scholarly journals Initial Public Offerings, Underpricing and Performance: the case of Top International Brands

2016 ◽  
Vol 17 (3) ◽  
Keyword(s):  
Initial Public Offerings ◽  
Public Offerings ◽  
And Performance

The Relationship between Boards of Directors and Initial Public Offerings in the Biotechnology Industry

1998 ◽  
Vol 22 (3) ◽  
pp. 5-29 ◽  
Author(s):  
Todd A. Finkle
Keyword(s):  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Boards Of Directors ◽  
Biotechnology Industry ◽  
Public Offerings ◽  
Biotechnology Firms ◽  
The Board Of Directors ◽  
And Performance ◽  
Public Offering ◽  
Performance Results

Utilizing the entire population of public biotechnology firms from 1980-1994, three models were tested to determine If a relationship exists between the size and composition of the board of directors and performance. Results indicate significant positive relationships between director expertise and the size of a firm's initial public offering. Going public during hot markets and larger firms were also related to larger Initial public offerings. These findings will benefit practitioners in the formation of boards within the biotechnology Industry. Managers of firms within the biotechnology industry who are contemplating a public offering will be able to proactively address the composition of their boards.

scholarly journals Size of Offer, Over-subscription Ratio and Performance of Malaysian IPOs

2020 ◽  
Author(s):  
Othman Yong ◽  
Puan Yatim ◽  
Ros Zam Zam Sapian
Keyword(s):  
Initial Public Offerings ◽  
Significant Positive Correlation ◽  
Stock Exchange ◽  
Kuala Lumpur ◽  
Public Issue ◽  
Positive Correlation ◽  
Public Offerings ◽  
Long Run ◽  
Initial Return ◽  
And Performance

This paper examines the initial and the long-run performance of initial public offerings (IP0s) stocks listed on the Main Board of the Kuala Lumpur Stock Exchange. This study finds a significant mean initial return and mean over-subscription ratio, even-though not as high as reported in earlier studies. Size of offer is not correlated with the over-subscription ratio. In general, initial returns. are significantly higher than returns for subsequent longer-term holding periods. Mean initial returns among the three types of issue compared are not significantly different from each other Only in the case of offer for sale that we find a significant positive correlation between its over-subscription ratio and its initial return. Offer for sale also shows a positive correlation between its over-subscription ratio and its raw let11111 far day-365, but turns significantly negative for day-910 and day-] 095. In the case of combination of public issue and offer for sale, over-subscription ratio is not significantly correlated with longer- term returns, for either raw or adjusted return. Finally, in the case of public issue, its over-subscription ratio is significantly correlated with its raw return only for day-180 and day-540, and for its adjusted return, the correlation is significant only for day-180 and day-365.  

scholarly journals The Pricing and Performance of Supercharged IPOs

2018 ◽  
Vol 94 (4) ◽  
pp. 245-273 ◽  
Author(s):  
Alexander Edwards ◽  
Michelle Hutchens ◽  
Sonja Olhoft Rego
Keyword(s):  
Initial Public Offerings ◽  
Public Offerings ◽  
Future Performance ◽  
Transaction Structure ◽  
The Future ◽  
New Form ◽  
Tax Benefits ◽  
Pass Through ◽  
And Performance ◽  
Deferred Tax

ABSTRACT This study examines a new form of initial public offerings, “supercharged” IPOs, where a firm-organized pre-IPO as a pass-through entity undergoes a series of transactions that steps-up the adjusted tax basis of the IPO firm's assets. This step-up imposes tax liabilities on pre-IPO owners, but also creates significant future tax benefits for the firm; the average anticipated deferred tax asset is $486 million ($13 per share) for our sample of supercharged IPO firms. Pursuant to tax receivable agreements, supercharged IPO firms pay a large portion of these tax benefits to pre-IPO owners as they are realized in the future. Future firm performance must be sufficiently strong for the IPO firm and the pre-IPO owners to realize the future tax benefits created by the supercharged transaction structure. We hypothesize and provide evidence of higher IPO offer prices and stronger future performance for supercharged IPO firms relative to traditional IPO firms. JEL Classifications: G14; G32; G34; H25.

Information and performance optimization: a study of Indian IPOs during 2005-2012

2017 ◽  
Vol 51 (4) ◽  
pp. 458-471 ◽  
Author(s):  
Sheena Chhabra ◽  
Ravi Kiran ◽  
A.N. Sah ◽  
Vikas Sharma
Keyword(s):  
Initial Public Offerings ◽  
Performance Optimization ◽  
Investment Decision ◽  
Mixed Integer ◽  
Expected Return ◽  
Content Type ◽  
Public Offerings ◽  
The Mean ◽  
And Performance ◽  
Global Investors

Purpose The purpose of this paper is to focus on examining the first day returns of initial public offerings (IPOs) and the role of information on their performance. The study tries to optimize the returns of the new issues during 2005-2012 with risk as a constraint. Design/methodology/approach The initial returns are measured through the market-adjusted excess return and the risk associated with the new issue is measured through underwriters’ reputation. The returns have been optimized through a mixed integer linear problem using the Maple software. Findings The previous studies show that various informational variables affect the listing day returns significantly. The results of the present study indicate that the mean of initial returns for IPOs during 2005-2012 is 18.03 and the mean risk for these issues is 0.46. The findings also suggest that the optimal returns are obtained in the pre-recession era (2005-2008) and the value for the same is 50.02 percent. Originality/value The current study contributes in the investment decisions for global investors as every investor wants to maximize his/her returns. The optimal returns with risk as a constraint will help the investors in improving their investment decision as a prudent investor does not aim solely at maximizing the expected return of an investment but is also interested in optimizing with the minimization of risk.

PENDETEKSIAN EARNINGS MANAGEMENT UNDERPRICING, DAN PENGUKURAN KINERJA PERUSAHAAN YANG MELAKUKAN KEBIJAKAN INITIAL PUBLIC OFFERINGS (IPO) DI INDONESIA (Studi Empires Pada Perusahaan Di BEI)

2007 ◽  
Author(s):  
Anita Anita ◽  
Fivi Anggraini
Keyword(s):  
Earnings Management ◽  
Initial Public Offerings ◽  
Sampling Method ◽  
Stock Exchange ◽  
Market Performance ◽  
Company Performance ◽  
Purposive Sampling ◽  
Public Offerings ◽  
And Performance ◽  
Testing Company

The purpose of research for to detect policy of earnings management to include of moment IPO, to detect phenomenon underpricing on first when share traded in market secunder, testing company performance pasta IPO and testing relation policy of earnings management, underpricing and company performance (finance performance and market performance). This research using secunder data from company executing IPO. Samples of this research using purposive sampling method As much 48 company conducting IPO in Indonesian Stock Exchange in research of during 6 year consisted of 3 year before HIO and 3 year after IPO, so that there is 288 unit analysis.Result from this research that mean, that company executing IPO of indication do policy of earnings management some year before moment IPO by playing component accruals, that company executing IPO experience of underpricing on first when share traded in market secunder, that company executing IPO experience of degradation of performance of finance and performance of market, and there is downhill tendency after IPO. The last if connected third the above phenomenon, in general the researcher cannot prove relation between policy earnings management, phenomenon underpricing, and the company market performance and finance performance conducting IPO.

An Empirical Analysis on IPO Underpricing and Performance of Newly Privatized Firms in China

1998 ◽  
Vol 01 (04) ◽  
pp. 461-479 ◽  
Author(s):  
Sangphill Kim ◽  
Meng Rui ◽  
Peter Xu
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Initial Period ◽  
The Political ◽  
Ipo Underpricing ◽  
Public Offerings ◽  
Privatized Firms ◽  
The Government ◽  
And Performance ◽  
Period Return

Using 45 Initial Public Offerings (IPOs) on the Shanghai Stock Exchange in 1993, we find that the average initial period return is 594 percent or 2.44 percent per day between the offer date and the listing date. Our results support the political persuasion hypothesis that has been postulated in previous studies on IPOs in other emerging markets. An IPO in China is also a newly privatized firm. Based on a subset of the IPO sample, we find significant increases in profitability and productivity after privatization. But the improvement in performance is not strongly related to the percentage of total shares retained or controlled by the government.

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