VENTURE CAPITAL AND IPO LOCKUP EXPIRATION: AN EMPIRICAL ANALYSIS

Most initial public offerings (IPOs) feature “lockup” agreements, which bar insiders from selling the stock for a set period following the IPO, usually 180 days. We examine stock price behavior in the period surrounding lockup expiration for a sample of 2,529 firms from 1988 to 1997. We find that lockup expirations are, on average, associated with significant and negative abnormal returns, but the losses are concentrated in firms with venture capital backing. For the venture‐capital‐backed group, the largest losses occur for high‐tech firms and firms with the greatest post‐IPO stock price increases, the largest relative trading volume in the period surrounding expiration, and the highest quality underwriters. JEL classification: G14, G24     

新形势下越南经济发展面临的挑战及战略构想

越南政府期望通过经济的高速增长实现消灭贫穷的目标,但在当前世界经济面临明显的下行风险和全球资本流动性过剩的背景下,加上国内通货膨胀的压力,给越南政府的宏观调控带来了巨大的挑战。本文通过对目前越南经济发展中的宏观环境和金融环境的剖析,从金融制度改革等方面提出治理当前经济发展所面临问题的建议措施。     

An empirical test of the Brennan-Schwartz bond pricing model in the Australian context

This paper presents an empirical test of some aspects of the Brennan and Schwartz arbitrage bond pricing model. Specifically it evaluates the assumed discrete version of the joint interest process for the short and long rates by estimating it for a series of sample periods under varying market conditions. The implications of the specified form of these two interest rates within the context of hypotheses of interest rate behaviour are also examined. The bond valuation model is tested for bond price index data. The model is found to have a consistent estimation error of 10% and predominantly overestimated the actual price index. The performance of the model is not found to be sensitive to the value of the utility dependent parameter.We thank seminar participants at the University of New South Wales, the Australian National University, and participants at the Inaugural International Conference on Asian-Pacific Financial Markets, November 16–18, 1989, the National University of Singapore for many helpful comments and suggestions. We are responsible for any remaining errors.     

Firm agglomeration and local poverty reduction: evidence from an economy in transition

We examine the linkages between firm agglomeration and the welfare of households in Vietnam. We measured firm agglomeration by per capita firm output at the district level and household welfare by per capita income, expenditure, and poverty. We find that firm agglomeration helps households move from the informal sector to the formal sector. As a result, there is a positive effect of firm agglomeration on per capita income, per capita expenditure, and poverty reduction, albeit of a small and time‐decreasing magnitude. The effect of firm agglomeration on per capita expenditure tends to be higher for households with men, younger, and more educated heads than households with women, older, and less educated heads. Households in rural areas and those that do not have crop land are more likely to benefit from firm agglomeration than those living in urban areas and having crop land.     

Does WTO accession matter for the dynamics of foreign direct investment and trade?

The aim of this article is to study the impacts of World Trade Organization accession on the dynamics of foreign direct investment (FDI) and trade in Vietnam. In order to do this, we employ an augmented gravity model and use a panel data set covering bilateral trade and FDI between Vietnam and its 17 most important partner countries, over the period 1990–2008. Firstly, we find that WTO accession has a significantly positive effect both on Vietnam’s imports and on inward FDI. Secondly, even though we find no evidence to demonstrate convincingly that WTO accession influences Vietnam’s exports, this accession seems to indirectly encourage Vietnam’s exports through the FDI channel due to a strong connection between these two.     

Credit Ratings and Earnings Management around IPOs

This study examines the impact of having a credit rating on earnings management (EM) through accruals and real activities manipulation by initial public offering (IPO) firms. We find that firms going public with a credit rating are less likely to engage in income‐enhancing accrual‐based and real EM in the offering year. The monitoring by a credit rating agency (CRA) and the reduced information asymmetry due to the provision of a credit rating disincentivise rated issuers from managing earnings. We also suggest that the participation of a reputable auditing firm is crucial for CRAs to effectively restrain EM. Moreover, we document that for unrated issuers, at‐issue income‐increasing EM is not linked to future earnings and is negatively related to post‐issue long‐run stock performance. However, for rated issuers, at‐issue income‐increasing EM is positively associated with subsequent accounting performance and is unrelated to long‐run stock performance following the offering. The evidence indicates that managers in unrated firms generally manipulate earnings to mislead investors, while managers in rated firms tend to exercise their accounting and operating discretion for informative purposes.     

Enablers and inhibitors of permission-based marketing: A case of mobile coupons

Permission-based marketing is a unique marketing practice that requires consumers' overt consent. Previous studies examined only either positive or negative predictors of adoption of permission-based marketing practices. Thus, the current study proposes and tests both enablers and inhibitors that determine consumers' adoption decision of permissionbased marketing in a context of mobile coupons and aims to provide insights on relative importance of antecedents. A national survey of US consumers (N=611) supported the proposed model. Perceived risk and subjective norm are particularly important for consumers who have never used mobile coupons. Moderating effects of prior experience was also examined. Finding of moderating effects of prior experience in mobile service adoption suggests research implications for future studies.     

Antecedents of Customer Satisfaction and Customer Loyalty for Emerging Devices in the Initial Market of Korea: An Equity Framework

This study investigates the relevant predictors of customer satisfaction and customer loyalty, and explores the group difference by innovativeness or device type, based on equity theory for emerging devices in the initial market of Korea. The results from an online survey of users of emerging devices and structural equation modeling indicate that utilitarian benefit, hedonic benefit, nonmonetary cost, and alternative attractiveness are significant predictors of customer satisfaction, which in turn affects customer loyalty. Hedonic benefit has a stronger relationship with customer satisfaction for more innovative users and nonmonetary cost has a stronger relationship with customer satisfaction for less innovative users. Nonmonetary cost has a negative relationship with customer satisfaction for netbooks; an additional exploratory analysis produced no such evidence for smartphones. These findings suggest managerial implications for customer loyalty regarding emerging devices.     

The ATO Longitudinal Information Files (ALife): A New Resource for Retirement Policy Research

The Australian Taxation Office release of annual longitudinally linked individual tax and superannuation records, known as the ATO Longitudinal Information Files (ALife), opens up opportunities for new research. In this study, we provide an overview of ALife, focusing on its use for retirement income research. To this end, we provide the first longitudinal estimates of superannuation outcomes for 1-year birth cohorts. Results show marked increase in disparity of super balances in the lead-up to retirement as those in the top quartile ramp-up their contributions, possibly to take advantage of the favourable tax treatment of superannuation income in retirement years.