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.

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.

New trends in intellectual capital reporting

2018 ◽  
Vol 19 (4) ◽  
pp. 814-835 ◽  
Author(s):  
Francesca Manes Rossi ◽  
Giuseppe Nicolò ◽  
Paolo Tartaglia Polcini
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Information Needs ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
University System ◽  
Content Type ◽  
Explanatory Factors ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to explore a new way to disclose intellectual capital (IC) in universities through their websites. Going beyond traditional tools used for intellectual capital disclosure (ICD), this study aims at identifying possible determinants of ICD via the web. Design/methodology/approach This paper analyses the institutional websites of a sample of Italian universities adapting the theoretical framework developed by Low et al. (2015) to the peculiarities of the Italian university system. Moreover, the relationship between certain explanatory factors identified in previous research and the extent of online ICD represented by two disclosure indexes was tested through an ordinary least squares regression model. Findings The analysis reveals the extensive use of ICD via websites, especially regarding human and internal capital, while the disclosure of external capital through this means is still limited. Internationality and online visibility both positively affect the extent of a university’s ICD. Research limitations/implications The paper represents the first study investigating online ICD and its determinants in universities, contributing new knowledge to help answer the how and what of the matter. Practical implications The results can serve as encouragement to university managers to enhance online ICD to meet the information needs of a wider audience. Originality/value This is the first study to provide evidence about online ICD in universities and to reveal some of the possible determinants to improve this disclosure.

The relationship between intellectual capital and big data: a review

2018 ◽  
Vol 26 (3) ◽  
pp. 361-380 ◽  
Author(s):  
Federica De Santis ◽  
Claudia Presti
Keyword(s):  
Big Data ◽  
Intellectual Capital ◽  
Value Creation ◽  
Design Methodology ◽  
Content Type ◽  
A Value ◽  
Starting Point ◽  
The Relationship ◽  
Practical Implications ◽  
Decision Making Tool

PurposeThis paper aims to give an integrated framework for analysing the main opportunities and threats related to the exploitation of Big Data (BD) technologies within intellectual capital (IC) management.Design/methodology/approachBy means of a structured literature review (SLR) of the extant literature on BD and IC, the study identified distinctive opportunities and challenges of BD technologies and related them to the traditional dimensions of IC.FindingsThe advent of BD has not radically changed the risks and opportunities of IC management already highlighted in previous literature. However, it has significantly amplified their magnitude and the speed with which they manifest themselves. Thus, a revision of the traditional managerial solutions needed to face them is required.Research limitations/implicationsThe developed framework can contribute to academic discourse on BD and IC as a starting point to understanding how BD can be turned into intangible assets from a value creation perspective.Practical implicationsThe framework can also represent a useful decision-making tool for practitioners in identifying and evaluating the main opportunities and threats of an investment in BD technologies for IC management.Originality/valueThe paper responds to the call for more research on the integration of BD discourse in the fourth stage of IC research. It intends to improve this understanding of how BD technologies can be exploited to create value from an IC perspective, focussing not only on the potential of BD for creating value but also on the challenges that it poses to organizations.

Determinants of retail store network expansion via shop-in-shops

2018 ◽  
Vol 46 (10) ◽  
pp. 915-943
Author(s):  
Karine Picot-Coupey ◽  
Jean-Laurent Viviani ◽  
Paul Amadieu
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Comprehensive Understanding ◽  
Content Type ◽  
Expansion Strategy ◽  
Network Expansion ◽  
Intangible Resources ◽  
Retail Company ◽  
Positive Effect ◽  
Practical Implications

PurposeWhy do some retail networks operate shop-in-shops along with stand-alone units while others do not? Drawing on a resource-based and intellectual capital (IC) perspective as a broad theoretical lens, the purpose of this paper is to focus on retailer-run shop-in-shops and examine the determinants of their adoption.Design/methodology/approachTo gain a comprehensive understanding of shop-in-shop adoption by retail branded networks, a research design mixing a quantitative study (n= 170) and a qualitative study (n= 19) was adopted to test nine hypotheses regarding these determinants of the adoption of retailer-run shop-in-shops and explore in greater depth the processes whereby they actually occur.FindingsThe main findings show that intangible resources are major determinants of the choice to operate shop-in-shops while tangible resources are minor determinants. The more robust results of the analysis lie in the positive effect of own-label merchandise range, premium pricing strategy, positioning based on symbols, retail concept fast renewal and high sector specialisation on the choice to operate a shop-in-shop. The effect of financial constraints on the decision to expand via shop-in-shops is limited.Research limitations/implicationsThe authors emphasise the importance of marketing-related and company-related characteristics in differentiating the likelihood of retail networks to expand via shop-in-shops. These results lend support to the relevance of a resource-based and IC perspective in explaining the propensity of retailers to develop via shop-in-shops.Practical implicationsThe decision to operate shop-in-shops should depend on the extent to which intangible resources – the most important being retail positioning grounded in symbols, an own-label merchandise range, and a high retail branded network reputation – can be valued and enhanced. Expanding a retail network via shop-in-shops does not appear to be a financially constrained expansion strategy: it must be considered as a relevant first best strategy when an independent and young retail company has intangible resources to value but limited tangible resources.Originality/valueThe study contributes to channel management and retailing research in four ways. First, it precisely delineates the specific characteristics of shop-in-shops. Second, it provides theoretical explanations – based on a resource and IC perspective – of determinants that influence the choice of shop-in-shops. Third, it empirically tests the influence of marketing-related and company-related characteristics when adopting shop-in-shops. Fourth, it provides insights into how adopting shop-in-shops. To the authors’ knowledge, the research is on the first to analyse theoretically and test the determinants for the choice of retailer-run shop-in-shops.

Underwriter reputation and IPO valuation in an emerging market: evidence from Malaysia

2020 ◽  
Vol 46 (10) ◽  
pp. 1283-1304 ◽  
Author(s):  
Chui Zi Ong ◽  
Rasidah Mohd-Rashid ◽  
Kamarun Nisham Taufil-Mohd
Keyword(s):  
Initial Public Offerings ◽  
Intrinsic Value ◽  
Emerging Market ◽  
Cross Sectional ◽  
Content Type ◽  
Public Offerings ◽  
Underwriter Reputation ◽  
The Cost ◽  
The Relationship

PurposeThe purpose of this study is to examine the influence of underwriter reputation on the valuation of Malaysian initial public offerings (IPOs).Design/methodology/approachThis study employed cross-sectional multiple regression models to analyse the relationship between underwriter reputation and IPO valuation that included 466 IPOs listed on Bursa Malaysia from 2000 to 2017.FindingsThe results revealed that underwriter reputation had a significant negative association with IPO valuation. Firms that engaged the services of reputable underwriters had their IPO offer prices set lower than the intrinsic values during the listing. After incorporating firms' size, this study found a positive relationship between underwriter reputation and IPO valuation. Big firms (high quality) hired reputable underwriters for certification purposes as issuers were aware that the cost of hiring a reputable underwriter would be justified by increased transparency after listing. Therefore, firms that engaged reputable underwriters had approximately fair values since issuers assumed that the price would be close to the intrinsic value following enhanced transparency post-listing.Research limitations/implicationsFuture studies should focus on other non-financial factors, such as auditor reputation.Originality/valueThe present study provides new insights into the certification role of underwriters in valuing IPOs in the Malaysian market.

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.

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 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.

scholarly journals “Happy slaves”? The adaptation problem and identity politics in the writings of Amartya Sen

2016 ◽  
Vol 43 (12) ◽  
pp. 1178-1193
Author(s):  
Tony Burns
Keyword(s):  
Identity Politics ◽  
Design Methodology ◽  
Conceptual Analysis ◽  
Practical Implication ◽  
Methodological Approach ◽  
Mary Wollstonecraft ◽  
Amartya Sen ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between Amartya Sen’s notion of adaptation and his views on identity politics by focussing on the issue of slavery and, more specifically, on the example of the happy or contented slave. Design/methodology/approach The paper is text based. The methodological approach adopted is that of conceptual analysis, as is typical for work of this kind. Findings The paper concludes that the example of the happy or contented slave is indeed a fruitful one for those interested in exploring the relationship between Sen’s views on “the adaptation problem” and his views on identity politics, especially in relation to the subjection of women. Here Sen’s debt to the ideas of Mary Wollstonecraft and John Stuart Mill is particularly important. Research limitations/implications One implication of the argument of the paper is that there is a need to consider more carefully the differences that exist between the views of Wollstonecraft and Mill, so far as the example of the happy or contented slave is concerned. Practical implications One practical implication of the paper is that, hopefully, it establishes the continued relevance of the ideas of thinkers such as Wollstonecraft and Mill today, not least because of the influence that they have had on theoreticians such as Amartya Sen. Social implications The paper addresses issues which are of considerable social and political significance, especially for women in underdeveloped societies today. Originality/value The example of the happy or contented slave has not received much discussion in the literature on Sen, although Sen himself has suggested that the distinction between happiness and contentment is an important one, which does merit further discussion.

Analysis of visual impression based on Bra's basic components

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xingyu Wen ◽  
Jing Zhang ◽  
Mincheol Whang ◽  
Kaixuan Liu
Keyword(s):  
Design Methodology ◽  
Theoretical Method ◽  
Visual Design ◽  
Visual Features ◽  
Content Type ◽  
Visual Impression ◽  
Questionnaire Online ◽  
Design Idea ◽  
The Relationship ◽  
Practical Implications

PurposeThe purpose of this paper is to discuss the relationship between bra's visual impression and bra parts, and then to explore the application of visual impression in bra design.Design/methodology/approachFirstly, 82 female undergraduates are asked to answered this questionnaire online, which is about the importance of parts in bra design. In the part of data analysis, the method of principal part analysis (PCA) are used to get the relationship between bra's parts, and reduce dimension of factors that influence bra design. After that, those group of features are further discussed from the perspective of visual design. Finally, design an application based on conclusion.FindingsTo get the influence features of bra appearance and improve the visual design effect, this paper matches the bra parts with visual features (color, texture, shape and space) and presents four main features of bra design: “color,” “visual texture,” “design shape” and “spatial expression” together with corresponding bra parts and technique of expression. Moreover, user interface in bra cloud customization is designed.Practical implicationsThe conclusion, which shows the corresponding relationship between bra visual effect and its basic parts, has an important role in bra visual design. First, it can be useful for design idea with different technique of expression, which may supply a theoretical basis for design. Secondly, the combination of bra parts and visual features can be used to evaluate the appearance.Originality/valueDiscussing the bra visual impression based on bra's basic parts and visual features provides a theoretical method for bra design and its appearance evaluation.

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