Effects of differential information on the after-market valuation of initial public offerings

This paper examines the after-market for initial public offerings (IPOs), particularly the security valuation effects of structural differences in available information. There is a diversity of information among issuing firms at the time of their offering and particularly under certain market conditions. Because this diversity decreases with time and after-market trading, the IPO market provides an ideal setting for testing errors due to differential information levels in early after-market valuation of IPO firms. We find evidence that during “hot” market conditions and for firms characterized by low levels of available information, the market values of issuing firms are more likely to be overestimated in the immediate after-market. We also find positive overestimation of market values to be more likely for larger IPOs and for those marketed by the less prestigious underwriters.     

The maturity effect,rates of return and the course of U.S. foreign investment

The article addresses the question of whether the downtrend in reported rates of return to U.S. direct investment in Europe, which brought them to approximate equality with U.S. rates about 1970, was authentic or the reflection of bias created by increasing ‘immaturity’ due to the acceleration of the outflow. The answer is relevant to interpretation of the restraint program and its aftermath. Exploiting newly available age distribution data on multinational corporations, the article formulates two approximations to the maturity effect. Although both reflect the imperfect suitability of the data, it is probable that they span the possible range. The result: maturity effects accounted for only a small fraction of the observed downtrend.     

Pluralism in the mass media: Can management participation help?

Concentration and lack of plurality of media control is significant and appears to be increasing. The potential danger to a democracy of a lack of plurality of media control is serious. There are opportunities for greater plurality and freedom of expression through professional employee decision making partcipation. There are practical precedents for professional employee management participation in the media. Therefore, professional media employee management participation deserves to be seriously considered. Limitations of the principle are also considered.Richard P. Nielsen is Associate Professor at the School of Management, Boston College, Chestnut Hill, Mass. Professor Nielsen publishes frequently in the areas of philosophical and social issues in management as well as strategy and consensus building.The author would like to thank Professor William Torbert of Boston College for his helpful criticism of this article.     

Ethics and service work

Service work is now a very wide ranging sector, where some forms of service work have different connotations to others, but some forms are still tainted with the degradations of domestic service. Much of the difference revolves around the personal nature of the service and the expectations of customers towards the service worker. Hence the importance of thinking about the ethics of the service relationship in a modern economy, and the need to put this on the right footing in terms of respect and dignity. The ethics of service work are explored in this article. Prior to this however, the nature of service work and the degree of degradation that can be experienced by those who do this kind of work are identified. It will be argued that service work ought to be morally evaluated according to the degree to which it helps to form and maintain the virtues of employees or whether it leads to the erosion of virtue and the active development of vices.