IPO Market Conditions and Timing over the Long Run

2018 ◽  
pp. 174-198
Author(s):  
Chris Yung
Keyword(s):  
Supply Side ◽  
Time Varying ◽  
Demand Side ◽  
High Quality ◽  
Market Conditions ◽  
Full Sample ◽  
Public Firms ◽  
Long Run ◽  
Investment Opportunities ◽  
Entrepreneurial Decision

This chapter examines the determinants of IPO volume in four broad categories: (i) demand side, i.e. contemporaneous investment opportunities; (ii) supply side, reflecting time-varying entrepreneurial diversification incentives; (iii) time-varying overall mispricing; and (iv) strategic pooling of low quality issuers with high-quality issuers. Our evidence is inconsistent with the second and third channels. Time-varying risk does not appear to drive the entrepreneurial decision to go public. While IPOs offer low average returns, there is little evidence that they are mispriced relative to similar public firms, either in the full sample or in hot markets. Instead, IPOs tend to cluster when actors in the economy more broadly are behaving as if investment opportunities are robust.

scholarly journals Supply-Side and Demand-Side Cost Sharing in Health Care

1993 ◽  
Vol 7 (4) ◽  
pp. 135-151 ◽  
Author(s):  
Randall P Ellis ◽  
Thomas G McGuire
Keyword(s):  
Health Care ◽  
Cost Sharing ◽  
Health Care Services ◽  
Financial Risk ◽  
Supply And Demand ◽  
Supply Side ◽  
Demand Side ◽  
Health Care Demand ◽  
Financial Risk Protection ◽  
Long Run

In health markets, the price paid by insured consumers when health care services are demanded can be set separately from the price paid to providers when services are supplied. This fact suggests two alternate strategies for controlling the costs of health care: demand-side cost sharing, where patients must pay more in co-payments or deductibles, and supply-side cost sharing, which seeks to alter the incentives of health care workers to provide certain services. We review the rationale, limits, and comparative advantage of demand- and supply-side cost sharing in health care while primarily focusing on the short-run pursuit of consumer financial risk protection and efficiency. We then turn briefly to the long-run issue of technology adoption, as well as the how supply- and demand-side cost sharing may affect the fairness of the health system.

scholarly journals Bank Credit and Housing Prices in China: Evidence from a TVP-VAR Model with Stochastic Volatility

2018 ◽  
Vol 11 (4) ◽  
pp. 90 ◽  
Author(s):  
Xie He ◽  
Xiao-Jing Cai ◽  
Shigeyuki Hamori
Keyword(s):  
Stochastic Volatility ◽  
Housing Prices ◽  
Bank Credit ◽  
Var Model ◽  
Supply Side ◽  
Time Varying ◽  
Demand Side ◽  
Credit System ◽  
Dynamic Relationship ◽  
Time Varying Parameter

Housing prices in China have been rising rapidly in recent years, which is a cause for concern for China’s housing market. Does bank credit influence housing prices? If so, how? Will the housing prices affect the bank credit system if the market collapses? We aim to study the dynamic relationship between housing prices and bank credit in China from the second quarter of 2005 to the fourth quarter of 2017 by using a time-varying parameter vector autoregression (VAR) model with stochastic volatility. Furthermore, we study the relationships between housing prices and housing loans on the demand side and real estate development loans on the supply side, separately. Finally, we obtain several findings. First, the relationship between housing prices and bank credit shows significant time-varying features; second, the mutual effects of housing prices and bank credit vary between the demand side and supply side; third, influences of housing prices on all kinds of bank credit are stronger than influences in the opposite direction.

The interplay of welfare state policies with supply- and demand-side factors in the production of marginalised part-time employment among women in Germany

2019 ◽  
pp. 245-264
Author(s):  
Birgit Pfau-Effinger ◽  
Thordis Reimer
Keyword(s):  
Welfare State ◽  
Supply And Demand ◽  
Supply Side ◽  
Demand Side ◽  
Public Firms ◽  
Part Time ◽  
Marginal Employment ◽  
Employment Of Women ◽  
Using Data ◽  
Traditional Structures

In the early 2000s, Germany's Red-Green government introduced a new type of marginal employment in the form of 'Minijob' legislation. In the context of the dualisation strategy of the German welfare state, Minijob legislation has supported firms in extending the secondary segment of marginal jobs. However, Minijobs are associated with particularly low social security and high poverty risks, and these positions are primarily staffed by women. Therefore, the extension of the Minijob system has contributed to the persistence of traditional structures of gender inequality. This empirical study examines how demand and supply side factors interact with welfare state institutions and politics in the production of marginal employment of women in part-time jobs. Using data from the German Socio-Economic Panel, we used logistic regression to analyse women's risk of working in Minijobs based on family, educational, biographical and workplace characteristics. The research results identify both supply side and demand side factors as being significant in shaping a situation whereby married women with small children and lower levels of education who work in small, non-public firms are particularly exposed to the risks of marginal employment in Minijobs.

scholarly journals DAMPAK INFLASI TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA

2012 ◽  
Vol 1 (2) ◽  
pp. 123
Author(s):  
Doni Satria
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Inflation Rate ◽  
Output Growth ◽  
The Other ◽  
Annual Data ◽  
Supply Side ◽  
Demand Side ◽  
Long Run ◽  
Causality Relationship

The long run relationship between inflation and economic growth has been recognized by macroeconomist in the last three decades. For developing countries inflation effect on economic growth is more supply side phenomena than demand side or economic fluctuation (Basu, 2000). On the other hand stable and low inflation rate in the long run will promote higher output growth. I found significance two way causality between inflation and growth in Indonesia. The result has shown a non linier causality relationship from inflation to economic growth using Indonesian annual data from 1981 to 2010. The data reveals there is long run non linier relationship between inflation and growth.

scholarly journals The Fiscal Reaction Function and the Transmission Mechanism for Pakistan

2007 ◽  
Vol 46 (4II) ◽  
pp. 435-447 ◽  
Author(s):  
Mahmood Khalid ◽  
Wasim Shahid Malik ◽  
Abdul Sattar
Keyword(s):  
Monetary Policy ◽  
Side Effects ◽  
Fiscal Policy ◽  
Supply And Demand ◽  
New Keynesian ◽  
Supply Side ◽  
Demand Side ◽  
Long Run ◽  
Short Run ◽  
Macro Variables

Modern macroeconomics literature emphasises both the short run and long run objectives of fiscal policy [Romer (2006)]. In the short run it can be used to counter output cyclicality and/or stabilise volatility in macro variables, which is descriptively same as of effects of the short run monetary policy. Further for the long-run, fiscal policy can also affect both the demand and supply side of the economy. But in most traditional analyses it is assumed that fiscal policy would adjust to ensure the intertemporal budget constraint to be satisfied, while monetary policy is free to adjust its instruments [‘Ricardian Regime’ by Sargent (1982)] such as stock of money supply or the nominal interest rate [Walsh (2003)]. The debt financing methods, expenditure and tax powers of fiscal authorities i.e. the fiscal policy has also been seen as to affect both the supply and demand side of the economy. As noted by Baxter and King (1993), the initial Real Business Cycle models had only the supply side effects of the fiscal policy, where these were transmitted through the wealth effect and labourleisure choices of the household. Recently also New-Keynesian type models with micro-foundations and sticky prices argue that still through the supply side fiscal policy management could be accorded for stabilisation [Linnemann and Schabert (2003)]. The demand side effects of the fiscal policy could also be found only with more imperfections such as ‘Rule of Thumb’ consumers or those with liquidity constraints, which lead to exclusion of Ricardian equivalence [Gali, et al. (2005)]. But all that depends on the structure of the economy, as Blanchard and Perotti (2002) stated:

scholarly journals Socially Responsible Funds and Traditional Energy Commodities: A Diversification Perspective for Investments

2021 ◽  
Vol 9 ◽  
Author(s):  
Mobeen Ur Rehman ◽  
Muhammad Kashif ◽  
Nader Naifar ◽  
Syed Jawad Hussain Shahzad
Keyword(s):  
Spectral Analysis ◽  
Energy Market ◽  
Individual Investors ◽  
Socially Responsible ◽  
Market Conditions ◽  
Long Run ◽  
Investment Opportunities ◽  
Short Run ◽  
The Relationship ◽  
Daily Returns

Our work examines the relationship between socially responsible funds and the traditional energy market over daily returns data ranging from December 2015 to April 2019. We apply quantile cross-spectral analysis to measure returns correlation under different market conditions in the short, medium, and long run to measure the connectedness between both markets. Our results highlight that correlation based on different quantile distributions yields different investment opportunities. In the short run, investors can benefit from diversifying assets under extreme market conditions. No significant diversification opportunities are available in the medium- and long-run periods. Our findings provide implications for individual investors making investments under different horizons and dynamic market conditions.

scholarly journals WHAT DRIVES MICROFINANCE CREDIT DISBURSEMENT? AN EMPIRICAL EVIDENCE FROM INDONESIA’S RURAL BANKS (BPRs)

2018 ◽  
Vol 25 (2) ◽  
pp. 21-32
Author(s):  
Nika Pranata ◽  
Nurzanah Nurzanah
Keyword(s):  
Consumer Price Index ◽  
Small Enterprises ◽  
Supply Side ◽  
Demand Side ◽  
Monthly Data ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Micro And Small Enterprises

The paper investigates determinants of Indonesia’s microfinance credit disbursement, case taken from Indonesia’s rural banks (BPRs) which primarily focus on providing funding to the Micro and Small Enterprises (MSEs). The study applies Autoregressive Distributed Lag (ARDL) model by using monthly data over the period of January 2009 to January 2016. Result indicates that rural banks credit disbursement is more determined by demand side rather than supply side as variable representing demand side (production index) has significant effect to credit disbursement both long run and short run. In terms of supply side, the amount of credit disbursement is affected by interbank fund in the long run, whereas in the short run the significant variables are customer fund and internal fund. In addition, Consumer Price Index (CPI) and Non-Performing Loan (NPL) impose significant effect to the microfinance credit disbursement; yet, interestingly, interest rate is not a significant factor in microfinance’s case. 

Financial inclusion matters for economic growth in India

2019 ◽  
Vol 46 (1) ◽  
pp. 132-151 ◽  
Author(s):  
Dinabandhu Sethi ◽  
Susanta Kumar Sethy
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Financial Inclusion ◽  
Supply Side ◽  
Demand Side ◽  
Causality Test ◽  
Content Type ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Ardl Approach

Purpose The purpose of this paper is to examine the relationship between financial inclusion (FI) and economic growth in India. Design/methodology/approach To measure FI, a multidimensional time-varying index is proposed following the Human Development Index method. The long-run relationship between FI and economic growth is examined by using the autoregressive distributed lag (ARDL) approach to cointegration and nonlinear ARDL approach. Further, the direction of causality is investigated by employing the Toda–Yamamoto Granger causality test. Findings The linear cointegration test confirms a long-run relationship between FI and economic growth for India. The improvement in both demand-side and supply-side financial services has a positive impact on economic growth. These results suggest that India can attain long-run economic growth by improving the coverage of FI. However, there is no evidence of nonlinear cointegration, indicating that there is no asymmetric effect of FI on economic growth. Further, the causality test shows that FI granger causes economic growth but not vice versa. Research limitations/implications The major limitation of the study is the availability of time series data for all important variables. The index for both demand- and supply-side indicators can be extended with several other important variables in later date once the data are available for those variables. Practical implications As the study confirms that FI is one of the main drivers of economic growth, it is suggested that the policy maker emphasizing on financial sector reforms can enjoy economic growth in the long run, especially in developing countries. Therefore, the government and policy makers need to address the issues involved in access to financial services to spur economic growth. Originality/value The study examines the long-run relationship between FI and economic growth employing ARDL bound testing approach and nonlinear ARDL approach, separately for demand-side and supply-side indicators. Further, the study uses the Toda–Yamamoto granger causality to find the direction of causal flow between FI and economic growth.

Understanding Distressed Residential Transaction Discounts Across Price Segments and Market Conditions

2020 ◽  
Vol 42 (1) ◽  
pp. 151-182
Author(s):  
Ramya Rajajagadeesan Aroul ◽  
J. Andrew Hansz ◽  
Mauricio Rodriguez
Keyword(s):  
Transaction Costs ◽  
Time Varying ◽  
Market Segment ◽  
Market Conditions ◽  
Large Market ◽  
Space And Time ◽  
Wide Range ◽  
Time Periods ◽  
Market Areas

In the literature, there is a wide range of discounts associated with foreclosures. Comparisons across studies are difficult as they use different methodologies across large areas over different time periods. We employ a consistent methodology across space and time. We find modest discounts, within the range of typical transaction costs, in all but the highest priced market segment. Higher priced segments could explain prior findings of substantial discounts. We find that discounts are time-varying, with discounts increasing with market distress. A one-size-fits-all approach is not appropriate when estimating distressed transaction discounts across large market areas or under changing market conditions.

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