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.

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.

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.

Does Locus of Control Mediate the Relationship Between Personality Integration and Self-Disclosure?

2018 ◽  
pp. 245-264 ◽  
Author(s):  
Nagendra Singh Nehra
Keyword(s):  
Locus Of Control ◽  
Future Research ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Public And Private ◽  
Self Disclosure ◽  
Internal Locus ◽  
Internal Locus Of Control ◽  
Personality Integration ◽  
Private Sector Organizations

The topic of self-disclosure has been explored significantly and considered to greatly impact employees' relationships. Thus, this chapter explores the association between personality integration and self-disclosure considering how locus of control acts as a mediator. The sample was collected from public and private sector organizations in Uttarakhand. The data was collected through a cross-sectional survey-based research design, and a convenience sampling method was used. Thus, a total of 192 questionnaires were distributed during office hours. In the final analysis, only 189 responses were considered; the rest were discarded due to missing data. The authors use correlation and four-step hierarchical multiple regression analyses. Results show that internal locus of control partially mediates said association. Further, it was found that personality integration is positively associated with self-disclosure through internal locus of control. Additionally, external locus of control has a positive effect on self-disclosure. Implications and scope for future research is highlighted.

scholarly journals Impact of Coronavirus disease (COVID-19) pandemic on health professionals

2020 ◽  
Vol 36 (COVID19-S4) ◽  
Author(s):  
Bilal Ahmed Sethi ◽  
Ahsan Sethi ◽  
Sadaf Ali ◽  
Hira Shireen Aamir
Keyword(s):  
Health Professionals ◽  
Well Being ◽  
Future Research ◽  
Cross Sectional ◽  
Public And Private ◽  
Creative Commons ◽  
Work From Home ◽  
Qualitative Survey ◽  
Public And Private Sector ◽  
And Coping

Objective: Recognizing the huge potential ramifications of COVID-19 pandemic, this study explores its impact on health professionals personally and professionally along with the associated challenges. Methods: A descriptive cross-sectional qualitative survey was conducted from March-April 2020. Participants included health professionals from various disciplines in both public and private-sector institutions of Pakistan. The sample size was not predetermined, and an iterative approach of simultaneous data collection and analysis was taken until data and time saturation were reached. Thematic analysis of the qualitative data was carried out by two analysts. Results: Two hundred and Ninety health professionals responded. They reported an impact on their mental, physical and social well-being. The clinicians mentioned facing an unprecedented workload in overstretched health facilities, while those in academia become engaged with planning/providing emergency remote teaching for the students affecting work-life balance. Some challenges associated with work-from-home and in the hospitals were identified. Conclusion: During COVID-19, the health professionals are anxious, overworked and financially unstable while planning, creating and caring for others and their families. We need to support them to do their jobs, be safe and stay alive. Future research should explore the fears and coping strategies of health professionals during pandemics. doi: https://doi.org/10.12669/pjms.36.COVID19-S4.2779 How to cite this:Sethi BA, Sethi A, Ali S, Aamir HS. Impact of Coronavirus disease (COVID-19) pandemic on health professionals. Pak J Med Sci. 2020;36(COVID19-S4):---------. doi: https://doi.org/10.12669/pjms.36.COVID19-S4.2779 This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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.

Impact of pricing mechanism on IPO oversubscription: evidence from Pakistan stock exchange

2020 ◽  
Vol 32 (2) ◽  
pp. 239-254 ◽  
Author(s):  
Waqas Mehmood ◽  
Rasidah Mohd-Rashid ◽  
Abd Halim Ahmad
Keyword(s):  
Initial Public Offerings ◽  
Robust Regression ◽  
Stock Exchange ◽  
Least Square ◽  
Cross Sectional ◽  
Content Type ◽  
Public Offerings ◽  
Ordinary Least Square ◽  
Pricing Mechanism ◽  
Available Information

Purpose The purpose of this paper is to examine the effects of pricing mechanism on initial public offerings (IPOs) oversubscription in Pakistan. Design/methodology/approach This study used cross-sectional data to analyse 85 listed IPOs on the Pakistan stock exchange during the period of 2000-2017 to assess hypotheses related to influential determinants of IPO oversubscription. Accordingly, ordinary least square, robust regression and quantile regression approaches were applied in this study to evaluate the factors that influenced oversubscription. Findings The outcome displayed pricing mechanism is negatively significant with an oversubscription of IPOs. This indicates firms using the fixed-price mechanism signalled higher information asymmetry and uncertainty in their value. Thus, investors are aware that they will be offset with underpricing, and it is expected the demand will be higher for the particular IPOs. Research limitations/implications This study is entirely focused on the available information of prospectus that should not be ignored by potential investors at the time of subscription of IPO. Therefore, the study contributes to extending the available literature in signalling theory whereby issuers should consider using the book-building pricing mechanism in enhancing the efficiency of the IPO offer price during the listing. Originality/value This paper provides evidence for the determinants of the IPO oversubscription.

Socio-Cultural Impacts on Drug Trafficking Trends in Europe

2015 ◽  
Vol 23 (4) ◽  
pp. 383-406 ◽  
Author(s):  
Diana S. Dolliver
Keyword(s):  
Time Series ◽  
Drug Trafficking ◽  
Multivariate Time Series ◽  
Criminological Theory ◽  
Future Research ◽  
Cross Sectional ◽  
Crime Type ◽  
Anomie Theory ◽  
The World ◽  
Global Patterns

A myriad of national and international publications have detailed global patterns of drug trafficking for decades, with recent reports identifying Europe as a global consumption “hotspot” for the majority of popular drugs in the world. Yet, despite increasing levels of drug trafficking worldwide, scholars have not routinely examined this crime-type through the lens of a socio-cultural criminological theory. As such, this empirical study employed guidance from Institutional Anomie Theory. Data were collected from fourteen countries in Europe from 1995 to 2009 and analyzed using pooled cross-sectional multivariate time series. Trafficking patterns in cannabis, heroin, cocaine, and amphetamines were operationalized using officially reported drug seizure amounts. The findings from this study emphasize the need for differentiation between drug-types in future research, but also illustrate support for use of the theoretically informed variables.

Initial Public Offerings of State-Owned Enterprises: An International Study of Policy Risk

2007 ◽  
Vol 42 (2) ◽  
pp. 313-337 ◽  
Author(s):  
Swee-Sum Lam ◽  
Ruth Seow-Kuan Tan ◽  
Glenn Tsao-Min Wee
Keyword(s):  
Information Asymmetry ◽  
Initial Public Offerings ◽  
International Study ◽  
Cross Sectional ◽  
Public Offerings ◽  
The Cross ◽  
Policy Risk ◽  
Practical Measure ◽  
Risk Policy

AbstractPolicy risk, rather than information asymmetry, explains the cross-sectional underpricing of privatized initial public offerings. The issuer governments of high policy risk issues tend to retain a large equity stake and underprice more with underpricing increasing in retained equity. While the issuer government's retained equity is an observable signal for policy risk, we find that the quality of a country's bureaucratic machinery is a more intuitive and practical measure of policy risk. Policy risk also explains the absence of a systematic relation between the initial returns on privatized and private initial public offerings.

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.

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.

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