Vietnam's latest SOE reform push will see some success

2015 ◽  
Keyword(s):  
Free Trade ◽  
Initial Public Offerings ◽  
Foreign Investment ◽  
Public Debt ◽  
Corporate Sector ◽  
Economic Dependence ◽  
Content Type ◽  
Public Offerings ◽  
Core Business ◽  
The Us

Significance Vietnamese public debt levels and membership conditions attached to the US-led Trans-Pacific Partnership (TPP) free trade scheme are necessitating this intensification. Impacts Larger SOEs will launch initial public offerings to attract strategic investors. Reining back of SOEs into their 'core' business areas will accelerate. Vietnam's economic dependence on the foreign-invested corporate sector, particularly for export earnings, will increase. Foreign investment inflows will probably rise.

Early wealth effects of regional ADRs

2015 ◽  
Vol 11 (2) ◽  
pp. 198-214 ◽  
Author(s):  
Mark Schaub
Keyword(s):  
Initial Public Offerings ◽  
Latin American ◽  
Seasoned Equity Offerings ◽  
Wealth Effects ◽  
Equity Offerings ◽  
Short Term ◽  
Content Type ◽  
Public Offerings ◽  
Market Index ◽  
The Us

Purpose – The purpose of this paper is to determine what types of short-term wealth effects accrued to European and Latin American American Depository Receipt (ADR) investors and whether these were affected by the type of issue (initial public offerings (IPO) vs seasoned equity offerings (SEO)) or the date of issue (1990s vs 2000s). Design/methodology/approach – Standard ADR and IPO excess return methodology is utilized to compute and test excess returns against a US investment benchmark. This methodology is used in many ADR and IPO studies. Findings – European SEOs listed in the 2000s did better than those listed in the 1990s. The results for European IPOs were the opposite. Latin American SEOs did better relative to the US market index for issues listed in the 1990s as compared to those listed in the 2000s. Once again the results for Latin American IPOs were the opposite. Originality/value – This study differs from previous studies by emphasizing differences in short-term return behaviour for Latin American and European ADRs listed during a decade of US market stability (the 1990s) vs those listed in the 2000s when the US stock market encountered times of extreme return volatility. These timing differences affect not only the returns of all the ADRs but also show how ADR IPOs and SEOs tend to have opposite return behaviour based on timing. These return differences are important because the major benefits of portfolio diversification are achieved when asset returns are less correlated with each other.

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.

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.

Australian push on India ties likely, but with hurdles

2018 ◽  
Keyword(s):  
Free Trade ◽  
Foreign Investment ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Australian Government ◽  
Content Type ◽  
Economic Relations ◽  
Diplomatic Relationship ◽  
Business Structure

Subject Australian policy thinking on India. Significance A blueprint submitted to the Australian government in April, titled 'An India Economic Strategy to 2035', calls for increased export shipments and investment in India through to 2035 and a closer strategic and diplomatic relationship. Impacts Economic relations will evolve slowly, as India is still developing a business structure attractive to foreign investment. Talks on a free trade agreement are unlikely to progress until India agrees to lower market barriers, especially high tariffs. India’s 700,000-strong diaspora in Australia will play a long-term role in connecting markets in the two countries.

Ageing workforce will dampen South Korea’s GDP outlook

2017 ◽  
Keyword(s):  
South Korea ◽  
Free Trade ◽  
Gdp Growth ◽  
Consumer Spending ◽  
Us South ◽  
Content Type ◽  
Ageing Workforce ◽  
Pull Out ◽  
The Us ◽  
Net Export

Significance Year-on-year GDP growth was little changed at 2.7% in the first quarter after easing to 2.8% in 2015 and 2016 from an average of 3.7% in the five years to 2014. In 2016 consumer spending grew by less than 2.5%, machinery investment did not grow at all and net export volumes subtracted from growth. Impacts The US administration may threaten to pull out of the US-South Korea free-trade deal unless terms are renegotiated. Samsung in the first quarter of 2017 reported its best profits since 2013, but it will face an increasingly competitive market. Talk of reunification with North Korea as a solution to demographic pressures is fanciful.

USMCA has pros and cons for Mexico

2020 ◽  
Keyword(s):  
Mexico City ◽  
Free Trade ◽  
Auto Industry ◽  
Trade Deficit ◽  
Content Type ◽  
The Us ◽  
Pros And Cons

Subject Implications of the USMCA. Significance Mexico’s Senate on December 12 ratified changes to the US-Mexico-Canada Agreement on free trade (USMCA), agreed on December 10. Several important changes were signed by the three governments in Mexico City, altering the original agreement signed in November 2018. Mexico now awaits ratification of the final deal in Washington and Ottawa. If enacted, the accord will replace NAFTA, which has determined the rules of trade among the countries since 1994. Impacts What was initially framed as a political victory for AMLO may lose lustre as details emerge on the concessions granted by his government. Long-term auto industry investments in Mexico may suffer due to new stipulations on issues such as regional content and wages. After the USMCA is formally enacted, Trump will probably focus on seeking to reduce the US trade deficit with China.

Sudan's economic reform will prove challenging

2019 ◽  
Keyword(s):  
Economic Reform ◽  
Foreign Investment ◽  
International Aid ◽  
Economic Hardship ◽  
Debt Relief ◽  
Major Focus ◽  
Content Type ◽  
Government Corruption ◽  
The Us ◽  
The Government

Significance Bringing tangible improvements to the economy will be a major challenge for Sudan’s new transitional government. Economic hardship and anger over perceived government corruption were recurring causes of protests over recent years and could be again. Impacts The government will publicise its efforts to stabilise prices, although actually achieving this may prove elusive. Efforts to secure removal from the US list of state sponsors of terrorism will be a major focus, but this process will take time. Delisting would be welcomed by businesses and investors, and would boost debt relief prospects, but will not resolve underlying challenges. Significant new foreign investment will depend on the government’s performance, but fresh injections of international aid can be expected.

Australia-US ties face some further difficulty

2019 ◽  
Keyword(s):  
Free Trade ◽  
Content Type ◽  
Economic Relations ◽  
The Us ◽  
Trade Partner ◽  
Trump Administration ◽  
Security Alliance

Significance Morrison’s visit comes as the Trump administration pushes to build up partnerships with Indo-Pacific countries. Impacts US-Australian economic relations will remain strong, helped by a free-trade deal signed in 2005. Morrison’s refusal to be drawn into the crisis in US-Iran relations will strain the US-Australian security alliance. Australia’s main trade partner, China. will be irked if Morrison gets too close to Trump.

Initial public offerings and air pollution: evidence from China

2015 ◽  
Vol 9 (1) ◽  
pp. 99-114 ◽  
Author(s):  
Yan Luo ◽  
Xiaolin Qian ◽  
Jinjuan Ren
Keyword(s):  
Air Pollution ◽  
Corporate Governance ◽  
Initial Public Offerings ◽  
Ambient Air ◽  
Environmental Conservation ◽  
Policy Implications ◽  
Chinese Government ◽  
Content Type ◽  
Public Offerings ◽  
The Impact

Purpose – The purpose of this study is to investigate the impact of firms’ financing activities on the environment. Faced with a deteriorating global environment, both corporations and regulatory bodies have become more responsive to environmental conservation problems. However, existing literature has not adequately addressed the question of whether and how firms’ business activities influence the environment. Design/methodology/approach – Using the daily air pollution indices of 120 Chinese cities from 2001 to 2012, this study found that air pollution is alleviated after firms’ initial public offerings (IPOs). This paper proposes that firms’ IPOs influence the ambient air pollution through three channels: production scale, technical reform and corporate governance effects. Findings – The authors of this study found that the proceeds acquired in IPOs result in enlarged production scales that increase pollution, while the investment of these proceeds in social responsibility-related technical reform and enhanced corporate governance reduce pollution. Moreover, the authors discover that firms with a higher state ownership emit fewer pollutants, thus supporting the positive monitoring role of the Chinese government. Originality/value – Although this study investigates the impact of IPOs on air quality in China, the proposed analytical framework also applies to studies of other financing activities in global markets. This study has important policy implications for government regulations in environmental controls.

The impact of the quality of VC financing and monitoring on the survival of IPO firms

2017 ◽  
Vol 43 (4) ◽  
pp. 440-451 ◽  
Author(s):  
Sophie Pommet
Keyword(s):  
Initial Public Offerings ◽  
Survival Rates ◽  
Venture Capitalist ◽  
Venture Capitalists ◽  
Content Type ◽  
Public Offerings ◽  
Advantages And Disadvantages ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of venture capital (VC) involvement on the survival rate of French initial public offerings (IPOs) during the period 1996-2006. The paper examines the link between the survival rates of IPO companies, and several proxies for the quality of venture capitalist financing and monitoring. Design/methodology/approach To analyze the impact of the involvement of VC on both long and short run post-IPO survival, two methods are used: survival analysis (the Cox proportional hazard), and a logit model. Findings This paper shows that the quality of venture capitalist monitoring, measured by the duration of their investment before the IPO, is positively correlated with company survival rates. However, the author does not find the expected result when the author considers the experience of venture capitalists measured by their age. Research limitations/implications The findings are limited to a sample of VC-backed companies that went public. Practical implications The findings have implications for entrepreneurs. When analyzing the advantages and disadvantages linked to the presence of VC firms in the capital of their companies, entrepreneurs should consider that certain types of venture capitalists might be more or less able to be involved in the monitoring and value adding process. Originality/value To date, there is no comprehensive study on the French IPO market analyzing both long and short run post-IPO survival of VC-backed companies. This paper fills this gap.

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