroline Elliott
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Board Governance ◽  
Public Offerings

scholarly journals IPO Waves: How Market Performances Influence The Market Timing Of IPO?

2015 ◽  
Vol 31 (5) ◽  
pp. 1679
Author(s):  
Firas Batnini ◽  
Moez Hammami
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Market Timing ◽  
Autocorrelation Analysis ◽  
Market Returns ◽  
Stock Market Returns ◽  
Public Offerings ◽  
One Year ◽  
The Impact

The goal of this paper is to study the impact of stock markets on Initial Public Offerings (IPOs). Several studies have shown that the need for financing is not the main trigger for an IPOfavorable market conditions may play a more important part. This work prove the existence of a significate relationship between past stock market returns and the number of IPOs. Before setting the date for an IPO, managers analyze long term financial market yields, a bullish stock market over a six month/ one year period encourages IPOs activities. In the other hand, even a negative performance but over a two-year period may have the same effect. They expect a stock market inversion. These results were obtained by autocorrelation analysis and count regression.

The cyclical behavior of the IPO market: History and drivers

2021 ◽  
Vol 14 (2) ◽  
pp. 190-207
Author(s):  
Vladimir A. BELYAEV
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Market Dynamics ◽  
Positive Trend ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Public Offerings

Subject. The article considers the phenomenon of clustering in the initial public offering (IPO) market. Objectives. The aim is to perform a critical analysis of literature on the IPO market behavior and determine the optimal moment of company's listing on stock exchange. Methods. The study draws on analytical methods of information gathering and processing, as well as the comparative analysis. Results. The paper summarizes results of works by researchers on the IPO markets clustering, defines criteria for successful listing on stock exchange, unveils a number of factors affecting the market dynamics. It also determines possible ways and indicators to predict the onset of the "hot" market for initial public offerings. Conclusions. Macroeconomic factors and investor sentiment explain the clustering of IPO markets. Given that the waves in this market are of short-term nature, the macroeconomic performance is an inaccurate indicator, when predicting the onset of waves of initial public offerings, as opposed to investor sentiment. Indicators, like the reversal of the stock market from recession to growth, positive market dynamics for three months, and a period of low imputed volatility may serve as indicators of the imminent onset of a wave of initial public offerings. A successful IPO of a company operating in a particular industry may lead to an increase in the number of transactions of similar companies from this industry, provided that the stock market continues to show a positive trend during the period, which is necessary to get ready for an IPO.

Venture Capital, Angel Capital, and Other Finance, IPOs, and Acquisitions

2021 ◽  
pp. 353-369
Author(s):  
Lin Lin
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Venture Capital ◽  
Initial Public Offerings ◽  
Capital Market ◽  
Private Equity ◽  
Small Enterprises ◽  
Access To Finance ◽  
Entrepreneurial Ventures ◽  
Public Offerings

This chapter focuses on the development of non-bank financial institutions, particularly venture capital (VC), angel capital, private equity, and foreign funds, and their role in funding entrepreneurial ventures in China. It discusses the development of the venture capital market and the evolution of domestic and foreign funds in China. It examines the exits of VC-backed companies through initial public offerings (IPOs) and mergers and acquisitions and explores the connection between the stock market and VC market in China. It also evaluates recent institutional improvements and regulatory reforms for facilitating access to finance for small enterprises in China, especially the recent reforms to the stock market.

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