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Author: Fitriya Fauzi
Publisher:
ISBN:
Category :
Languages : en
Pages : 19
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Book Description
The global financial crisis had major effects on the New Zealand (NZ) capital market, financial system and economy. It prompted responses across the full range of the NZ Securities Commission and the NZ Reserve Bank policies, including amendment of the Securities Act 2009, monetary policy, liquidity management and prudential policies. This paper investigates the impact of global financial crisis on short-term performance of New Zealand firms' Initial Public Offering (IPOs) for the period before, during and after the crisis. Using New Zealand firms' IPOs from 2006 to 2010, this study employs an event study method which applies market adjusted return and market model to calculate abnormal returns. Two-sample mean-comparison test and the Multivariate Regression Model (MVRM) are used in this study. The result reveals that there is a significant difference between short-term IPOs' performance before, during and after the global financial crisis. Further, the MVRM result supports the two-sample mean-comparison test result in which 2008 and 2009 periods have a negative significant impact on abnormal returns, suggesting that it has underperformed the average market returns. This study provides recent evidence for New Zealand IPOs' short-run performance during the global financial crisis. A study of New Zealand is interesting as most previous studies consider mature markets like the US and the UK.
Author: Fitriya Fauzi
Publisher:
ISBN:
Category :
Languages : en
Pages : 19
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Book Description
The global financial crisis had major effects on the New Zealand (NZ) capital market, financial system and economy. It prompted responses across the full range of the NZ Securities Commission and the NZ Reserve Bank policies, including amendment of the Securities Act 2009, monetary policy, liquidity management and prudential policies. This paper investigates the impact of global financial crisis on short-term performance of New Zealand firms' Initial Public Offering (IPOs) for the period before, during and after the crisis. Using New Zealand firms' IPOs from 2006 to 2010, this study employs an event study method which applies market adjusted return and market model to calculate abnormal returns. Two-sample mean-comparison test and the Multivariate Regression Model (MVRM) are used in this study. The result reveals that there is a significant difference between short-term IPOs' performance before, during and after the global financial crisis. Further, the MVRM result supports the two-sample mean-comparison test result in which 2008 and 2009 periods have a negative significant impact on abnormal returns, suggesting that it has underperformed the average market returns. This study provides recent evidence for New Zealand IPOs' short-run performance during the global financial crisis. A study of New Zealand is interesting as most previous studies consider mature markets like the US and the UK.
Author: Emmet King
Publisher:
ISBN:
Category :
Languages : en
Pages : 51
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Book Description
This paper takes the first opportunity to study the impact of the recent financial crisis on the stock price performance of initial public offerings (IPOs) in the short and long run. We conduct an analysis of 588 firms newly listed on the U.S. stock markets over the period 2003- 2010. We find little evidence of the crisis having affected the average level of underpricing. Measuring 3-year buy-and-hold abnormal returns by benchmarking IPOs against portfolios of matched control firms, our results show the crisis to have had a strong positive impact on long-term performance. While firms that go public during non-crisis years are shown on average to underperform by 22%, crisis IPOs significantly outperform the benchmark by 26%. This effectively results in an average difference of 48% in abnormal returns between the two periods after 3 years. We conclude from our analysis that the market is prone to severe overreactions, caused by investor optimism/pessimism and herding behaviour. Our findings thus provide evidence against the Efficient Market Hypothesis in its semi-strong form.
Author: Dustin Martin Brandt
Publisher: Igel
ISBN: 9783954853694
Category :
Languages : en
Pages : 130
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Book Description
This study aims to analyse whether PE-backed IPOs in the UK in a post-financial crisis period retain to show first day underpricing, as it is true for average IPOs. However, more importantly is to find whether consisent with Johannson (2011), who found that European PE-backed IPOs have less underpricing, 4.67% compared to 16.40% in case of average IPOs, in paricular PE-backed IPOs in the UK show less underpricing than their non-backed counterparts. In the past, that is found true for PE-backed IPOs on the LSE between 1992 and 2005, and PE-backed IPOs on the LSE and the Alternative Investment Market (AIM) between 2011 and 2011. Hence, the first research question is: Do PE-backed IPOs in the UK show less underpricing on the initial day than non-sponsor backed IPOs in a post-financial crisis period? And secondly, do PE-backed IPOs in the UK in the long-run outperform non-sponsor backed IPOs in post-financial crisis period? One rationale is to examine whether equity markets experienced structural changes which might potentially affect the performance of PE-backed IPOs, which were deemed as such with superior returns. From a practical perspective, this study aims to make a contribution to investors who consider investing in equities in that sense, that it allows to better understand the aftermarket performance of PE-backed IPOs in the UK in a period after a major global financial crisis.
Author: Financial Crisis Inquiry Commission
Publisher: Cosimo, Inc.
ISBN: 1616405414
Category : Political Science
Languages : en
Pages : 692
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Book Description
The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.
Author: Bjørn Espen Eckbo
Publisher: Elsevier
ISBN: 0080488919
Category : Business & Economics
Languages : en
Pages : 559
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Book Description
Judging by the sheer number of papers reviewed in this Handbook, the empirical analysis of firms’ financing and investment decisions—empirical corporate finance—has become a dominant field in financial economics. The growing interest in everything “corporate is fueled by a healthy combination of fundamental theoretical developments and recent widespread access to large transactional data bases. A less scientific—but nevertheless important—source of inspiration is a growing awareness of the important social implications of corporate behavior and governance. This Handbook takes stock of the main empirical findings to date across an unprecedented spectrum of corporate finance issues, ranging from econometric methodology, to raising capital and capital structure choice, and to managerial incentives and corporate investment behavior. The surveys are written by leading empirical researchers that remain active in their respective areas of interest. With few exceptions, the writing style makes the chapters accessible to industry practitioners. For doctoral students and seasoned academics, the surveys offer dense roadmaps into the empirical research landscape and provide suggestions for future work. *The Handbooks in Finance series offers a broad group of outstanding volumes in various areas of finance *Each individual volume in the series should present an accurate self-contained survey of a sub-field of finance *The series is international in scope with contributions from field leaders the world over
Author: Tim Jenkinson
Publisher: Oxford University Press, USA
ISBN: 9780198295990
Category : Business & Economics
Languages : en
Pages : 264
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Book Description
Going Public investigates why companies routinely underprice themselves as they try to list themselves on the stock exchange. They subsequently underperform over the long-term and, in Going Public, the authors explore these 2 phenomena in plain English.
Author: Patrick T. Harker
Publisher: Cambridge University Press
ISBN: 9780521777674
Category : Business & Economics
Languages : en
Pages : 516
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Book Description
The efficient operation of financial intermediaries--banks, insurance and pension fund firms, government agencies and so on--is instrumental for the efficient functioning of the financial system and the fueling of the economies of the twenty-first century. But what drives the performance of these institutions in today's global environment? In this volume, world-renowned scholars bring their expertise to bear on the issues. Primary among them are the definition and measurement of efficiency of a financial institution, benchmarks of efficiency, identification of the drivers of performance and measurement of their effects on efficiency, the impact of financial innovation and information technologies on performance, the effects of process design, human resource management policies, as well as others.
Author: Ms.May Y Khamis
Publisher: International Monetary Fund
ISBN: 1589065107
Category : Business & Economics
Languages : en
Pages : 28
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Book Description
Departmental papers are usually focused on a specific economic topic, country, or region. They are prepared in a timely way to support the outreach needs of the IMF’s area and functional departments.
Author: Michelle Lowry
Publisher:
ISBN: 9781680833416
Category : Electronic books
Languages : en
Pages : 166
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Book Description
The purpose of this monograph is to provide an overview of the IPO literature since 2000. The fewer numbers of companies going public in recent years has raised many questions regarding the IPO process, in both academic and regulatory circles. As we all strive to understand these changes in the market, it is especially important to understand the dynamics underlying the IPO process. If the process of going public is too costly or the IPO mechanism is plagued by too many conflicts of interest among the various intermediaries, then private companies may rationally choose other methods of raising capital. In a related vein, it is imperative that new regulations not be based on research focusing solely on large, more mature firms. Newly public firms have unique characteristics, and an increased understanding of such issues will contribute positively to well-functioning public markets and further growth of the entrepreneurial sector. We also provide a detailed guide to researchers on how to obtain a research-quality sample of IPOs, from standard data sources. Related to this, we tabulate important corrections to these standard data sources.
Author: Philippe Espinasse
Publisher: Hong Kong University Press
ISBN: 9888455842
Category : Business & Economics
Languages : en
Pages : 257
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Book Description
In this groundbreaking guide, former investment banker Philippe Espinasse explains the process of gathering cornerstone investors in connection with IPOs and other equity offerings. Using his trademark simple and jargon-free language, he details the targeting strategies, documentation, marketing, and allocation of shares and other securities to these reference shareholders, and analyses why and how they make or break today’s new listings across Asia’s key markets. This essential guide—and the first of its kind—contains key information on the legal framework for cornerstone investors in Hong Kong, Malaysia, and Singapore, and offers practical advice on how best to structure and conduct a cornerstone investor offering. It also discusses some of the more controversial issues associated with the practice of cornerstone investment and includes many real-life examples of cornerstone deals, sample documents, cornerstone investor profiles, an investor target list, and a comprehensive glossary. ‘There is no better person to shed light on the opaque world of cornerstone investing in Asian IPOs. Philippe Espinasse writes clearly, substantively, and expertly.’ —Jasper Moiseiwitsch, Asia companies and markets news editor, Financial Times ‘As engaging as it is informative. Espinasse has cut through legalese and jargon to create a pragmatic overview of this widely misunderstood, and distinctly Asian, investment banking concept. Packed with recent examples, this book doesn’t just teach you about cornerstones; it also provides an insider’s take of the region’s capital markets hubs.’ —Danielle Myles, capital markets editor, The Banker ‘Cornerstone investors have taken centre stage in Hong Kong’s IPO market. This book is needed now more than ever.’ —Matthew Thomas, Asia bureau chief, Euromoney Institutional Investor
