Opportunities and limitations of public equity markets for SMEs

2016 ◽  
Vol 2015 (1) ◽  
pp. 49-84 ◽  
Author(s):  
Iota Kaousar Nassr ◽  
Gert Wehinger
Keyword(s):  
Equity Markets ◽  
Public Equity

scholarly journals Does the Market Correctly Value Investment Options?*

2020 ◽  
Vol 24 (6) ◽  
pp. 1159-1201
Author(s):  
Evgeny Lyandres ◽  
Egor Matveyev ◽  
Alexei Zhdanov
Keyword(s):  
Stock Market ◽  
Real Options ◽  
Equity Markets ◽  
Optimal Investment ◽  
Investment Under Uncertainty ◽  
Innovative Firms ◽  
Public Equity

Abstract This paper shows that the stock market misprices firms’ investment options. We build a real options model of optimal investment under uncertainty to estimate the value of firms’ investment options. We show that firms with valuable investment options have a higher likelihood of being mispriced. Importantly, this mispricing is not one-sided, as such firms are equally likely to be undervalued or overvalued. Our paper adds to the debate on whether public equity markets are myopic and systematically undervalue innovative firms. We show that this is not necessarily the case.

scholarly journals Innovation Strategy of Private Firms

2017 ◽  
Vol 53 (1) ◽  
pp. 1-32 ◽  
Author(s):  
Huasheng Gao ◽  
Po-Hsuan Hsu ◽  
Kai Li
Keyword(s):  
New Technology ◽  
Equity Markets ◽  
Life Cycles ◽  
Innovation Strategy ◽  
Private Firms ◽  
Investment Horizon ◽  
Public And Private ◽  
Public Firms ◽  
Innovation Strategies ◽  
Public Equity

We compare innovation strategies of public and private firms based on a large sample over the period 1997–2008. We find that public firms’ patents rely more on existing knowledge, are more exploitative, and are less likely in new technology classes, while private firms’ patents are broader in scope and more exploratory. We investigate whether these strategies are due to differences in firm information environments, CEO risk preferences, firm life cycles, corporate acquisition policies, or investment horizons between these two groups of firms. Our evidence suggests that the shorter investment horizon associated with public equity markets is a key explanatory factor.

Is Exchange Regulation Effective for Junior Public Equity Markets?

2018 ◽  
pp. 486-505
Author(s):  
J. Ari Pandes ◽  
Michael Robinson
Keyword(s):  
Stock Exchange ◽  
Early Stage ◽  
Market Performance ◽  
Equity Markets ◽  
Equity Market ◽  
Secondary Market ◽  
Public Firms ◽  
Market Index ◽  
Public Equity ◽  
Pool Market

In this chapter the authors examine the effectiveness of an exchange-regulated junior public equity market in the development of early-stage firms. They focus specifically on a regulated blind-pool market in Canada known as the Capital Pool Company program and show that the exchange-regulated program has increased the number of junior public firms in Canada, with over 10% graduating to a more senior stock exchange within three years on average. They also show that the firms experience strong secondary market performance pre-graduation, but that the post-graduation performance is worse than the market index in the three- and five-year periods after the graduation.

Ship Finance: US Public Equity Markets

2012 ◽  
pp. 392-416 ◽  
Author(s):  
Costas Th. Grammenos ◽  
Nikos C. Papapostolou
Keyword(s):  
Equity Markets ◽  
Public Equity

scholarly journals Do Public Equity Markets Matter in Emerging Economies? Evidence from India*

2012 ◽  
Vol 17 (5) ◽  
pp. 1571-1615 ◽  
Author(s):  
Radhakrishnan Gopalan ◽  
Todd A. Gormley
Keyword(s):  
Emerging Economies ◽  
Equity Markets ◽  
Public Equity

scholarly journals Survival strategies for start-ups

2005 ◽  
Vol 11 (2) ◽  
Author(s):  
Dina Chaya
Keyword(s):  
Business Models ◽  
Critical Mass ◽  
Equity Markets ◽  
Survival Strategies ◽  
Private And Public ◽  
Public Equity ◽  
Start Ups ◽  
Considerable Pressure

Following recent difficult private and public equity markets, many biotech start-ups are now under considerable pressure. In this environment, start-ups are struggling to secure financing and their valuations are being trimmed by investors. In order to survive, firms are being compelled to adjust their business models to satisfy investors, enter alliances to decrease their cash burn and consolidate with external assets to build critical mass internally.

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