Initial Public Offerings: A Synthesis of the Literature and Directions for Future Research

2017 ◽  
Vol 11 (3-4) ◽  
pp. 154-320 ◽  
Author(s):  
Michelle Lowry ◽  
Roni Michaely ◽  
Ekaterina Volkova
Keyword(s):  
Initial Public Offerings ◽  
Future Research ◽  
Public Offerings

IPO Underpricing: A Meta-Analysis and Research Synthesis

2003 ◽  
Vol 27 (3) ◽  
pp. 271-295 ◽  
Author(s):  
Catherine M. Daily ◽  
S. Trevis Certo ◽  
Dan R. Dalton ◽  
Rungpen Roengpitya
Keyword(s):  
Initial Public Offerings ◽  
Meta Analysis ◽  
Research Synthesis ◽  
Future Research ◽  
Popular Press ◽  
Ipo Underpricing ◽  
Public Offerings ◽  
Factors Associated ◽  
Significant Relationships ◽  
Dot Com

Initial public offerings (IPOs) have been a prominent focus of academic and popular press attention, especially in recent years. Much of this attention can be attributed to the increase in IPO activity as a function of the “dot com” phenomenon. Of particular interest to both academics and practitioners is IPO underpricing. Review of existing research suggests little consensus regarding those factors associated with underpricing. We provide a meta-analysis of published studies. Our findings reveal a number of significant relationships, many of which are opposite that predicted by signaling theory. Implications of these findings for practice and future research are discussed.

The Influence of Firm Maturation on Firms' Rate of Adjustment to Their Optimal Capital Structures

2001 ◽  
Vol 23 (s-1) ◽  
pp. 70-94 ◽  
Author(s):  
Jeffrey A. Pittman ◽  
Kenneth J. Klassen
Keyword(s):  
Time Series ◽  
Initial Public Offerings ◽  
Future Research ◽  
Financial Policies ◽  
Cross Sectional ◽  
Public And Private ◽  
Public Offerings ◽  
Tax Shields ◽  
Optimal Capital ◽  
Refinancing Costs

Extant empirical research on firms' adjustment to their optimal capital structures is cross-sectional. However, Scholes and Wolfson (1989) argue that refinancing costs that accumulate with age increasingly impede firms from restoring their optimal capital structures. This study provides evidence on the time-series variation in the rate at which firms move toward their leverage targets that is consistent with this prediction. In separate tests, age is measured from two dates—from firms' initial public offerings and from their incorporation—to examine whether the duration of their public and private experience, respectively, affect the evolution in financial policies. This paper contributes to the literature by developing a research design that isolates the influence of dynamic refinancing costs on the leverage adjustment problem. The evidence also justifies future research on Scholes and Wolfson's (1989) predictions about the time-series pattern in firms' tax shields by empirically validating that refinancing costs increasingly constrain their capital structures.

The impact and implications of SWFs: a systematic review of literature

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Roshni Garg ◽  
Abha Shukla
Keyword(s):  
Initial Public Offerings ◽  
Future Research ◽  
Sovereign Wealth Funds ◽  
Content Type ◽  
Public Offerings ◽  
Target Firms ◽  
Governance Practices ◽  
Internationalization Strategies ◽  
Future Research Directions ◽  
The Impact

Purpose This paper aims to systematically review all available evidence on the implications of sovereign wealth funds (SWFs) for various stakeholders (recipients of sovereign investment, home countries, which incorporate SWFs and the world at large) and offer future research directions. Design/methodology/approach A systematic literature review (SLR) technique is used to review 102 handpicked articles for the period 2005‐2019. Findings This review reveals that the literature on the impact of SWFs emerged only during the financial crisis of 2008–2011 and much of it is qualitative in nature. The literature is lopsidedly focused on the impact of SWFs on target firms and there has been a limited empirical investigation of the impact on other stakeholders. There is a lack of consensus in several areas, which calls for additional research. Few areas, which have not been addressed in the literature and can be taken up by future researchers include the impact of SWFs on macroeconomic fundamentals and stock markets of recipient countries, especially emerging economies; implications of SWFs for alternative asset classes; impact on the welfare of citizens and internationalization strategies of home countries; impact on initial public offerings and unlisted corporations; and impact on innovativeness, efficiency and corporate governance practices of target firms. Originality/value To the best of the authors’ knowledge, this is the first paper to use the SLR technique to review the literature on SWFs. It considers the impact of SWFs on all stakeholders and covers both qualitative and quantitative literature published over a long period of 2005‐2019. It also systematizes all available evidence on this theme and identifies important research gaps, which may be helpful for academicians, practitioners and policymakers.

scholarly journals Understanding firm exit: a systematic literature review

2021 ◽  
Author(s):  
Elena Cefis ◽  
Cristina Bettinelli ◽  
Alex Coad ◽  
Orietta Marsili
Keyword(s):  
Literature Review ◽  
Initial Public Offerings ◽  
Systematic Literature Review ◽  
English Summary ◽  
Future Research ◽  
Special Issue ◽  
Firm Exit ◽  
Public Offerings ◽  
Final Sample ◽  
The Individual

AbstractWe investigate the corpus of literature on firm exit by means of a systematic literature review (SLR) which yields a final sample of 142 journal articles for the period 1991–2020. The phenomenon of firm exit is explored from a variety of perspectives: business exit; exit at the individual entrepreneur level; exit from specific markets; exit from foreign markets; and the role of exit for industrial dynamics conceived more broadly. Special attention is given to the various exit routes, including voluntary liquidation, mergers and acquisitions (M&A), initial public offerings (IPO), and of course bankruptcy. The SLR sets the scene for the Special Issue papers that are presented towards the end, and we conclude with some suggestions for future research.The Plain English Summary This article develops a systematic literature review around three decades of firm exit research, patterns, developments, and intriguing gaps. In this paper, we systematically review 142 studies on firm exit from various perspectives, identify major patterns, and outline the debate around firm exit. We propose reflections useful for scholars willing to engage in firm exit research in the future and set the scene for the special issue papers. Overall, this work shows the remarkable progress made in the area of firm exit that has evolved from the view of exit as a homogenous event signaling failure to a vision of exit as a heterogenous event. Exploring the sources of heterogeneity of exits from various perspectives could offer promising paths for future research.

IPO Underpricing: A Meta–Analysis and Research Synthesis

2003 ◽  
Vol 27 (3) ◽  
pp. 271-295 ◽  
Author(s):  
Catherine M. Daily ◽  
S. Trevis Certo ◽  
Dan R. Dalton ◽  
Rungpen Roengpitya
Keyword(s):  
Initial Public Offerings ◽  
Meta Analysis ◽  
Research Synthesis ◽  
Future Research ◽  
Popular Press ◽  
Ipo Underpricing ◽  
Public Offerings ◽  
Factors Associated ◽  
Significant Relationships ◽  
Dot Com

Initial public offerings (IPOs) have been a prominent focus of academic and popular press attention, especially in recent years. Much of this attention can be attributed to the increase in IPO activity as a function of the “dot com” phenomenon. Of particular interest to both academics and practitioners is IPO underpricing. Review of existing research suggests little consensus regarding those factors associated with underpricing. We provide a meta–analysis of published studies. Our findings reveal a number of significant relationships, many of which are opposite that predicted by signaling theory. Implications of these findings for practice and future research are discussed.

International Real Estate Review

2015 ◽  
Vol 18 (1) ◽  
pp. 45-87
Author(s):  
Charles Leung ◽  
◽  
Edward Chi Ho Tang ◽  
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Housing Market ◽  
Initial Public Offerings ◽  
Asset Markets ◽  
Future Research ◽  
Public Offerings ◽  
Underlying Factor ◽  
The World ◽  
Chinese Tourists

This paper argues that since China closes her asset markets, investors turn to Hong Kong instead. The initial public offerings (IPOs) of Chinese firms in the Hong Kong stock market and the local housing market of Hong Kong improve the prediction of each other, as they may serve as a coordinator of herds among investors. Alternative explanations such as the "production conjecture" and ¡§underlying factor conjecture¡¨ are found to be inconsistent with the data. Our results are also consistent with the increasing importance of Chinese tourists in the world. Directions for future research are also discussed.

IPO underpricing in the insurance industry and the effect of Sharia compliance

2016 ◽  
Vol 9 (3) ◽  
pp. 314-332 ◽  
Author(s):  
Zakaria Boulanouar ◽  
Faisal Alqahtani
Keyword(s):  
Initial Public Offerings ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Future Research ◽  
Major Drawback ◽  
Content Type ◽  
Public Offerings ◽  
Insurance Sector ◽  
Monopsony Power ◽  
The Impact

Purpose The purpose of this paper is to explore the existence of underpricing in the cooperative insurance sector in the Saudi Arabian market and to examine whether Sharia compliance requirements have an impact on the level of underpricing. Design/methodology/approach Underpricing and the effect of Sharia compliance are analysed using a comprehensive sample of 33 insurance companies with data collected between 2007 and 2013, after taking into account market movements, as well as some factors well-known in the literature. Findings The authors find that underpricing not only exists but also is among the highest in the world (455 per cent), which contradicts the literature on initial public offerings (IPOs)’ pricing in highly regulated sectors. In light of one of the other findings of the authors, namely, the small number of insurance underwriters, the authors attribute these very high levels of underpricing in part to the monopsony power of insurance underwriters in Saudi Arabia. Regarding the Sharia compliance effect, they find that it does not significantly reduce the underpricing of insurance offerings. The authors interpret this as the fact that Sharia status might not be taken into account by underwriters when they price the offerings of insurance companies, due to a major drawback in the implementing regulations of cooperative insurance which have been highly criticised by practitioners. Research limitations/implications Future research should try to include more factors that might explain the underpricing and its determinants. Two important recommendations flowing from this study for regulatory and supervisory institutions are the need to improve disclosure and transparency conditions and to work towards reducing the monopsony power enjoyed by the underwriters. As for Sharia effect, the Saudi central bank should resolve the issue of Sharia compliance by adopting one of the Sharia-friendly models suggested by Islamic finance scholars, such as wakala or mudaraba. Originality/value To the best of authors’ knowledge, this paper is among the first to offer empirical evidence of the impact of Sharia compliance on the initial return of the IPOs of cooperative insurance firms.

scholarly journals Initial Public Offerings, Underpricing and Performance: The Case of Top International Brands

2016 ◽  
Author(s):  
Murad Harasheh ◽  
Stefano Gatti
Keyword(s):  
Initial Public Offerings ◽  
Private Equity ◽  
Brand Value ◽  
Future Research ◽  
Positive Role ◽  
Data Set ◽  
Public Offerings ◽  
And Performance ◽  
The Relationship

The present study aims at investigating the relationship between Initial Public Offerings (IPOs) variables mainly underpricing on one hand, and the brand value measures on the other. Our final data set is 104 international brand companies. We implement empirical approach using hierarchical OLS regression and descriptive statistics. We show that underpricing is positively related to brand value which emphasizes the marketing role of going public and underpricing in enhancing brand equity through the product market, which additionally confirms some information asymmetry models. We also find that on average brand companies had not been recognized as brands at the IPO time. Moreover, we show the positive role of private equity in enhancing brand value, additionally, the non-linear association between underpricing and brand value is not evident. Finally, we draw some policy implication and suggestions for future research.

IPOs and Corporate Governance

2015 ◽  
Author(s):  
Igor Filatotchev ◽  
Douglas Michael Wright ◽  
Garry D. Bruton
Keyword(s):  
Corporate Governance ◽  
Executive Compensation ◽  
Board Of Directors ◽  
Initial Public Offerings ◽  
Private Equity ◽  
Future Research ◽  
Entrepreneurial Firms ◽  
Public Offerings ◽  
Ipo Performance ◽  
The Impact

This article discusses various aspects of corporate governance and initial public offerings (IPOs). It begins with an analysis of agency theory that addresses IPOs and corporate governance research, together with the impact of governance on investors. It then considers three aspects of corporate governance that are relevant to outside investors to the IPO: the IPO firm’s board of directors, executive compensation, and ownership concentration. It also examines how national institutions affect corporate governance worldwide and looks at two types of IPOs backed by private equity (PE): venture capital backed IPOs of entrepreneurial firms and PE-backed buyouts of companies that subsequently launch an IPO. The article also analyzes the link between information asymmetries and IPO performance before concluding with an outline of directions for future research that focus on important issues relating to IPOs and corporate governance.

Allocation of Initial Public Offerings and Flipping Activity

CFA Digest ◽  
2003 ◽  
Vol 33 (4) ◽  
pp. 26-28
Author(s):  
M.E. Ellis
Keyword(s):  
Initial Public Offerings ◽  
Public Offerings
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