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.

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.

Do sponsors and democratic government influence the flipping activity of Pakistan IPO? Evidence from developing market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayesha Anwar ◽  
Rasidah Mohd-Rashid ◽  
Norliza Che Yahya ◽  
Chui Zi Ong
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Accurate Information ◽  
Cross Sectional ◽  
Content Type ◽  
Democratic Government ◽  
Public Offerings ◽  
Trading Volumes ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the impact of sponsors and democratic government on the flipping activity of initial public offerings (IPOs). Design/methodology/approach Based on the sample of 95 IPOs listed on the Pakistan Stock Exchange between January 2000 and December 2019, this study used multiple cross-sectional regression to examine the relationship between sponsors and democratic government on flipping activity. Findings The findings indicate a significant negative association between sponsors and the flipping activity of IPOs. Sponsor(s) signal quality by trying to share accurate information about company values. As a result, the confidence of rational investors in the company’s future prospectus increases and they hold their shares for future gains, which reduces the flipping activity. Also, democratic government, along with sponsors' participation, provides investors with liquidity immediately after listing. Practical limitations/implications The findings of this study have implications for investors as they may assist them make informed decisions about whether or not to invest in an IPO with high sponsor(s) ownership. In addition, issuers should consider the disclosure of sponsor information(s) as such information may directly affect the first day’s trading volumes. Originality/value To the best of the authors’ knowledge, this is the first research study that explores the correlation between sponsors and democratic government and flipping activity of IPO. This study is important for investors and issuers.

The role of rash-impulsivity, emotional dysregulation and reward drive in comorbid disordered eating and substance use disorders

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natalie Merinuk ◽  
Stephanie C. Varcoe ◽  
Peter J. Kelly ◽  
Laura D. Robinson
Keyword(s):  
Substance Use ◽  
Disordered Eating ◽  
Psychological Factors ◽  
Emotional Dysregulation ◽  
Self Report ◽  
Eating Behaviours ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship

Purpose Substance use disorder (SUD) frequently co-occurs with other psychological conditions, such as eating disorders (EDs). Psychological factors such as emotional dysregulation, rash impulsivity (RI) and reward sensitivity (RS) play a role in the etiology of each disorder, yet little is known about the combined effects of these on comorbid SUDs and EDs or disordered eating behaviours (DEBs). This study aims to examine the role of these psychological factors in comorbid DEBs and SUDs among individuals in treatment for SUDs. The role of gender is tested as a moderator. Design/methodology/approach A cross-sectional self-report survey was completed by 131 participants attending Australian residential substance use treatment centres. A binomial logistic regression analysis was performed to examine the effects of emotional dysregulation, RI and RS on comorbid DEB and SUD. Further, moderation analyses were used to examine the moderating effect for gender on the relationship between these three personality variables and comorbidity. Findings The most commonly reported primary substance of use was alcohol (43.5%), followed by amphetamines (38.6%). Findings showed that emotional dysregulation and RI were significantly related to an increase in comorbidity likelihood; however, RS was not. Gender moderated the relationship between comorbidity and RI only. Originality/value The significant positive relationship found between RI and comorbidity for females only was a novel finding for the current study. Further research is needed to develop an understanding of the etiology of comorbidity.

Performance of Ghanaian women businesses community: the moderating role of social competence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cynthia Ayorkor Sallah ◽  
Livingstone Divine Caesar
Keyword(s):  
Social Competence ◽  
Women Entrepreneurs ◽  
Emerging Market ◽  
Second Phase ◽  
Business Growth ◽  
Content Type ◽  
Intangible Resources ◽  
The Relationship ◽  
Moderating Role

Purpose This paper aims to investigate the moderating dynamics of social competence in the relationship between intangible resources and the performance of women businesses from an emerging market context. Developed economy literature provides ample evidence of a positive relationship between intangible resources and the performance of women business ventures. Little is known of the complexity of this orthodoxy in developing markets such as Ghana. In particular, this paper investigates the moderating role of social competence in the relationship between intangible resources available to women entrepreneurs and performance. Design methodology approach An exploratory sequential mixed method research design was used. First phase involved qualitative data collected through interviews, and the second phase was quantitative data collected from 264 participants. Content analysis and multiple regression analysis were used. Findings Social competence is important to the success of women businesses as it influences the outcome of entrepreneurial interactions and communications. Also, it positively moderated the relationship between organisational reputational capital (RC) and women business growth. On the flip side, it negatively moderated the relationship between human capital, social capital, individual RC and women business growth. Practical implications To sustainably grow their businesses, women entrepreneurs must ascertain the right level of social competence needed. The utilization of social competence at higher rather than lower levels could mean more costs and more training for which the business may not have immediate use. Originality value This paper advocates the need to improve the content of entrepreneurial training packages to include the reinforcement of social competency skills in terms of relationship management as this may be the key to the facilitation of access to resources for innovation and growth.

IPO valuation using the price-multiple methods: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chui Zi Ong ◽  
Rasidah Mohd-Rashid ◽  
Kamarun Nisham Taufil-Mohd
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Least Square ◽  
Multiple Methods ◽  
Cross Sectional ◽  
Ols Regression ◽  
Content Type ◽  
Public Offerings ◽  
Ordinary Least Square ◽  
Valuation Method

Purpose This study aims to investigate the valuation accuracy of Malaysian initial public offerings (IPOs) by using price-multiple methods. Design/methodology/approach Cross-sectional data including 467 IPOs listed on the Malaysian stock exchange were used for the period of 2000–2017. This study used univariate ordinary least square (OLS) regression to analyse the relationship between IPOs’ price-multiples and comparable firms’ price-multiples. The test of valuation accuracy was conducted via computing valuation errors by segregating the sample into two groups: fixed-price IPOs and book-built IPOs. Furthermore, multiple OLS regression was used to examine the influence of IPO valuation on underpricing. Findings The findings of the results suggested that IPOs price-to-earnings (P/E), price-to-book (P/B) and price-to-sales (P/S) multiples were positively related to the median P/E, P/B and P/S multiples of five comparable firms matched by industry and revenues. The P/S multiple was shown to be the most significant valuation method, specifically in book-built IPOs. The findings indicated that those firms that had a lower valuation in comparison to the comparable firms were inclined to underprice their IPOs to allure investors to subscribe IPOs. In addition, book-built IPOs that had fair valuations were inclined to generate higher initial returns for investors. Practical implications The findings of this study observed implications for underwriters in avoiding the mis-valuation issue by considering the book-building mechanism. Originality/value This study attempted to explore the suitability of the valuation method to value IPOs in Malaysia.

Resistance to change and turnover intention: a moderated mediation model of burnout and perceived organizational support

2020 ◽  
Vol 33 (7) ◽  
pp. 1431-1447 ◽  
Author(s):  
Shalini Srivastava ◽  
Swati Agrawal
Keyword(s):  
Organizational Support ◽  
Turnover Intention ◽  
Perceived Organizational Support ◽  
Resistance To Change ◽  
Cross Sectional ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

PurposeThe purpose of the paper is to study the turnover intention of employees during the phenomenon of resistance to change. The paper examines the mediating role of burnout in the relationship of resistance of change to turnover intention and the moderating role of perceived organizational support in this relationship.Design/methodology/approachThe empirical data of the study has been collected via cross-sectional data collection method and include responses from 410 employees. The moderation mediation analysis has been done using the SPSS macro process.FindingsThe paper finds that resistance to change is an antecedent to the turnover intention which often represents employees' voluntary turnover in the future. This relationship of resistance to change and turnover intention is explained by burnout. However, the study establishes perceived organizational support as moderator, and with high POS, strength of this relationship will be reduced.Originality/valueThis paper contributes by examining the burnout as an intervening variable in the relationship of resistance to change and turnover intention and perhaps establishes for the first time the moderating role of perceived organizational support in reducing the influence of resistance to change on turnover intention, since retaining employees is of value to the organization.

Personality and boredom at work: the mediating role of job crafting

2019 ◽  
Vol 24 (4) ◽  
pp. 315-330
Author(s):  
Bogdan Oprea ◽  
Dragos Iliescu ◽  
Vlad Burtăverde ◽  
Miruna Dumitrache
Keyword(s):  
Job Crafting ◽  
Negative Consequences ◽  
Cross Sectional ◽  
Content Type ◽  
Work Related ◽  
Mediating Role ◽  
Cross Sectional Design ◽  
The Individual ◽  
The Relationship

Purpose Boredom at work is associated with negative consequences, therefore it is important to investigate whether employees engage in job crafting behaviors that reduce boredom and what are the individual differences associated with these behaviors. The paper aims to discuss these issues. Design/methodology/approach A questionnaire study was designed to examine the mediating role of job crafting in the relationship between conscientiousness and emotional stability and boredom among 252 employees (Study 1) and in the relationship between Machiavellianism and psychopathy and boredom among 216 employees (Study 2). Findings The results showed that conscientiousness is negatively related to work-related boredom. This relationship is mediated by job crafting. Neuroticism and psychopathy are positively associated with boredom at work, but these relationships are not mediated by job crafting behaviors. Research limitations/implications The study was based on self-reported measures, which might raise questions of common-method bias, and the research samples contained mostly women and young employees, which raises questions about generalizability of our findings. At the same time, the cross-sectional design does not allow causal inferences. Practical implications Organizations can select employees based on their personality for jobs that predispose to boredom and give them enough autonomy to be able to craft them. Moreover, they can identify employees who need support to manage their boredom and include them in job crafting interventions. Originality/value Traditionally, boredom at work has been considered as resulting from characteristics of tasks and jobs. The findings indicate that some employees can make self-initiated changes to their work in order to reduce their boredom and possibly its negative consequences.

Relationship between prestige signals and over-subscription ratio

2019 ◽  
Vol 15 (4) ◽  
pp. 564-579 ◽  
Author(s):  
Ali Albada ◽  
Othman Yong ◽  
Soo-Wah Low
Keyword(s):  
Initial Public Offering ◽  
Design Methodology ◽  
Executive Board ◽  
Cross Sectional ◽  
Content Type ◽  
Underwriter Reputation ◽  
Reputational Capital ◽  
Public Offering ◽  
The Relationship ◽  
Institutional Participation

PurposeThe purpose of this paper is to examine whether initial public offering (IPO) over-subscription is a function of firm’s prestige signals conveyed by third parties with reputational capital such as underwriter, auditor and independent non-executive board member.Design/methodology/approachThe relationship between prestige signals and over-subscription ratio (OSR) of IPOs is analysed using a cross-sectional regression based on a sample of 393 IPOs issued between January 2000 and December 2015.FindingsThe results indicate that IPOs underwritten by reputable underwriters have lower OSR than those underwritten by non-reputable underwriters. While issuer engages reputable underwriter to certify firm quality to reduce information asymmetry, the action brings with it lower initial returns for its IPO. Investors interpret the signal conveyed by issuer’s choice of underwriter from under-pricing perspective and respond accordingly by reducing IPO demand. This implies that investors regard under-pricing as a more valuable signal than firm quality signal associated with underwriter reputation. The findings also indicate that over-subscription increases in IPOs that have above average initial returns and higher institutional participation. Issuing firms that go public in a period of high IPO volume are associated with low OSR.Originality/valueThis is the first paper to examine the relationship between the prestige signals and OSR of IPOs in the Malaysian context.

Career commitment and subjective career success: the moderating role of career-enhancing strategies

2020 ◽  
Vol 41 (8) ◽  
pp. 1287-1305
Author(s):  
Emre Burak Ekmekcioglu ◽  
Mahmure Yelda Erdogan ◽  
Alptekin Sokmen
Keyword(s):  
Career Success ◽  
Career Commitment ◽  
Full Time ◽  
Cross Sectional ◽  
Content Type ◽  
Subjective Career Success ◽  
High Level ◽  
The Relationship ◽  
Moderating Role

PurposeThe purpose of this study is to test the moderating role of career-enhancing strategies (CESs) in the relationship between career commitment (CC) and subjective career success (CS).Design/methodology/approachData were collected from 217 full-time employees working for three different sectors in Ankara, Turkey. The participants were asked to respond to a self-reported survey. The hypotheses were tested using a hierarchical regression analysis.FindingsThe results indicated that CC had a significant and positive effect on subjective CS. Furthermore, the positive relationship between CC and subjective CS was stronger for employees with a high level of self-nomination and for employees with a high level of networking. However, creating career opportunities did not moderate the effects of CC on subjective CS.Research limitations/implicationsBecause this study had a cross-sectional research design, causality cannot be established among the study variables.Practical implicationsThe findings suggest a better understanding of the way CC is able to affect subjective CS through the networking and self-nomination CESs.Originality/valueThis study is original, in that no previous studies have investigated the moderating role of CESs in the relationship between CC and subjective CS.

The control-ownership wedge and the survival of French IPOs

2018 ◽  
Vol 19 (2) ◽  
pp. 271-294 ◽  
Author(s):  
Imen Derouiche ◽  
Syrine Sassi ◽  
Narjess Toumi
Keyword(s):  
Survival Time ◽  
Initial Public Offerings ◽  
Failure Time ◽  
Vote Rule ◽  
Agency Conflicts ◽  
Content Type ◽  
Controlling Shareholders ◽  
Public Offerings ◽  
The One

Purpose The purpose of this paper is to investigate the effect of the control-ownership wedge of controlling shareholders (excess control) on the survival of French initial public offerings (IPOs). Design/methodology/approach This paper studies a large sample of 434 French IPOs. The empirical analysis uses the Cox proportional hazard and accelerated-failure-time models. Data are manually gathered from IPO prospectuses. Findings The findings support a positive relation between the control-ownership wedge and IPO survival time, indicating that survival is more likely in firms with high excess control levels. This result is consistent with the view that controlling shareholders with a large control-ownership wedge have incentives to preserve their private benefits of control by increasing firm survival chances. The findings also show that older IPOs are more likely to survive, while riskier and underpriced IPOs are more likely to delist. Practical implications The results provide a better understanding of the role of excess control in IPO survival. They also enrich the debate on the efficiency of the one-share-one-vote rule. Originality/value The research provides new insights into the role of agency conflicts in IPO survivability. In particular, it explores the effect of dominant shareholders with a control-ownership wedge on survival time.

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