scholarly journals The Short-Term Impacts of the Registration-Based IPO Reform in China: Towards a More Sustainable Equity Market

2021 ◽  
Vol 13 (20) ◽  
pp. 11365
Author(s):  
Chun Zhou ◽  
Wenyu Zhou ◽  
Jiajun Lu
Keyword(s):  
Equity Market ◽  
Short Term ◽  
Ipo Underpricing ◽  
Firm Level ◽  
Demand And Supply ◽  
The Sustainable Development ◽  
Market Structures ◽  
Level Data ◽  
Underlying Risk ◽  
Service Markets

The sustainable development of a modern equity market heavily relies on an effective IPO system that can properly reflect the underlying risk, demand, and supply in the IPO market. Recently, China has implemented an unprecedented IPO reform that transforms the previous approval-based IPO system to a registration-based one. Despite its importance, the impacts of the reform still remain unexplored. Using firm-level data from the Chinese A-shares market, we show that the recent IPO reform significantly increases IPO cost and reduces the degree of IPO underpricing. We also investigated the impacts of the reform on the market structures in different IPO service markets. Overall, our findings are consistent with the hypothesis that the registration-based IPO reform makes the IPO system in China more market-oriented. To our best knowledge, this is the first empirical study that sheds light on the short-term impacts of the adoption of a registration-based IPO system.

scholarly journals Coaching Disadvantaged Young People: Evidence from Firm Level Data

2015 ◽  
Vol 235 (4-5) ◽  
pp. 459-473
Author(s):  
Jens Mohrenweiser ◽  
Friedhelm Pfeiffer
Keyword(s):  
Instrumental Variable ◽  
Birth Cohorts ◽  
Electronic Industry ◽  
Disadvantaged Youth ◽  
Short Term ◽  
Firm Level ◽  
Apprenticeship Training ◽  
Level Data ◽  
Firm Level Data ◽  
Causal Impact

Summary In Germany, apprenticeship training firms currently face a shrinking number of qualified schoolleavers because of smaller birth cohorts and an increasing proportion of school leavers aiming for higher education. This paper investigates whether a programme that supports firms to train disadvantaged youth can reduce recruiting difficulties in apprentice training firms. Based on unique firm-level data from the metal and electronic industry in Baden-Württemberg from 2010 to 2013, we apply instrumental variable and difference-in-difference estimations and find no significant short-term causal impact of the programme.

Growth through export: evidence from Iran’s manufacturing plants

2020 ◽  
Vol 47 (1) ◽  
pp. 111-131 ◽  
Author(s):  
Kowsar Yousefi ◽  
Seyed Ali Madnanizdeh ◽  
Fateme Zahra Sobhani
Keyword(s):  
Growth Rate ◽  
Growth Effect ◽  
Developing Economy ◽  
Short Term ◽  
Firm Level ◽  
Content Type ◽  
Manufacturing Plants ◽  
Level Data ◽  
Second Year

PurposeDoes the long-term growth rate of a firm increase by exporting? If yes, how large is that increase in a developing economy? The paper aims to discuss this issue.Design/methodology/approachThe authors incorporate data from the manufacturing plants in Iran as a developing economy for 2003–2011 to address this question. Using fixed effect panel and propensity score matching method, the authors examine whether exportation can affect a firm’s growth rate to test for the learning to grow hypothesis.FindingsThe findings document that: not only the exporters are larger and more productive than non-exporters, but they also grow faster in size and productivity measures as well. Additionally, the authors find that the rise in the growth rate is a short-term phenomenon and it disappears in the second year; meaning that exportation does not have a permanent growth effect. The findings are consistent with a spot effect of learning, compared to a permanent growth engine. Results are robust to different analysis tests.Originality/valueThe authors investigate the learning effect of exporting within recently released firm-level data of a developing country.

Does Greater Creditor Protection Affect Firm Borrowings? Evidence from IBC

2020 ◽  
Vol 14 (2) ◽  
pp. 212-225 ◽  
Author(s):  
Jibin Jose ◽  
Snehal S. Herwadkar ◽  
Prabal Bilantu ◽  
Shihas Abdul Razak
Keyword(s):  
Jel Classification ◽  
Creditor Protection ◽  
Short Term ◽  
Firm Level ◽  
New Era ◽  
Level Data ◽  
Bankruptcy Code ◽  
The Impact ◽  
Control Regime

The Insolvency and Bankruptcy Code (IBC) in India ushered in a new era of creditor-in-control regime with an in-built mechanism for time-bound resolution. This article examines the impact of the Code on firm borrowings and cost of funds. Using firm-level data on 4,531 firms for the period 2012–2018, we find that implementation of IBC has had many desirable consequences from a policy perspective. It helped in deleveraging of firms as their reliance on borrowings—whether long-term or short-term—declined. Further analysis suggests that this is especially true for weak and large firms. The stronger creditor protection is, thus, a step in the direction of reducing the burden on banks and further market deepening. JEL Classification: G32, G33, G38, D22, O16

Implicit Taxes Amid Race to the Bottom in a Global Tax Game

2020 ◽  
Vol 27 (2) ◽  
pp. 42
Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn
Keyword(s):  
Capital Mobility ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Race To The Bottom ◽  
Tax Subsidy ◽  
Tax Subsidies ◽  
Level Data ◽  
Tax Returns ◽  
Tax Hypothesis

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation

Ageing and Employability. Evidence from Belgian Firm-Level Data

2012 ◽  
Author(s):  
Mariann Rigo ◽  
Vincent Vandenberghe ◽  
Fábio Waltenberg
Keyword(s):  
Firm Level ◽  
Level Data ◽  
Firm Level Data

scholarly journals Who Really Benefits from Consumption Tax Cuts? Evidence from a Large VAT Reform in France

2019 ◽  
Vol 11 (1) ◽  
pp. 38-63 ◽  
Author(s):  
Youssef Benzarti ◽  
Dorian Carloni
Keyword(s):  
Value Added ◽  
Consumption Tax ◽  
Difference In Differences ◽  
Firm Level ◽  
Employment Effects ◽  
Level Data ◽  
Price Effects ◽  
Firm Level Data ◽  
Material Goods ◽  
Firm Owners

This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009. In contrast to previous studies, which only focus on the price effects of VAT reforms, we estimate the effects of the VAT cut on four groups: workers, firm owners, consumers, and suppliers of material goods. Using a difference-in-differences strategy on firm-level data, we find that: firm owners pocketed more than 55 percent of the VAT cut; consumers, sellers of material goods, and employees shared the remaining windfall with consumers benefiting the least; and the employment effects were limited. (JEL H22, H25, L83)

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