DIFFERENTIAL INFORMATION AND THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS: AUSTRALIAN EVIDENCE

This paper provides evidence on underpricing in Australia using 340 industrial initial public offerings over the period 1980 to 1990. It aims to explain why underpricing is consistent with rational behaviour by focusing on differential information across IPO firms. We measure differential information along two dimensions, the quality and the quantity of information. We propose that the quality of information is reflected in the reputation of independent advisers to the preparation of the issuing firm's prospectus. Three such independent external advisers are examined: the investigating accountant, the underwriter, and the expert. The results provide strong support for the reputation effect of the underwriter on underpricing. Although there is evidence showing a negative relation between underpricing and the reputation of the investigating accountant and the expert, it is not significant. Our results also support the differential quantity of information hypothesis. Firms with more information available are, on average, less underpriced.     

INFORMATION ASYMMETRY AND THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS: FURTHER EMPIRICAL EVIDENCE

Information Asymmetry is usually assumed in most explanations of the underpricing of initial public offerings (IPOs). In Baron's (1982) model, the underwriter is better informed than the issuing firm concerning the demand for the IPO. The greater uncertainty associated with the demand will lead to a greater underpricing due to the enhanced value of the underwriter's expertise. In the case that the issuer is also an informed investment banker, Baron's hypothesis predicts no underpricing. Our results based on Canadian investment bankers do not support Baron's hypothesis.     

REGULATORY AND PROCEDURAL EFFECTS ON THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS

In this paper, the pricing of initial public offerings (IPOs) is examined from the underwriter's point of view. It is shown that because of the regulations and procedures governing the underwriting and pricing of IPOs, underwriters can maximize expected income by underpricing IPOs. Thus, it is argued that in addition to other feasible explanations of the underpricing phenomenon (e.g., compensation to uninformed investors, insurance against legal liability, etc.), regulatory and procedural factors contribute to the underpricing of IPOs. This is shown to be true both when uninformed investors are present and absent from the market for IPOs.     

CREDIT POLICIES: LESSONS FROM JAPAN AND KOREA

The success of policy-based credit programs in Japan and theRepublic of Korea suggests that credit policy can be an effectiveinstrument for economic development. Why, then, have creditpolicies failed in so many countries, and what factors explaintheir relative success in Japan and Korea? Both economic and institutional factors appear to be importantin the success or failure of credit policies. Essential economicfactors include a reliance on the private sector, a bias towardindustrialization, an orientation toward export production,the encouragement of domestic competition, and a commitmentto price stability. Crucial institutional factors include extensiveand frequent consultation between government and the privatesector, effective monitoring systems, and, most important, aclear and credible plan for economic development. Although severalcountries have included one or more of these factors in theirprograms, the experience of Japan and Korea suggests that acomprehensive network combining all or most of these factorsmay be necessary for the successful implementation of creditpolicies.      

INITIAL PUBLIC OFFERINGS: GOING BY THE BOOK

In the U.S., and increasingly in other countries as well, IPO securities are marketed to investors in a process known as "book-building"—one that amounts to polling institutional investors to establish a demand schedule for the issue and then allotting stock to individual investors according to the strength of their professed interest. Although book-building methods require use of discriminatory tactics that have attracted strong criticism from investors and regulators, this article defends such practices by demonstrating that book-building is more efficient than alternative methods. It effectively allows issuers to increase the net proceeds of their offerings by making better use of information about market demand conditions.
In the process of explaining the efficiency of the book-building method, this article also offers a plausible explanation for a phenomenon that has long puzzled economists: the systematic underpricing of IPOs. The key to the success of a book-building effort lies in the use of a strategic pricing and allocation policy designed to offset the investor's incentive to understate his or her interest in an IPO. By committing to favor investors who provide strong indications of interest with relatively large allocations of underpriced shares, the investment bank can limit the distortion of investor's incentives in bidding and so increase the level of proceeds the issuing firm can expect to generate from its IPO.     

THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS,EX ANTE UNCERTAINTY,AND PROXY SELECTION

This paper reconsiders the prediction that the underpricing of IPOs is increasing in ex ante uncertainty by objectively establishing proxies for ex ante uncertainty on definitional grounds rather than by appealing to intuitive arguments. Based on a sample of 420 U.S. IPOs from the period 1976–1985, the results suggest that there is a hierarchy of proxies. The results also support the prediction of a positive relation between underpricing and ex ante uncertainty. Finally, the results suggest that as the effectiveness of a selected proxy as a measure of ex ante uncertainty increases, so does the strength of the relation between the degree of underpricing and ex ante uncertainty as measured by that proxy.     

REINCORPORATION: MOTIVES AND SHAREHOLDER WEALTH

This study provides evidence on the wealth effects of reincorporation and the association of these wealth effects with motives to change the state of incorporation. There are no wealth effects observed on the announcement of the change for shareholders of corporations that change as part of a set of measures to defend against a pending or possible hostile takeover. However, for corporations that reincorporate without stated antitakeover intentions, a positive reaction is observed at the announcement of the change. These results indicate that the defensive posture assumed by reincorporating may offset other positive effects of the change in corporate charters.     

NEW PUBLIC MANAGEMENT'S CURRENT ISSUES AND FUTURE PROSPECTS

In this paper we describe the main characteristics of NPM and illustrate the current state of affairs in three main areas: (a) the effectiveness of NPM reforms, (b) NPM's impact on planning and control in government entities, and (c) the implementation and use of accrual accounting methods in government. We use the responses of 105 (mostly Dutch) practitioners in government and non‐profit organizations. Most respondents recognize performance improvements, but only a minority attribute these improvements directly to NPM reforms. Improved planning and control systems are seen to have only a limited impact on the work of professionals, while accrual accounting is considered to have only limited potential to support political decision making.     

VALUE FOR MONEY AUDITING IN NEW ZEALAND: COMPETING FOR CONTROL IN THE PUBLIC SECTOR

This paper provides an overview of the changing role of performance or Value for Money (VFM) auditing in the New Zealand public sector. In many countries there has been a strong interest in public sector reform and the place of accounting technologies such as VFM. A theoretical framework, derived from public policy literature, is used to explain the changing role and relevance of VFM auditing in New Zealand. Within the policy process problems, solutions and opportunities are relatively separate streams. Expert groups or epistemic communities compete to define the problem and to advocate their particular solutions. The Office of the Auditor-General is presented as an epistemic community within the New Zealand policy process and the technology of VFM as a solution to the problems of the day. However, the Treasury (NZ) also developed a policy solution involving radical restructure of the public sector, challenging the existing role of VFM. In response, the Audit Office re-defined the role of VFM auditing as a service to the parliamentary select committees. The changing role of VFM illustrates the flexible and the contestable nature of accounting technologies and casts some doubt on the argument that the growth of accounting in the public sector is inevitable.     

BEYOND NEW PUBLIC MANAGEMENT: AGENCIFICATION AND REGULATORY REFORM IN NORWAY

In this paper we describe some trends in the development of regulatory reform in general and the agency form in particular. The focus is on the case of Norway by describing the reform process and some lessons learned. We discuss the development through the prism of different theoretical lenses such as instrumental, cultural and institutional environmental features. Finally, we draw some conclusions and discuss possible future developments beyond New Public Management by using a linear, a cyclical and a dialectical scenario.     

NEW PUBLIC MANAGEMENT: PERSPECTIVES ON PERFORMANCE AND THE USE OF PERFORMANCE INFORMATION

Performance information is a key‐element of NPM, but politicians and managers rarely use this information. On the basis of three case studies, this paper seeks to explain the use of the newly developed performance information. The paper argues that there is a distinction between the customer perspective and the citizen perspective on performance. NPM implies a customer and an internal perspective on performance. These perspectives may be relevant to managers, but politicians are primarily interested in a citizen perspective and a financial perspective. Two situations are identified in which governmental organizations more actively use performance information with a customer perspective and an internal perspective (as implied in NPM): (1) a crisis in the organization's internal processes with political and/or financial consequences and (2) loose coupling of the performance reports to politicians and to managers, which stimulates the information use by both politicians and managers.     

STRINGS ATTACHED: NEW PUBLIC MANAGEMENT, COMPETITIVE GRANT FUNDING AND SOCIAL CAPITAL

This paper first investigates the impact of New Public Management (NPM) practices, particularly competitive grant funding, on Bushcare New South Wales (NSW), an Australian environmental volunteering organisation. Secondly, identifying such local volunteering organisations as repositories of valuable social capital, it explores the link between volunteering and social capital. Using mixed methods and institutional theory, the study reveals that an increased level of professionalism and accountability is required of Bushcare groups, and that local coordinators face a challenge in balancing local, regional and national priorities without sacrificing Bushcare's mission. These dynamics, it is proposed, have potentially serious social capital implications.     

勇立潮头勤创新

党的十七大以来,浙江保险业全面落实科学发展观,认真贯彻保监会的各项工作部署,紧紧围绕浙江“创业富民、创新强省”总战略,严格依照“标本兼治、保稳促调”的总体思路,发展水平不断提升,综合实力显著增强,在服务经济社会建设中发挥了积极作用。当前,浙江经济社会发展面临的不确定因素还很多,机遇与挑战并存。浙江保险业将认真贯彻全国保险工作会议和全省经济工作会议精神,     

新形势下金融改革开放新布局——“一行三会”与金融机构负责人在2013年陆家嘴论坛上的发言摘要

中国人民银行行长周小川加快推进上海国际金融中心建设推动上海成为全球人民币产品创新、交易、定价、结算中心这次国际金融危机爆发后,大家顺应市场需求,积极实施跨境贸易人民币结算试点,有序推进跨境投资人民币结算,稳步开展境外项目人民币贷款业务,加强和深化双边货币合作。目前,