The Initial Public Offerings of Restaurant Firms: The Case of Industry-Specific Micromarket Capitalization Offerings

We investigate the pricing characteristics of 59 initial public offerings (IPOs) of firms in the restaurant industry. Many of these offers are by extremely small micromarket capitalization companies, ones that are typically excluded from other studies of IPOs. We find that the choice of underwriter and the issuing company's subsequent financial performance significantly affect the level of underpricing and aftermarket performance. Companies that employ small, regional investment banking houses as underwriters fail to attract much investor interest, resulting in less underpricing and poorer aftermarket performance. In addition, investors appear to accurately appraise those firms that subsequently suffer from poor financial performance. This is demonstrated through greater underpricing to compensate investors for the greater perceived risk.     

The Aftermarket Performance of Initial Public Offerings: The Brazilian Experience

ABSTRACT

This article analyzes the behavior of share prices in the first aftermarket year at the moment the company goes public for the first time, specifically in the case of Brazil. First, we present evidence drawn from the international capital markets and how returns may be characterized. Next, we analyze current Brazilian capital markets and returns on shares for 30 companies that went public in the country between January 2004 and July 2006. We found that Brazilian initial public offerings averaged large positive returns both in the short-term and for a one-year period.

RESUMEN. Este trabajo busca evidenciar cómo el precio de las acciones en IPOs tiende a comportarse en el mercado secundario durante el primero año de negociaciones, específicamente en el caso brasileño. En primer lugar, se presentan las evidencias en el mercado internacional de capitales y mostramos que tipo de retornos se suele obtener. Luego, se lleva a cabo un análisis del mercado de capitales brasileño y de la rentabilidad en 30 IPOs, ocurridos entre enero de 2004 y julio de 2006 en el país. Se nota que el desempeño de IPOs en Brasil tiene fuertes tendencias positivas, tanto para el corto plazo como para un año.

RESUMEO. Este estudo analisa o comportamento dos preços de ações no primeiro ano após a abertura de capital de uma empresa, especificamente no caso do Brasil. Primeiramente, apresentamos dados do mercado de capitais internacionais e como os retornos tendem a ser. Depois disto, analisamos o mercado de capitais brasileiro e os retornos das ações de 30 empresas que abriram o capital no país entre janeiro de 2004 e julho de 2006. Constatamos que os lançamentos de ações (IPOs) brasileiros proporcionaram, em média, retornos positivos grandes a curto prazo e também por um período de um ano.     

IPO过程中会计师事务所与承销商的利益分配

过往研究表明,当客户风险较高时,会计师事务所通常会通过提高审计收费来补偿其带来的诉讼风险.本文通过IPO后企业业绩变脸的现象来衡量企业的风险.研究结果表明,在对风险较高的企业进行IPO审计过程中,事务所并不会通过提高审计费用来补偿其风险,但是另一方面,会计师的收费与投行收费之比会显著地提高,尽管这种关系在国有企业IPO项目中会被削弱.     

Foreign Investment in Brazilian Public Offerings: The Role of Board Composition

Recently, foreigners have been responsible for negotiating more than half of the shares issued by the companies listed in the Brazilian Stock Market. In order to understand the characteristics of companies that influence the increase of international financing, the aim of this article was to investigate the relation between foreign investment in public offerings and board composition. We examine data of 183 Brazilian IPOs and subsequent offerings from 2004–2016 using OLS regression. The empirical result suggested that companies that have a foreign director as a board member and are in a special listing segment of B3—bound by rules of corporate governance—tend to attract more foreign investment. This means that foreigners are sensitive to good corporate governance practices when financing Brazilian firms’ IPOs or that issue new shares. Our findings imply that improvements in the corporate governance practice of companies could increase their ability to raise foreign capital.

RESUMERecientemente, más de la mitad de las acciones emitidas por las empresas cotizadas en la Bolsa de Valores brasileña fueron negociadas por extranjeros. El objeto de este estudio consistió en investigar la relación existente entre las inversiones extranjeras en las ofertas públicas y la composición de sus juntas directivas, para entender las características de las empresas que contribuyen a aumentar el financiamiento internacional. Utilizando la regresión de mínimos cuadrados ordinarios dinámicos (MCOD, OLS en inglés), examinamos datos de la Oferta Pública Inicial Brasileña 183 (IPO) así como ofertas subsiguientes del período 2004-2016. El resultado empírico obtenido sugiere que las empresas cuya junta directiva tiene como miembro un director extranjero y constan en un segmento de cotización especial (B3), sujeto a normas de gobernanza corporativa, suelen atraer más inversiones extranjeras. Esto implica que, al financiarlas, los extranjeros son más susceptibles a que las empresas brasileñas que abren su capital o emiten nuevas acciones, usen buenas prácticas de gobernanza corporativa. Nuestros hallazgos sugieren que la implementación de mejoras en las prácticas de gobernanza corporativa de las empresas puede aumentar su financiamiento internacional.

RESUMORecentemente os estrangeiros passaram a ser responsáveis pela negociação de mais da metade das ações emitidas pelas empresas listadas na Bolsa de Valores brasileira. Para entender as características das empresas que influenciam o aumento do financiamento internacional, o presente trabalho tem como objetivo o estudo da relação entre o investimento estrangeiro nas ofertas públicas e a composição das diretorias. Examinamos dados de 183 IPOs (Oferta Pública Inicial) e de ofertas subsequentes, de 2004 a 2016, usando a regressão MQO (OLS na sigla em inglês). O resultado empírico sugere que as empresas que têm um diretor estrangeiro na diretoria e que estão no segmento de listagem especial da B3—sujeitas às normas de governança corporativa—tendem a atrair mais investimentos. Isso significa que os estrangeiros estão alerta quanto às boas práticas de governança ao considerar empresas brasileiras que abrem o capital ou que emitem ações novas. Os nossos achados sugerem que melhorias nas práticas de governança corporativa das empresas podem elevar o financiamento internacional das empresas.     

On the Demand Elasticity of Initial Public Offerings: An Analysis of Discriminatory Auctions

We analyze 52 Taiwanese IPOs that were introduced through discriminatory auctions (you pay what you bid) between December 1995 and October 1998. The evidence suggests that the elasticity of demand for IPOs in Taiwan through discriminatory auctions is relatively flat. The elasticity is significantly negatively correlated with bidders’heterogeneity, which is consistent with the investor heterogeneity hypothesis. We also find that the average winning bidders earn a significant average abnormal return of 7.83% in the post–IPO market. The post–IPO market abnormal return is positively correlated with the demand elasticity, the idiosyncratic risk of stock returns and the institutional participation rate, and is negatively correlated with the auction clearing price, which is consistent with theory. Finally, there is evidence that informed investors have an incentive to shade their demand for IPOs to avoid the winner’scurse. The most aggressive bidders (the top 5% of the winning bidders) on average incur a small loss of 1.64% (not significant) in the market–adjusted initial returns.     

The Impact of Public Support on SMEs' Outward FDI: Evidence from Italy

This paper evaluates the impact of public financial support to the internationalization of small and medium enterprises. We analyze the growth performance of firms that conducted outward foreign direct investments in the period 1994–2008, comparing firms that benefited from public support (380) with a sample of firms that also internationalized their activity in the same period but without any incentive (508). The econometric results, stemming from a two‐step treatment effect model, reveal that incentives are effective in enhancing firms' performance in terms of domestic turnover and productivity growth, especially when they are targeted at smaller and younger firms. Moreover, the effect of the incentives is enhanced for firms that have accumulated international experience.     

“二元”对外直接投资与贸易结构:机理与来自我国的证据

本文针对我国对外直接投资的现实情况,从对外直接投资的二元路径——顺梯度OFDI与逆梯度OFDI(Outward Foreign Direct investment),研究了二元对外直接投资影响贸易结构的机理,并利用我国1984-2008年的数据进行了验证,研究表明,我国对外直接投资较大地促进了我国贸易结构的升级;国内产业结构优化与研发利用率提高均能优化我国贸易结构;汇率水平的变动在我国贸易结构长期调整中并无显著影响。     

Government Public Policy, Regulatory Intervention, and Their Impact on IPO Underpricing: The Case of Malaysian IPOs

This study examines the impact of government initial public offering (IPO) regulation intending on promoting public policy. The study examines the results of the implementation of a Malaysian government policy in 1976, which mandated that at least 30 percent of any new shares on an IPO offer be sold to the indigenous Bumiputera population or to mutual funds owned by them. The study examined the short-run and long-run underpricing of Malaysian IPOs and found that Malaysian IPOs are highly underpriced compared to IPOs in developing countries, creating a market microstructure effect. It also confirmed that the Malaysian government's regulatory intervention in spite of noble public policy intentions appeared to be the significant factor for the emergence of an average first-day underpricing increase of Malaysian IPOs by 61 percent during the period after the regulatory economic policy was instituted. Furthermore, the study found that this high underpricing persists even for the long run, in contrast to the long-run performance of IPOs in the United States.     

Public Export Credit Guarantees and Foreign Trade Structure: Evidence from Austria

Foreign trade is usually not based on cash transactions, but rather sales on credit are the rule. The resulting monitoring costs for lenders and the risk of default on accounts receivable are part of the costs associated with cross‐border goods transactions. Relative to domestic trade credit, cross‐border credit creates trade barriers due to differences in language, business practice, jurisdiction and payment enforceability between trading partners. Export credit insurance has long been a domain of public export credit agencies. Only since the early 1980s private insurance is gaining ground. Using disaggregated panel data for goods exports from Austria over the period 1996 to 2002, we show that public export credit guarantees have a less than proportional positive effect on international trade volume. They predominantly affect the country structure of foreign trade but leave the industry specialisation almost unchanged.     

Board Gender Diversity and Corporate Response to Sustainability Initiatives: Evidence from the Carbon Disclosure Project

This paper investigates the effect of female representation on the board of directors on corporate response to stakeholders’ demands for increased public reporting about climate change-related risks. We rely on the Carbon Disclosure Project as a sustainability initiative supported by institutional investors. Greenhouse gas emissions measurement and its disclosure to investors can be thought of as a first step toward addressing climate change issues and reducing the firm’s carbon footprint. Based on a sample of publicly listed Canadian firms over the period 2008–2014, we find that the likelihood of voluntary climate change disclosure increases with women percentage on boards. We also find evidence that supports critical mass theory with regard to board gender diversity. These findings reinforce initiatives being undertaken around the world to promote gender diversity in corporate governance while demonstrating board effectiveness in stakeholder management.     

The Interplay Between Private and Public Regulations: Evidence from ISO 14001 Adoption Among Chinese Firms

Extant studies on private regulation have not reached a sufficient understanding about the interplay between private and public regulations, due to underdeveloped theoretical framework and the lack of large-sample empirical investigations. Leveraging ISO 14001 adoption among Chinese firms as the research context, the current research draws on the institutional theory to examine how firm’s adoption of ISO 14001 standard, as a specific form of private regulation, affects the incidence of public environmental inspections. To test our arguments, we conduct two empirical studies. Study 1 uses the first-hand data of a corporate social responsibility survey on Chinese manufacturing firms, whereas Study 2 deploys the second-hand longitudinal archival data of the government environmental inspections on Chinese listed firms. Both of the two studies reveal consistent findings that ISO 14001 adoption decreases the incidence of government environmental inspections, and that the effect of ISO 14001 adoption becomes stronger in state-owned enterprises and firms with top management team’s political ties. Our findings are suggestive of a complementary relationship between private and public regulations, in a sense that private regulations can compensate for the weaknesses of public regulations by offering faster, more flexible and cost-efficient means of enforcement, which allows the public authorities to economize on the deployment of public resources to monitor the rest non-compliant firms.     

The Skill Structure of Export Wage Premium: Evidence from Chinese Matched Employer–Employee Data

We study how the wage gap between exporting and non‐exporting firms (export wage premium) differs across skill groups, using unique matched employer–employee data from China. We find robust evidence that exporters pay relatively higher wages than non‐exporters to more educated workers. The differences in export wage premium across education groups are sizable. Further investigations show that the positive correlation between export wage premium and education is more pronounced in sectors with higher scope for quality differentiation. This is consistent with the theory that exporters produce relatively higher quality goods which require relatively higher quality skilled workers.     

Ownership Structure and Insider Trading: Evidence from China

In this paper, we examine the information content of insider transactions in China and analyze how ownership structures shape market reaction to these transactions. We find that the cumulative abnormal return (CAR) to insider purchases is a convex function of the percentage of shares owned by the largest shareholder. Further, the CAR to insider purchases is lower when the largest shareholder is government-related, or when the control rights of the largest shareholder exceed its cash flow rights. We also find that the market reaction to insider purchases is more positive for firms audited by Big4 auditors. However, we do not find a significant relationship between an ownership structure and the market reaction to insider sales. Our results are remarkably robust to alternative model specifications, corporate insider identities, and recent corporate news releases on price-sensitive events. Finally, we show that market reaction to insider purchases is larger for firms with less severe expropriations, as captured by the use of other receivables.     

The Influence of Board Diversity,Board Diversity Policies and Practices,and Board Inclusion Behaviors on Nonprofit Governance Practices

This study examines how and when nonprofit board performance is impacted by board diversity. Specifically, we investigate board diversity policies and practices as well as board inclusion behaviors as mediating mechanisms for the influence of age, gender, and racial/ethnic diversity of the board on effective board governance practices. The empirical analysis, using a sample of 1,456 nonprofit board chief executive officers, finds that board governance practices are directly influenced by the gender and racial diversity of the board and that board inclusion behaviors together with diversity policies and practices mediate the influence of the board’s gender and racial diversity on internal and external governance practices. Additionally, we found an interaction effect that indicates when boards have greater gender diversity, the negative impact of racial diversity on governance practices is mitigated. The findings suggest that board governance can be improved with more diverse membership, but only if the board behaves inclusively and there are policies and practices in place to allow the diverse members to have an impact.     

家族涉入对企业外包决策的影响:来自中国制造业的经验证据

文章利用重庆和浙江两地制造业民营企业的问卷调查数据,实证检验家族涉入与企业外包倾向之间的关系,分析结果表明:第一,现阶段中国家族企业外包倾向强于非家族企业;第二,家族管理权、领导企业的家族代数与家族企业外包倾向之间有显著的正向关系,家族或泛家族信任与家族企业外包倾向之间有显著的负向关系.研究结论对我国家族企业成长实践具有重要指导意义.     

The Impact of Electronic Payments for Vulnerable Consumers: Evidence from Social Security

Vulnerable consumers may face barriers to using electronic payments, especially consumers in “unbanked” households where no member has an account to receive payments. In March 2013, the US Social Security Administration transitioned exclusively to electronic payments, representing a large shift in payment mode mandated at the federal level. This study identifies the size and characteristics of the population impacted by this shift, by linking administrative data on Social Security payments to a nationally representative survey on the use of bank accounts and financial services. We find that the majority of unbanked Social Security recipients took up electronic payments well before the March 2013 deadline. The mandate does not appear to have increased the use of bank accounts. Instead, recipients used electronic payment cards. However, the transition to electronic payments was slowest among the most financially vulnerable households, suggesting a focus on these households as payment methods continue to develop.     

制造业上市公司股权结构对非效率投资的影响

以2012-2014年沪深三年制造业上市公司为样本数据,研究股权结构对非效率投资的影响。实证结果表明:绝大多数的公司都或多或少的有着非效率投资的现象,多数公司存在投资不足的现象,但是当公司国有股持股比例增加时会造成公司的过度投资。第一大股东持股比例越高会造成公司过度投资现象。当终极控制人性质为国有时,公司的非效率投资更有过度投资倾向,为非国有时有投资不足倾向。因此应适当控制国有股在公司中的集中度,形成股东间的监督与制约,防止大股东掏空现象的发生,从而使公司投资决策更加科学化,减少公司非效率投资的发生。