Restaurant firms’ IPO motivations and post-IPO performances

2019 ◽  
Vol 31 (9) ◽  
pp. 3484-3502
Author(s):  
Sung Gyun Mun ◽  
SooCheong (Shawn) Jang
Keyword(s):  
Going Public ◽  
Content Type ◽  
Ipo Performance ◽  
Financial Conditions ◽  
Short Period ◽  
Financing Costs ◽  
Restaurant Firms ◽  
Financial Burdens ◽  
A Minor

Purpose This study aims to identify why restaurant firms go public (IPO) despite high financing costs and which factors make firms stay public for the long term after an IPO. Also, this study aimed to link and compare restaurant firms’ pre- and post-IPO accounting information and how IPO proceeds were used. Design/methodology/approach This study used random-effects regression analysis with a number of dependent variables for a sample of 1,347 unbalanced panel data. In addition, logistic regression analyses were used to identify why restaurant firms were delisted within short periods after going public. Findings First, rebalancing financial structures was the most important reason for IPOs, whereas financing future growth was only a minor motivation. Second, post-IPO performance significantly differed between restaurant firms based on their pre-IPO financial conditions, as well as how they used IPO proceeds. Third, restaurant firms with low profitability, inefficient non-operating expenses and difficulties in generating revenue increased their financial burdens, which ultimately caused restaurant firms to be delisted within a short period after an IPO. Furthermore, the reasons for merging included cash shortages, large short-term liabilities and increased major operating expenses, together with increases in capital expenditures. Originality/value This study is unique, in that it explains the relationships between motivations for going public and post-IPO performances by directly linking the usages of IPO proceeds with firms’ operational performances. To the best of the authors’ knowledge, this study is the first to examine the effects of IPOs on restaurant firms’ operational, non-operational, investment and financial activities on firms’ performances.

“Understanding restaurant firms” debt-equity financing

2017 ◽  
Vol 29 (12) ◽  
pp. 3006-3022 ◽  
Author(s):  
Sung Gyun Mun ◽  
SooCheong (Shawn) Jang
Keyword(s):  
Fixed Effects ◽  
Financial Constraints ◽  
Debt Financing ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Equity Financing ◽  
Important Indicator ◽  
Content Type ◽  
Restaurant Firms

Purpose The purpose of this study was to extend the understanding of restaurant firms’ overall debt and equity financing practices by considering what drives equity financing. More importantly, this study attempted to identify whether an optimal financial leverage point exists in the relationship between debt financing and equity financing for restaurant firms. Design/methodology/approach This study used fixed-effects regression models with a sample of 1,549 unbalanced firm-year panel data to identify restaurant firms’ financial practices and the impacts of financial constraints. Findings First, restaurant firms tend to issue long-term debt to pay back existing debt. However, the amount of debt does not exactly match the debt’s maturity. Second, small restaurant firms’ net debt financing, as well as net equity financing, has an inverted-U-shaped relationship with financial leverage. Finally, the effect of financial leverage on external financing significantly differs between small and large restaurant firms. Practical implications Restaurant firms routinely use both debt and equity financing interchangeably to manage their financial constraints and target debt ratio. Further, firm size is an important indicator of financial constraints, while equity financing plays an important role in managing an optimal target debt ratio. Originality/value This study is unique in that it considers determinants of restaurant firms’ long-term debt financing as well as equity financing. This study also examines differences in long-term debt and equity financing practices between financially constrained and unconstrained firms.

scholarly journals Natural Competence Is a Major Mechanism for Horizontal DNA Transfer in the Oral Pathogen Porphyromonas gingivalis

mBio ◽  
2012 ◽  
Vol 3 (1) ◽  
Author(s):  
Gena D. Tribble ◽  
Todd W. Rigney ◽  
Doan-Hieu V. Dao ◽  
Cindy T. Wong ◽  
Jennifer E. Kerr ◽  
...  
Keyword(s):  
Porphyromonas Gingivalis ◽  
Dna Transfer ◽  
Extracellular Dna ◽  
Minor Role ◽  
Chromosomal Dna ◽  
Natural Competence ◽  
Content Type ◽  
A Minor ◽  
First Time

ABSTRACTPorphyromonas gingivalisis a Gram-negative anaerobe that resides exclusively in the human oral cavity. Long-term colonization byP. gingivalisrequires the bacteria to evade host immune responses while adapting to the changing host physiology and alterations in the composition of the oral microflora. The genetic diversity ofP. gingivalisappears to reflect the variability of its habitat; however, little is known about the molecular mechanisms generating this diversity. Previously, our research group established that chromosomal DNA transfer occurs betweenP. gingivalisstrains. In this study, we examine the role of putative DNA transfer genes in conjugation and transformation and demonstrate that natural competence mediated bycomFis the dominant form of chromosomal DNA transfer, with transfer by a conjugation-like mechanism playing a minor role. Our results reveal that natural competence mechanisms are present in multiple strains ofP. gingivalis, and DNA uptake is not sensitive to DNA source or modification status. Furthermore, extracellular DNA was observed for the first time inP. gingivalisbiofilms and is predicted to be the major DNA source for horizontal transfer and allelic exchange between strains. We propose that exchange of DNA in plaque biofilms by a transformation-like process is of major ecological importance in the survival and persistence ofP. gingivalisin the challenging oral environment.IMPORTANCEP. gingivaliscolonizes the oral cavities of humans worldwide. The long-term persistence of these bacteria can lead to the development of chronic periodontitis and host morbidity associated with tooth loss.P. gingivalisis a genetically diverse species, and this variability is believed to contribute to its successful colonization and survival in diverse human hosts, as well as evasion of host immune defenses and immunization strategies. We establish here that natural competence is the major driving force behindP. gingivalisDNA exchange and that conjugative DNA transfer plays a minor role. Furthermore, we reveal for the first time the presence of extracellular DNA inP. gingivalisbiofilms, which is most likely the source of DNA exchanged between strains within dental plaque. These studies expand our understanding of the mechanisms used by this important member of the human oral flora to transition its relationship with the host from a commensal to a pathogenic relationship.

The significance of unruptured intracranial saccular aneurysms

1987 ◽  
Vol 66 (1) ◽  
pp. 23-29 ◽  
Author(s):  
David O. Wiebers ◽  
Jack P. Whisnant ◽  
Thoralf M. Sundt ◽  
W. Michael O'Fallon
Keyword(s):  
Aneurysm Rupture ◽  
Content Type ◽  
Unruptured Aneurysms ◽  
Short Period ◽  
Long Term Follow Up ◽  
The Mean ◽  
Low Probability ◽  
Saccular Aneurysms

✓ The authors report the results of a long-term follow-up study of 130 patients with 161 unruptured intracranial saccular aneurysms. Their findings suggest that unruptured saccular aneurysms less than 10 mm in diameter have a very low probability of subsequent rupture; The mean diameter of the aneurysms that subsequently ruptured was 21.3 mm, compared with a diameter of 7.5 mm for aneurysms defined after rupture at the same institution. Part of the explanation for this discrepancy may be that the size of the filling compartment of the aneurysm decreases after rupture. There is also evidence from the present study that intracranial saccular aneurysms develop with increasing age of the patient and stabilize over a relatively short period, if they do not initially rupture, and that the likelihood of subsequent rupture decreases considerably if the initial stabilized size is less than 10 mm in diameter. Consequently, the critical size for aneurysm rupture is likely to be smaller if rupture occurs at the time of or soon after aneurysm formation. There seems to be a substantial difference in potential for growth and rupture between previously ruptured and unruptured aneurysms.

scholarly journals Ribosome hibernation: a new molecular framework for targeting nonreplicating persisters of mycobacteria

Microbiology ◽  
2021 ◽  
Vol 167 (2) ◽  
Author(s):  
Yunlong Li ◽  
Manjuli R. Sharma ◽  
Ravi K. Koripella ◽  
Nilesh K. Banavali ◽  
Rajendra K. Agrawal ◽  
...  
Keyword(s):  
Mycobacterium Tuberculosis ◽  
Type Species ◽  
Drug Regimen ◽  
Content Type ◽  
Link Type ◽  
A Minor ◽  
Molecular Framework

Treatment of tuberculosis requires a multi-drug regimen administered for at least 6 months. The long-term chemotherapy is attributed in part to a minor subpopulation of nonreplicating Mycobacterium tuberculosis cells that exhibit phenotypic tolerance to antibiotics. The origins of these cells in infected hosts remain unclear. Here we discuss some recent evidence supporting the hypothesis that hibernation of ribosomes in M. tuberculosis, induced by zinc starvation, could be one of the primary mechanisms driving the development of nonreplicating persisters in hosts. We further analyse inconsistencies in previously reported studies to clarify the molecular principles underlying mycobacterial ribosome hibernation.

scholarly journals Is Window-Dressing around Going Public Beneficial? Evidence from Poland

2019 ◽  
Vol 12 (1) ◽  
pp. 18 ◽  
Author(s):  
Joanna Lizińska ◽  
Leszek Czapiewski
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offerings ◽  
Going Public ◽  
Financial Reports ◽  
Public Offerings ◽  
Ipo Performance ◽  
Company Value ◽  
The Difference

The informativeness of financial reports has been of a great importance to both investors and academics. Earnings are crucial for evaluating future prospects and determining company value, especially around milestone events such as initial public offerings (IPO). If investors are misled by manipulated earnings, they could pay too high a price and suffer losses in the long-term when prices adjust to real value. We provide new evidence on the relationship between earnings management and the long-term performance of IPOs as we test the issue with a methodology that has not been applied so far for issues in Poland. We use a set of proxies of earnings management and test the long-term IPO performance under several factor models (CAPM, and three extensions of the Fama-French model). Aggressive IPOs perform very poorly later and earn severe negative stock returns up to three years after going public. The difference in returns in accrual quantiles is statistically significant in almost half of methodology settings. The results seem to suggest that investors might not be able to discount pre-IPO abnormal accruals and could be overoptimistic. Once the true earnings performance is revealed over time, the market makes downward price corrections.

Long-term efficacy of microvascular decompression in trigeminal neuralgia

1988 ◽  
Vol 69 (1) ◽  
pp. 35-38 ◽  
Author(s):  
Kim J. Burchiel ◽  
Hadley Clarke ◽  
Michael Haglund ◽  
John D. Loeser
Keyword(s):  
Trigeminal Neuralgia ◽  
Microvascular Decompression ◽  
Statistical Relationship ◽  
Average Period ◽  
Content Type ◽  
Neuralgic Pain ◽  
A Minor ◽  
Bone Structures ◽  
Postoperative Interval

✓ Forty patients were followed for an average period of 8½ years after 44 consecutive suboccipital craniotomies for trigeminal neuralgia. Among these patients, 36 had microvascular decompression (MVD) of the nerve, four had repeat trigeminal rhizotomy after MVD was not successful in controlling their pain, and four had primary trigeminal rhizotomies. Of the 36 patients undergoing MVD, 17 (47%) experienced recurrent postoperative neuralgic pain: in 11 (31%) pain recurrence was major, and in six (17%) it was minor. Among the eight patients undergoing rhizotomy, four (50%) had major pain recurrences and one (13%) had a minor recurrence, for a 63% total recurrence rate. There was a strong statistical relationship between an operative finding of arterial cross-compression of the nerve and long-term complete pain relief. Patients with other compressive pathology (related to veins or bone structures) did not on the average fare as well. Despite this, there appeared to be no point in time in the postoperative interval when the patient could be considered “cured.” Major recurrences averaged 3.5% annually, and minor recurrences averaged 1.5% annually. The implications of these findings for the treatment of trigeminal neuralgia and the current understanding of the mechanism of MVD for this disorder are discussed.

scholarly journals Essential Role of Invasin for Colonization and Persistence of Yersinia enterocolitica in Its Natural Reservoir Host, the Pig

2013 ◽  
Vol 82 (3) ◽  
pp. 960-969 ◽  
Author(s):  
Julia Schaake ◽  
Anna Drees ◽  
Petra Grüning ◽  
Frank Uliczka ◽  
Fabio Pisano ◽  
...  
Keyword(s):  
Yersinia Enterocolitica ◽  
Reservoir Host ◽  
Infection Model ◽  
Minor Effect ◽  
Primary Role ◽  
Pathogenic Potential ◽  
Content Type ◽  
A Minor

ABSTRACTIn this study, an oral minipig infection model was established to investigate the pathogenicity ofYersinia enterocoliticabioserotype 4/O:3. O:3 strains are highly prevalent in pigs, which are usually symptomless carriers, and they represent the most common cause of human yersiniosis. To assess the pathogenic potential of the O:3 serotype, we compared the colonization properties ofY. enterocoliticaO:3 with O:8, a highly mouse-virulentY. enterocoliticaserotype, in minipigs and mice. We found that O:3 is a significantly better colonizer of swine than is O:8. Coinfection studies with O:3 mutant strains demonstrated that small variations within the O:3 genome leading to higher amounts of the primary adhesion factor invasin (InvA) improved colonization and/or survival of this serotype in swine but had only a minor effect on the colonization of mice. We further demonstrated that a deletion of theinvAgene abolished long-term colonization in the pigs. Our results indicate a primary role for invasin in naturally occurringY. enterocoliticaO:3 infections in pigs and reveal a higher adaptation of O:3 than O:8 strains to their natural pig reservoir host.

Examining the determinants of long-term debt in the US restaurant industry

2017 ◽  
Vol 29 (5) ◽  
pp. 1501-1520 ◽  
Author(s):  
Kwanglim Seo ◽  
Ellen Eun Kyoo Kim ◽  
Amit Sharma
Keyword(s):  
Cash Flow ◽  
Boards Of Directors ◽  
Restaurant Industry ◽  
Growth Opportunities ◽  
Content Type ◽  
Financing Decisions ◽  
The Us ◽  
Restaurant Firms ◽  
The Impact

Purpose This paper aims to find alternative explanations for the use of long-term debt in the US restaurant industry from a behavioral perspective. The three-fold purpose of the present study is to examine the impact of CEO overconfidence on the use of long-term debt; explore how CEO overconfidence moderates the relationship between growth opportunities and long-term debt; and analyze the moderating role of CEO overconfidence based on cash flow levels in the context of the restaurant industry. Design/methodology/approach Using a sample of publicly traded US restaurant firms between 1992 and 2015, this study used generalized methods of moments with instrumental variable technique to analyze the panel data. Findings The findings of this study highlight the importance of considering behavioral traits of CEOs, such as overconfidence to better understand the US restaurant firms’ financing behaviors. This study found that overconfident CEOs tend to use more long-term debt when firms have greater growth opportunities and low cash flow. Practical implications Given that psychological and behavioral features of CEOs are critical in understanding the variations in corporate financing decisions and capital structure, shareholders and boards of directors of growth-seeking restaurant firms should incorporate the behavioral aspects of overconfident CEOs in the design of long-term debt contracts to mitigate liquidation risk while developing compensation practices that encourage overconfident CEOs to finance growth. Originality/value Despite its heavy reliance on long-term debt in the US hospitality industry, prior studies provided mixed findings for the determinants of long-term debt. This study makes a contribution to the literature by offering alternative approaches to examining long-term debt decisions among US restaurant firms.

Managerial ability, growth opportunities, and IPO performance

2017 ◽  
Vol 43 (4) ◽  
pp. 488-507 ◽  
Author(s):  
Justin S. Cox
Keyword(s):  
Initial Public Offerings ◽  
Operating Performance ◽  
Managerial Ability ◽  
Growth Opportunities ◽  
Single Class ◽  
Content Type ◽  
Ipo Performance ◽  
Dual Class ◽  
Managerial Quality

Purpose The purpose of this paper is to explain whether the level of managerial quality and growth opportunities influences the operating and return performance between single and dual class IPOs. Design/methodology/approach The sample includes 281 initial public offerings under a dual class share structure. This paper measures managerial ability using a score method design produced by (Demerjian et al., 2012). This paper follows (Chemmanur et al., 2011) in measuring post-IPO operating performance between dual and single-class firms. This paper follows Lyon et al. (1999) and Chemmanur et al. (2011) in measuring long-term post-IPO buy-and-hold return performance. This paper employs two measures of growth/investment using Tobin’s q and expenditures such as capital, research and development, and selling, general and administrative scaled to total assets (Daniel et al., 2016). Findings Firms with high-quality managers experience more underpricing than low-quality managers. Likewise, dual class firms of all manager and growth types hold less cash and leverage. Using Tobin’s q as a proxy for growth, dual class firms experience higher post-IPO operating performance regardless of managerial quality. Furthermore, the findings indicate minimal evidence that dual class firms underperform single-class IPOs, lending minimal support for the managerial entrenchment hypothesis. Originality/value This paper is the first to partition dual and single-class IPOs based on managerial quality and growth opportunities to test long-term differences in operating and return performance.

scholarly journals Accounting for modern slavery risk in the time of COVID-19: challenges and opportunities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Katherine Leanne Christ ◽  
Roger Leonard Burritt
Keyword(s):  
Future Research ◽  
Content Type ◽  
Modern Slavery ◽  
Short Period ◽  
External Stakeholders ◽  
Challenges And Opportunities ◽  
External Reporting ◽  
Numeric Data ◽  
Gathering Data

PurposeThe purpose of this paper is to examine how the coronavirus disease 2019 (COVID-19) pandemic affects corporate modern slavery accounting, auditing and accountability, and how a business can take advantage of this situation to ensure a more robust and effective modern slavery response in the long-term.Design/methodology/approachDrawing on recent literature and available statistics about modern slavery in the context of COVID-19 comment is provided on the challenges and opportunities for researchers and business.FindingsGiven the additional invisibility of modern slavery in a COVID-19 environment as victims move into unemployment and back into vulnerable positions where they are exploited the challenge is how accounting, auditing and accountability can help business break this cycle. Capabilities for business to track and trace victims of modern slavery will be reduced because of the pandemic. Opportunities exist for gathering data and building internal awareness about the problem of modern slavery in supply chains and to reassess operational risk and investment in modern slavery reduction. With the pause in external reporting opportunity exists to obtain views of external stakeholders.Research limitations/implicationsBecause of the relatively short period of the COVID-19 pandemic to date, numeric data on impacts are largely unavailable.Originality/valueThis is the first paper to consider the challenges and opportunities of COVID-19 on accounting for modern slavery in business. Directions for future research are also considered.

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