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.     

Determinants of individual engagement in knowledge sharing

Knowledge management systems try to elicit and support the flow of ideas and experiences among groups of employees (sometimes referred to as knowledge communities). Whereas numerous information and communication systems have been developed to support such knowledge exchanges, practical applications have found that technology alone cannot ensure that knowledge will indeed be volunteered and exchanged, and whereas researchers and consultants alike have argued that culture and other human variables constitute key success factors, it is not clear what specific variables are at play, nor what management practices can affect those variables. This exploratory research investigates some of the psychological, organizational and system-related variables that may determine individual engagement in intra-organizational knowledge sharing. Results from a survey of 372 employees from a large multinational show that self-efficacy, openness to experience, perceived support from colleagues and supervisors and, to a lesser extent, organizational commitment, job autonomy, perceptions about the availability and quality of knowledge management systems, and perceptions of rewards associated with sharing knowledge, significantly predicted self-reports of participation in knowledge exchange.     

Performance as a classification criterion of tourist origins and destinations

Portfolio analysis has been used as a tool for the study of market segments, namely of tourist destinations. However, a review of the literature did not identify a single case where the performance variable is adjusted to the nature of the object. This article presents a performance proxy that enables a direct comparison between generating countries (origins) and between destinations. The proposed tool is a component of a model for the identification of priority market segments. The instrument is applied to the 15 member states of the European Union (before its expansion on 1 May 2004), for the period from 1996 to 2001.     

The perceived value of the rural tourism stay and its effect on rural tourist behaviour

Rural tourism (RT) constitutes a valuable tool for the sustainable development of rural areas. This paper explores issues of tourist motivation in RT and develops a specially tailored perceived value (PV) scale for the RT sector. Special attention is given to links between tourists’ motivations, perceived values, and the service and actions by RT providers leading to the sustainability of rural life, culture, economies and environment. Following a literature review, qualitative and quantitative surveys developed a 27-item scale, exploring both the functional and the affective components of the scale. Seven research hypotheses were then tested by quantitative survey work. It was proven that the activities undertaken by the rural enterprise leading to greater rural sustainability are reflected in the PV scale through higher levels of satisfaction and loyalty of the rural tourists. The results of the study reveal that the RT sector has specific characteristics that tourists greatly value and that other specialist tourist markets cannot offer, as highlighted in the contribution made by RT enterprises to rural sustainability. This knowledge can help tailor product development and destination design to suit specific demands and influence communication and promotional activities.     

Credit risk management at retail in Mexico: An econometric improvement in the selection of variables and changes in their characteristics

The early prediction of bad debtors for revolving credits in Mexico is a relevant issue today. The credit behavior econometric model proposed considers the changes in the characteristics of the consolidated accredited and provides better results than those obtained with the methodology utilized by the CNBV on provision matters. The results obtained show that the possibility of replacing the current model, minimizing the expected loss and increasing the ROA per financial institution at a national level by 2.20%, complies with the methodological criteria and the statistical tests in accordance with the Compiled Banking Regulation and Basel II guidelines on credit risk issues.     

Testing for structural breaks in factor loadings: An application to international business cycle

This paper proposes the implementation of the SupWald test of Andrews (1993) to detect structural breaks in the loadings of a static factor model. The procedure is illustrated by testing for structural breaks in the common factors of GDP growth series for a sample of advanced countries from 1950 until 2006.     

Spreading the Word: Transaction Cost Economics in the Conversation of Economics

Transaction cost economics is a key topic in many conversations in business and economics related disciplines, much as a result of Oliver Williamson's intellectual crusade. By claiming a “distinct worldview,” he develops arguments of association and differentiation to established worldviews, like traditional microeconomics, earlier institutionalism, Austrian and radical economics, and also within the new institutional economics itself, in order to advance his theory. His resourcefulness defies straight argumentative decisions, catering to different audiences whilst trying to break new ground. Surely Williamson has not pleased everyone, but his discourse is greatly responsible for placing TCE in the everyday parlance of economics.     

Optimal taxation in the Uzawa–Lucas model with externality in human capital

In this paper we study the optimal policy in the Uzawa–Lucas model with externality in human capital when agents value both consumption and leisure. We find that the government pursuing the first best can achieve its goal by a subsidy which depends on foregone earnings while studying and which is financed through a lump sum tax. Anyway, the optimal policy, that should be designed to provide incentives for agents to devote more time to schooling and cut both on leisure and working, is not unique. There exists an infinite number of combinations of consumption, capital income, labor income and lump sum taxes that can decentralize the first best.     

Candidate stability and probabilistic voting procedures

Summary. We extend the analysis of Dutta, Jackson and Le Breton (Econometrica, 2001) on strategic candidacy to probabilistic environments. For each agenda and each profile of voters preferences over running candidates, a probabilistic voting procedure selects a lottery on the set of running candidates. Assuming that candidates cannot vote, we show that random dictatorships are the only unanimous probabilistic voting procedures that never provide unilateral incentives for the candidates to withdraw their candidacy at any set of potential candidates. More flexible probabilistic voting procedures can be devised if we restrict our attention to the stability of specific sets of potential candidates.Received: 4 February 2003, Revised: 14 September 2004, JEL Classification Numbers: D71, D72.This is a revised version of a chapter of my Ph.D. Dissertation submitted to the Universitat Autónoma de Barcelona. I am indebted to my supervisor Salvador Barberá for his advice and constant support. I am grateful to Dolors Berga and an anonymous referee for their detailed comments and suggestions. I thank José Alcalde, Walter Bossert, Bhaskar Dutta, Lars Ehlers, Jordi Massó, Diego Moreno, Clara Ponsatí, Yves Sprumont, and William Thomson for many helpful comments and discussions. I thank the hospitality of the C.R.D.E. at the Université de Montréal and the Department of Economics of the University of Warwick where parts of this research were conducted. Financial support through Research Grant 1998FI00022 from Comissionat per Universitats i Recerca, Generalitat de Catalunya, Research Project PB98-870 from the Ministerio de Ciencia y Tecnología, and Fundación Barrié de la Maza is gratefully acknowledged.