scholarly journals IPO Underpricing After the 2008 Financial Crisis: A Study of the Chinese Stock Markets

2018 ◽  
Vol 10 (8) ◽  
pp. 2844 ◽  
Author(s):  
Rui Li ◽  
Wei Liu ◽  
Yong Liu ◽  
Sang-Bing Tsai
Keyword(s):  
Financial Crisis ◽  
Initial Public Offering ◽  
Small Firms ◽  
Effective Means ◽  
Ipo Underpricing ◽  
2008 Financial Crisis ◽  
Before And After ◽  
The Difference ◽  
The 2008 Financial Crisis ◽  
Public Offering

A firm’s capability of raising funding is closely related to its sustainable development. With a more efficient allocation of funding among the whole society, social resources will be better utilized. Initial Public Offering (IPO) can indeed be an effective means of raising capital for corporate ventures. Using 1069 firms which completed IPOs on Chinese stock exchanges between 1st January 2004 and 1st January 2013, we investigate the difference in IPO underpricing before and after the 2008 financial crisis. Based on OLS regression models, we find that the IPOs are less underpriced in the post-crisis period. We examine the moderating effects of firm size on the difference in IPO underpricing between pre- and post-crisis periods, finding that small firms experienced less IPO underpricing than large firms after the financial crisis. After applying different model specifications such as Robust and OProbit regressions, the results remain consistent. Our study contributes to understanding the dynamics and influences of the financial crisis on firms’ IPO cost from the perspective of information asymmetry.

scholarly journals Risk Analysis of World Major Stock Index Before and After the 2008 Financial Crisis – Based on GARCH-VaR Approach

2018 ◽  
Vol 9 (2) ◽  
pp. 39
Author(s):  
Maoguo Wu ◽  
Yanyuan Wang
Keyword(s):  
Financial Crisis ◽  
Time Lag ◽  
Policy Implications ◽  
Stock Index ◽  
2008 Financial Crisis ◽  
Before And After ◽  
The 2008 Financial Crisis ◽  
Global Stock Markets ◽  
Stock Indexes ◽  
Global Stock

In 2008, the U.S. subprime mortgage crisis overwhelmed the global financial system, which sparked drastic fluctuation of world stock index. Subsequently, the risk of investment in global stock markets has augmented considerably. Applying the VaR approach based on GARCH model, this paper attempts to thoroughly investigate the volatility of S&P 500, NASDAQ, DJIA, GDAXI and CSI 300. For the purpose of comparison, data are divided into 2 parts: before the 2008 financial crisis and after the 2008 financial crisis. Thus, the paper elaborates impacts of the 2008 financial crisis on global stock index. In addition, this paper puts forward policy implications of risk control in Chinese financial market. According to empirical results, before the 2008 financial crisis, S&P 500, NASDAQ and DJIA were relatively stable; GDAXI was slightly fluctuant while CSI 300 fluctuated dramatically. When confronting with the 2008 financial crisis, the volatility of three American stock indexes surged at once, even exceeding that of CSI 300. GDAXI, however, experienced a time lag in the increase of volatility. So far, S&P 500, NASDAQ, DJIA and GDAXI have gradually recovered. On the contrary, CSI 300 still undulates frequently and erratically.

Small States, Nationalism and Institutional Capacities: An Explanation of the Difference in Response of Ireland and Denmark to the Financial Crisis

2015 ◽  
Vol 56 (1) ◽  
pp. 143-174 ◽  
Author(s):  
John L. Campbell ◽  
John A. Hall
Keyword(s):  
Financial Crisis ◽  
Market Economy ◽  
Banking Sector ◽  
Financial Burden ◽  
State Intervention ◽  
Small States ◽  
2008 Financial Crisis ◽  
The Difference ◽  
The 2008 Financial Crisis ◽  
Liberal Market Economy

AbstractThis paper uses theories of small states (e.g. Katzenstein) and nationalism (e.g. Gellner) to explain why Denmark and Ireland responded to the 2008 financial crisis in different ways. In Denmark, a coordinated market economy with considerable corporatism and state intervention, the private sector shouldered much of the financial burden for rescuing the banking sector. In Ireland, a liberal market economy without much corporatism or state intervention, the state shouldered the burden. The difference stems in large part from the fact that Denmark had comparatively thick institutions and a strong sense of nationalism whereas Ireland did not. Lessons for the theories of small states and nationalism are explored.

The Impact of Global Financial Crisis on IPO Underpricing in Malaysian Stock Market

2018 ◽  
Vol 21 (04) ◽  
pp. 1850023 ◽  
Author(s):  
Hon-Wei Leow ◽  
Wee-Yeap Lau
Keyword(s):  
Financial Crisis ◽  
Initial Public Offering ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Ipo Underpricing ◽  
Dummy Variable ◽  
The Global Financial Crisis ◽  
Public Offering ◽  
The Impact ◽  
The Relationship

This study examines the impact of the Global Financial Crisis (GFC) on Initial Public Offering (IPO) underpricing in the context of an emerging market from January 2006 to December 2011. Models consist of hierarchical and dummy variable regressions have been evaluated. Our results show, firstly, by comparison between the pre-GFC, GFC and post-GFC periods, it can be observed that IPOs initial returns (offer-to-close) are generally lower due to the crisis. Secondly, IPO underpricing provides an average of 17–25% of initial returns in the pre-GFC period, 1–3% during GFC period, and 3–7% in the post-GFC period. Thirdly, the financial crisis does not act as a moderator that worsens the relationship between underpricing of IPO and oversubscription ratio. Lastly, this study dispels the notion that investors should totally shun IPO during crisis period as there are still positive initial returns among the new issues. To the authors’ knowledge, this is the first study on the impact of the GFC on IPO underpricing in Malaysia.

COMPARATIVE TFP GROWTH BETWEEN GCC CONVENTIONAL AND ISLAMIC BANKS BEFORE AND AFTER THE 2008 FINANCIAL CRISIS

2020 ◽  
pp. 1-20
Author(s):  
AZZEDDINE AZZAM ◽  
BELAID RETTAB
Keyword(s):  
Financial Crisis ◽  
Technical Change ◽  
Islamic Banks ◽  
2008 Financial Crisis ◽  
Before And After ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The 2008 Financial Crisis ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

This paper measures and compares the performance of GCC conventional and Islamic banks in terms of total factor productivity growth (TFPG) before and after the 2008 financial crisis. The sources of TFPG are technical change, size economies, and observed asset growth. Technical change and size economies are measured by estimating a translog cost function and factor share equations. Results show that Islamic banks outperformed conventional banks overall and across different sizes. To the extent that product and process innovation improves TFPG, Islamic banks have weathered the 2008 financial crisis by being more innovative than conventional banks.

scholarly journals ANALISA CAPITAL ADEQUACY RATIO (CAR), RETURN ON ASSET (ROA), NON PERFORMING FINANCING (NPF), DAN FINANCING TO DEPOSIT RATIO (FDR) BANK PANIN DUBAI SYARIAH SEBELUM DAN SESUDAH IPO PERIODE 2011-2017

2020 ◽  
Vol 6 (2) ◽  
pp. 228
Author(s):  
Dhevy Ulinnuha Sholichah ◽  
Dian Filianti
Keyword(s):  
Financial Performance ◽  
Initial Public Offering ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Rank Test ◽  
Capital Adequacy Ratio ◽  
Before And After ◽  
Significance Levels ◽  
The Difference ◽  
Public Offering

This research analyzed the difference between sharia bank’s financial performance before and after IPO period 2011-2017. Common Sharia Bank that match the criteria is Panin Dubai Syariah Bank. Data used in this research is secondary data that collected from bank’s annual financial statements. Financial ratios used as variables in this research are Capital Adequacy Ratio (CAR), Non Performing Financing (NPF), Return On Assets (ROA), and Financing to Deposit Ratio (FDR). The results that tested using Paired T-Test and Wilcoxon Signed Rank Test shows that CAR, NPF, ROA, and FDR on Panin Dubai Syariah Bank indicate there’s significantly difference between before and after IPO. The significantly differences indicated using significance levels of 1%, 5%, and 10%.Keywords: Sharia Bank, Financial Performance, CAR, NPF, ROA, FDR, Initial Public Offering

Comparing state pension reforms in EU countries before and after 2008

2017 ◽  
Vol 33 (3) ◽  
pp. 225-239 ◽  
Author(s):  
Aaron George Grech
Keyword(s):  
Financial Crisis ◽  
Negative Impact ◽  
Reform Process ◽  
2008 Financial Crisis ◽  
Pension Reforms ◽  
Permanent Change ◽  
Eu Countries ◽  
Before And After ◽  
The 2008 Financial Crisis ◽  
State Pension

AbstractMany EU countries have been carrying out substantial state pension reforms since the mid-1990s. This article studies whether the reforms that were carried out in ten EU countries before and after the 2008 financial crisis are different. This is done through an analysis of the different elements of these reforms and also by comparing pension entitlements after each set of reforms. The main conclusion is that the pre-crisis reforms were much stronger and had a more negative impact on women than the post-crisis reforms. It is harder to determine whether this represents a temporary break in the reform process or a permanent change in the orientation of pension reforms in these ten countries.

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