Firm characteristics and intellectual capital disclosure in IPO prospectuses

2015 ◽  
Vol 28 (4) ◽  
pp. 461-483 ◽  
Author(s):  
Leire Alcaniz ◽  
Fernando Gomez-Bezares ◽  
Jose Vicente Ugarte
Keyword(s):  
Initial Public Offerings ◽  
Latin American ◽  
Intellectual Capital ◽  
Design Methodology ◽  
High Tech ◽  
Firm Characteristics ◽  
Statistical Methodology ◽  
Anglo Saxon ◽  
Content Type ◽  
Public Offerings

Purpose Initial Public Offerings (IPOs) have been studied from different perspectives. The purpose of this paper is to analyse the type of intellectual capital (IC) information provided in the Spanish IPO prospectuses and the characteristics of the firms that go public and supply more information. The paper also compares the results with similar previous studies carried out in different countries. Design/methodology/approach The database gathers Spanish IPOs from 1996 to 2007 (after which the number of IPOs in Spain plummeted due to the crisis). Content analysis is used to obtain information about IC from the IPO prospectuses and, afterwards, the authors apply different statistical methods to analyse any relation between IC disclosure and firms’ characteristics. Findings The paper concludes that the companies that provide more information about IC in IPO prospectuses are high-tech companies, larger firms and those whose previous shareholders do not retain the majority after the IPO. Originality/value The authors have created an original database with the Spanish data. Moreover, this is the first study with these characteristics carried out in Spain, and some original conclusions are obtained, such as the importance of retained share percentage by previous shareholders. The authors have developed a statistical methodology suitable for the data. Both, the conclusions and the methodology will be especially useful for markets such as the Latin American ones, which are not as developed as Anglo-Saxon markets.

Exploring intellectual capital disclosure as a mediator for the relationship between IPO firm-specific characteristics and underpricing

2015 ◽  
Vol 16 (3) ◽  
pp. 639-660 ◽  
Author(s):  
Shaw Warn Too ◽  
Wan Fadzilah Wan Yusoff
Keyword(s):  
Initial Public Offerings ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Firm Characteristics ◽  
Content Type ◽  
Public Offerings ◽  
Intangible Resources ◽  
The Cost ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the direct and indirect impact of firm-specific characteristics on the level of underpricing among Malaysian initial public offerings (IPOs). Design/methodology/approach – Content analysis of IPO prospectuses was used for 331 firms underwent listing between 2002 and 2008. The extent of disclosure was computed by applying the disclosure index of Bukh et al. (2005). Findings – Of the five firm characteristics examined, there is a direct relationship between the firm’s financial performance and the level of foreign activity, and the level of underpricing, instead of being mediated through disclosure. However, some firm characteristics have direct influence on the extent of disclosure but do not have any influence on underpricing. Research limitations/implications – This empirical study concentrates on the Malaysian IPOs on a single disclosure mechanism. Other disclosure items can be examined together with the intellectual capital disclosure items. Practical implications – As the findings reveal that the extent of disclosure is relatively low in influencing the level of underpricing. Had the disclosure been higher, it may have some influence on underpricing. The accounting governance board need to regulate the disclosures of the intangible resources so that the level of underpricing can be minimized. Originality/value – This study provides new insight for the examination of direct and indirect (through disclosure) association between firm-specific characteristics and underpricing. The findings shed some lights to the IPO issuers to enhance disclosure so that the cost of capital can be reduced.

Early wealth effects of regional ADRs

2015 ◽  
Vol 11 (2) ◽  
pp. 198-214 ◽  
Author(s):  
Mark Schaub
Keyword(s):  
Initial Public Offerings ◽  
Latin American ◽  
Seasoned Equity Offerings ◽  
Wealth Effects ◽  
Equity Offerings ◽  
Short Term ◽  
Content Type ◽  
Public Offerings ◽  
Market Index ◽  
The Us

Purpose – The purpose of this paper is to determine what types of short-term wealth effects accrued to European and Latin American American Depository Receipt (ADR) investors and whether these were affected by the type of issue (initial public offerings (IPO) vs seasoned equity offerings (SEO)) or the date of issue (1990s vs 2000s). Design/methodology/approach – Standard ADR and IPO excess return methodology is utilized to compute and test excess returns against a US investment benchmark. This methodology is used in many ADR and IPO studies. Findings – European SEOs listed in the 2000s did better than those listed in the 1990s. The results for European IPOs were the opposite. Latin American SEOs did better relative to the US market index for issues listed in the 1990s as compared to those listed in the 2000s. Once again the results for Latin American IPOs were the opposite. Originality/value – This study differs from previous studies by emphasizing differences in short-term return behaviour for Latin American and European ADRs listed during a decade of US market stability (the 1990s) vs those listed in the 2000s when the US stock market encountered times of extreme return volatility. These timing differences affect not only the returns of all the ADRs but also show how ADR IPOs and SEOs tend to have opposite return behaviour based on timing. These return differences are important because the major benefits of portfolio diversification are achieved when asset returns are less correlated with each other.

UK FCA adopts changes to rules governing availability of information for IPOs

2018 ◽  
Vol 19 (2) ◽  
pp. 24-30
Author(s):  
Mark S. Bergman ◽  
John J. Satory ◽  
Sofia D. Martos
Keyword(s):  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Public Offerings ◽  
New Process ◽  
Practical Guidance ◽  
The Uk ◽  
Public Offering

Purpose This paper aims to summarize new disclosure and procedural rules and related guidance for initial public offerings in the UK that will become effective on July 1, 2018. Design/methodology/approach This study summarizes new disclosure and procedural rules and related guidance published by the Financial Conduct Authority intended to improve the quality and timeliness of key information made available to investors in advance of an initial public offering (IPO) in the UK, in particular the timing of the publication of IPO research by connected and unconnected analysts. Findings While it remains to be determined whether the new process will provide investors with more time to digest information about the issuer and its business and increase the likelihood that investors will place greater emphasis on the prospectus and less on research reports of connected analysts, at the very least, the publication of the prospectus or a registration document, rather than the intention to float announcement as is currently the case, will provide the first public confirmation that an IPO is imminent. Originality/value This study provides practical guidance from experienced securities and financial services lawyers.

The determinants of intellectual capital disclosure: a meta-analysis review

2015 ◽  
Vol 9 (3) ◽  
pp. 232-250 ◽  
Author(s):  
Chaabane Oussama Houssem Eddine ◽  
Shamsul Nahar Abdullah ◽  
Fatima Abdul Hamid ◽  
Dewan Mahboob Hossain
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Meta Analysis ◽  
Corporate Disclosure ◽  
Firm Characteristics ◽  
Systematic Analysis ◽  
Content Type ◽  
Industry Type ◽  
Analysis Technique ◽  
The Relationship

Purpose – The study aims to examine the relationship between the corporate disclosure on intellectual capital and five firm characteristics, namely, size, leverage, profitability, age and industry type. Design/methodology/approach – The research uses a meta-analysis technique by taking 19 articles published between 2003 and 2013. Thus, this study integrates and accumulates the findings of prior studies. Findings – The research finds a significant relationship between intellectual capital disclosure (ICD) and the independent variables: size, profitability and industry. Originality/value – This study provides a systematic overview of the determinants of ICD by using a meta-analysis approach. A systematic analysis is currently lacking in the ICD literature; hence, this study attempts to resolve the mixed findings of prior studies.

Going public in Mexico

2018 ◽  
Vol 31 (1) ◽  
pp. 156-176
Author(s):  
María de las Mercedes Adamúz ◽  
José Luis Rivas
Keyword(s):  
Initial Public Offerings ◽  
Design Methodology ◽  
Probit Model ◽  
International Literature ◽  
Market Conditions ◽  
Going Public ◽  
Public Companies ◽  
Content Type ◽  
Public Offerings ◽  
Private And Public

Purpose The purpose of this paper is to examine the factors that affect the likelihood of being public using a comprehensive database of private and public companies in Mexico, from all sectors, during 2006-2014. Design/methodology/approach The authors estimate a longitudinal probit model to identify the ex ante characteristics of public Mexican firms that differentiate them from those Mexican firms that continue to remain private. Findings The authors find that larger, younger and less levered Mexican firms are more likely to be public in Mexico. They additionally test the influence of market conditions and location on the probability of being public. They find that location matters but they find no evidence that initial public offerings (IPOs) are driven by favorable Mexican market conditions. Originality/value This paper contributes to the Mexican and international literature on IPOs because it uses an original database built from information of private and public Mexican firms. The study contributes to a better understanding of the determinants of the decision of going public in Mexico.

The new capital raised in IPOs

2017 ◽  
Vol 43 (9) ◽  
pp. 966-981 ◽  
Author(s):  
Chuntai Jin ◽  
Tianze Li ◽  
Steven Xiaofan Zheng ◽  
Ke Zhong
Keyword(s):  
Research And Development ◽  
Initial Public Offerings ◽  
Design Methodology ◽  
Capital Expenditure ◽  
Operating Performance ◽  
Working Capital ◽  
Content Type ◽  
Public Offerings ◽  
Regression Tests

Purpose The purpose of this paper is to answer the following three questions about the new capital raised in initial public offerings (IPOs): why do some IPO companies raise a lot of new capital while some others do not? Where do the IPO companies use the new capital they raise in IPOs? How does the use of new capital affect the operating performance of IPO companies? Design/methodology/approach Matching firm approach, univariate and regression tests. Findings This paper finds that companies with higher research and development (R&D) spending, higher capital expenditure, lower working capital and more long-term debt tend to raise more capital in IPOs. These firms also spend more on R&D and capital expenditure. The results also suggest that the more the new capital firms raise in IPOs, the lower operating performance they have in subsequent years. However, firms spending more new capital on R&D and capital expenditure seem to perform better. Originality/value These results help us understand the behavior of IPO firms.

scholarly journals Shariah-compliant status and IPO oversubscriptions

2018 ◽  
Vol 9 (4) ◽  
pp. 531-548 ◽  
Author(s):  
Ahmad Hakimi Tajuddin ◽  
Nur Adiana Hiau Abdullah ◽  
Kamarun Nisham Taufil Mohd
Keyword(s):  
Initial Public Offerings ◽  
Design Methodology ◽  
Content Type ◽  
Financial Ratio ◽  
Future Studies ◽  
Public Offerings ◽  
Quantile Regression Model ◽  
Early Performance ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to examine the impact of Shariah-compliant status on oversubscription of initial public offerings (IPOs) in Malaysia. It is believed that the Shariah-compliant status serves as a platform that sends a credible signal to investors which could possibly explain the IPO oversubscription anomaly. Design/methodology/approach This study used a multivariate and quantile regression model which involved 252 IPOs listed on Bursa Malaysia from 2005 to 2015. Findings The results show a significant positive relationship between Shariah-compliant status and oversubscription ratio, which suggests that companies with Shariah status could draw the attention of the investors. Strict guidelines and permissible elements of Shariah-compliant are considered agreeable and amicable by the investors. Research limitations/implications Future studies should look into financial ratio benchmark (cash and debt) for determining Shariah-compliant status to enhance the understanding of oversubscription of IPOs in Malaysia. Practical implications This study offers practical understanding to the issuers and underwriters on the factors that should be considered in assuring a good early performance of their issuance. Therefore, it will benefit the issuers and underwriters in managing and planning the IPO process carefully. Social implications The results of this study provide a new insight for investors regarding important information found in the prospectus when making the decisions to subscribe to IPOs. Originality/value This paper is one of the first to provide an empirical evidence of the impact of Shariah-compliant status on oversubscription in the IPO market.

Consumer value creation through WhatsApp use

2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  
Keyword(s):  
Latin American ◽  
Value Creation ◽  
Emotional Support ◽  
Design Methodology ◽  
Instant Messaging ◽  
Role Performance ◽  
Content Type ◽  
Consumer Value ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.

Towards a taxonomy of intergenerational knowledge transfer practices

2018 ◽  
Vol 25 (2) ◽  
pp. 81-91
Author(s):  
Kerstin Kuyken ◽  
Mehran Ebrahimi ◽  
Anne-Laure Saives
Keyword(s):  
Knowledge Transfer ◽  
Comparative Study ◽  
Design Methodology ◽  
Qualitative Case Study ◽  
High Tech ◽  
Content Type ◽  
Case Study Design ◽  
Younger Workers ◽  
Intergenerational Knowledge

Purpose This paper aims to develop a better understanding of intergenerational knowledge transfer (IKT) practices by adopting a context-related and comparative perspective. Design/methodology/approach A qualitative case study design involving 83 interviews and non-participative observation in German and Quebec organizations has been chosen. Findings Two distinctive archetypes of IKT emerge from both national contexts: “we-individualizing” (Germany) and “I-connecting” (Quebec), leading to an eightfold taxonomy of IKT practices. Research limitations/implications This research is limited to young and senior workers and to high-tech sectors. Originality/value Comparative and inductive study of IKT, adaptation of IKT practices to national contexts, retaining younger workers. This inductive and comparative study allows a better adaptation of IKT practices to national contexts and therefore a better retention of younger workers.

Lenovo’s successful acquisition of the IBM PC Division

2016 ◽  
Vol 32 (9) ◽  
pp. 32-35
Author(s):  
Mark Thomas
Keyword(s):  
Design Methodology ◽  
Chinese Economy ◽  
High Tech ◽  
Tablet Computers ◽  
Content Type ◽  
Us Economy ◽  
The Us ◽  
Pertinent Information ◽  
Traditional Manufacturing

Purpose The purpose of this paper is to analyze Lenovo’s successful acquisition of IBM’s PC division using Ghemawat’s (2001) CAGE framework. It was an acquisition that was so full of symbols that it is difficult to know where to begin. Lenovo’s purchase of IBM in 2005 was first seen as a sign of the rapid growth and expansion of the Chinese economy and its transformation away from the traditional manufacturing base to more high-tech areas. For doomsday merchants in the land of Uncle Sam, it foretold the end of the world domination of the US economy. Despite a considerable number of skeptics at the time, Lenovo was clearly up to the task. Such was the success of the acquisition that by 2015, Lenovo could claim to have grown into the world’s number 1 PC maker, number 3 smartphone manufacturer and number 3 in the production of tablet computers. Design/methodology/approach This paper is a case study. Findings Despite a considerable number of skeptics at the time, Lenovo was clearly up to the task. Such was the success of the acquisition that by 2015, Lenovo could claim to have grown into the world’s number 1 PC maker, number 3 smartphone manufacturer and number 3 in the production of tablet computers. Indeed, by 2014, the firm had enough confidence to add the IBM server business to its portfolio. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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