Acquiring financial resources from foreign equity capital markets: An examination of factors influencing foreign initial public offerings

2007 ◽  
Vol 22 (6) ◽  
pp. 833-851 ◽  
Author(s):  
Jani Hursti ◽  
Markku V.J. Maula
Keyword(s):  
Initial Public Offerings ◽  
Capital Markets ◽  
Equity Capital ◽  
Financial Resources ◽  
Public Offerings ◽  
Factors Influencing

Initial Public Offerings in the CMU

2018 ◽  
Author(s):  
Merritt B Fox
Keyword(s):  
Information Asymmetry ◽  
Initial Public Offerings ◽  
Capital Markets ◽  
Final Section ◽  
Public Offerings ◽  
Rating Agencies ◽  
Capital Markets Union ◽  
Preceding Discussion ◽  
Directors And Officers

This chapter begins by considering the especially severe information-asymmetry problem that plagues primary offerings of truly new securities. It then examines market-based solutions for these problems, the shortcomings of exclusive reliance on such solutions, and the rationale for having a government-designed affirmative-disclosure regime, whereby an issuer making an offering is required to answer certain questions. It also addresses the question of whether this regime should be imposed on all issuers making such offerings or only those that volunteer to be subjected to it. The remainder of the chapter considers the rationale for mandating the imposition of liability on issuers, issuer directors and officers, underwriters, dealers, and experts such as accountants or rating agencies when there have been material misstatements or material omissions of what was required to be disclosed. The final section briefly applies the preceding discussion to the efforts, as part of the Capital Markets Union, to increase the opportunities for European SMEs raise funds through public offerings.

INITIAL PUBLIC OFFERINGS AND PRE-IPO SHAREHOLDERS: ANGELS VERSUS VENTURE CAPITALISTS

2012 ◽  
Vol 17 (04) ◽  
pp. 1250022 ◽  
Author(s):  
WILLIAM C. JOHNSON ◽  
JEFFREY E. SOHL
Keyword(s):  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Early Stage ◽  
Equity Capital ◽  
Venture Capitalists ◽  
Public Offerings ◽  
Corporate Investors ◽  
Public Offering ◽  
Angel Investors

At the time of an initial public offering, shares in a firm are typically held by venture capitalists, insiders, corporate investors and angel investors. We examine the role of angel investors in the IPO process. We find that angel investors provide equity capital in industries venture capitalists are less likely to serve and that shareholders in angel backed IPO firms are more likely to sell their shares at the time of the offering. Where venture capital backed IPO firms have higher underpricing, angel backed IPO firms do not, implying that angels may be the preferred investors for early-stage firms.

scholarly journals Factors Influencing IPO Decisions. Do Corporate Managers Use Market and Corporate Timing? A Survey

2014 ◽  
Vol 42 (1) ◽  
pp. 30-39 ◽  
Author(s):  
Adam Szyszka
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Going Public ◽  
Public Offerings ◽  
Corporate Managers ◽  
Market Mispricing ◽  
Corporate Decisions ◽  
Factors Influencing ◽  
Warsaw Stock Exchange ◽  
Do So

Abstract This paper explores the motives for Initial Public Offerings (IPOs); that is, whether market mispricing or the behavioral inclinations of investors and analysts impact corporate decisions about rising equity, with a particular focus on market and corporate timing practices of managers going public. To do so, an anonymous survey was conducted of 166 managers of firms that recently went public at the Warsaw Stock Exchange in Poland (being the second most active IPO market in Europe, after London). The resulting data reveals that managers attempt to time bullish markets and good historical corporate financial results.

Wettbewerbsbeschränkungen auf Märkten für börsennotierte Aktien und Aktienderivate

2019 ◽  
Author(s):  
Hendrik Wessling
Keyword(s):  
Financial Markets ◽  
Initial Public Offerings ◽  
Capital Markets ◽  
Comprehensive Analysis ◽  
Antitrust Law ◽  
Market Manipulation ◽  
Public Offerings ◽  
Long Time ◽  
Damage Claims ◽  
The Relationship

For a long time, markets for listed stocks and listed stock derivatives have been regarded as immune to competition restrictions or distortions. This dissertation disproves this generally accepted theory and shows that numerous anticompetitive practices can and do occur in this segment of financial markets. Its comprehensive analysis includes market cornering, agreements that restrict supply in initial public offerings and instances of coordinated market manipulation. It considers the latest empirical findings relating to capital markets and, since it refers to the point at which antitrust law and capital markets law overlap, also examines the relationship between both legal fields. Using the example of coordinated market manipulation, the author ultimately analyses sanctions and damage claims arising from parallel violations of antitrust law and capital markets law.

scholarly journals Trends of non-financial corporations listed on Borsa Istanbul: Rethinking corporate ownership and governance under COVID-19

2020 ◽  
Vol 9 (3) ◽  
pp. 132-143
Author(s):  
Gonca Atici ◽  
Guner Gursoy
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Capital Markets ◽  
State Ownership ◽  
Corporate Ownership ◽  
Governance Mechanisms ◽  
Public Offerings ◽  
Corporate Governance Mechanisms ◽  
A Minor

The purpose of this study is to analyze trends of non-financial corporations listed on Borsa Istanbul (BIST) in terms of ownership structure for the period of 2002-2019. According to our findings, Turkish non-financial corporations reveal a concentrated nature as an example of family capitalism. Findings also reveal that initial public offerings are mainly from family-controlled corporations. This is noteworthy as corporations integrate more to the capital markets of Turkey. Besides, they get more disciplined as they subject to the regulations of the governing bodies and internalise corporate governance criteria. In terms of ownership mix, findings denote that non-financial corporations listed on BIST benefit from the advantages of conglomerates, cross-ownership, and foreign ownership in line with the literature. Contrary to several emerging economies, state-ownership has a minor share which renders strength and quality of governance level. The concentrated nature of corporations is believed to have a positive effect on governance mechanisms for controlling agency problems especially in the environment of uncertainty during COVID-19. Although Turkish capital markets have promising and progressing corporate governance mechanisms, steps to build up advanced digital governance mechanisms for the “digital new normal” should be taken as soon as possible.

The directs costs of A-REIT IPOs

2015 ◽  
Vol 33 (2) ◽  
pp. 196-204 ◽  
Author(s):  
Bill Dimovski
Keyword(s):  
Initial Public Offerings ◽  
Global Financial Crisis ◽  
Direct Costs ◽  
Real Estate Investment Trust ◽  
Content Type ◽  
Public Offerings ◽  
Factors Influencing ◽  
Using Data ◽  
The Cost ◽  
Practical Implications

Purpose – Direct costs of Australian Real Estate Investment Trust (A-REIT) initial public offerings (IPOs) were last reported in the literature using data to 2004. Much has occurred since then. The purpose of this paper is to introduce and include the A-REIT IPOs over the last ten years and examine the cost and the factors influencing the percentage underwriting and percentage total direct costs by A-REITs IPOs. The study also investigates specifically whether the utilization of an underwriter (who guarantees the success of the capital raising) rather than a stockbroker (who does not guarantee such success) costs significantly more. Design/methodology/approach – The study examines 87 A-REIT IPOs from January 1994 until December 2013. An OLS regression is performed to identify significant influencing factors on percentage underwriting costs and percentage total direct capital raising costs. Findings – The study finds that larger capital raisings and those with large investor or institutional involvement identified in the prospectus are significant in reducing underwriting costs. The study does not find that underwritten IPOs are significantly more expensive (or cheaper) than those not underwritten. Additionally, the size of the issue, whether the firm offers stapled securities (is internally managed) and has higher net asset to issue price characteristics reduces the total cost of underwritten IPOs. Practical implications – The paper provides information to new A-REIT issuers, underwriters and advisors broadly on new issue costs and on factors influencing the IPO issue costs. Originality/value – The study is the first to examine the costs of A-REIT IPO capital raising data in the years prior to and following the recent global financial crisis period.

scholarly journals Long-run performance of initial public offerings in the German stock market: The family business experience 1977 to 1998

2007 ◽  
Vol 4 (4) ◽  
pp. 357-396
Author(s):  
Jan Kuklinski ◽  
Dirk Schiereck
Keyword(s):  
Initial Public Offerings ◽  
Firm Value ◽  
Stock Price ◽  
Family Firms ◽  
Equity Capital ◽  
Public Offerings ◽  
Price Performance ◽  
Long Run ◽  
Neuer Markt ◽  
The Impact

This paper investigates the long-run performance of initial public offerings of 174 family firms floated in Germany between 1977 and 1998. Family businesses typically come closest to the ideal of non- separation of ownership from control. The fundamental change in ownership structure induced by the flotation represents a change in the governance of the firm as for the first time dispersed outsiders buy equity capital. An examination of the stock price performance allows drawing conclusions to explain the impact of governance changes on firm value. A prediction of stock price performance spans two theories: Advantages of modern corporations where management and ownership are separated are cut short by the so-called principal-agent problem. Managers – the agents – could take actions against the interest of shareholders – the principals. Agency problems in closely-held family firms should be less predominant. On the other hand, the rent-protection theory predicts that family owners have incentives to skim private benefits at the expense of firm performance. Depending on the extent of these two effects, family-owned firms should out-, respectively underperform the market. The empirical evidence seems to support the private benefit hypothesis: 3 years after the listing the market-adjusted return was on average –25.31% compared to a broad index. The underperformance increased to –53.50% after 60 months. Even when excluding potential new economy and Neuer Markt biases, the underperformance is a statistically significant –10.50% and –50.13%, respectively.

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