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Offerings
Kinds of Offerings Selected AbstractsPRODUCT OFFERING, PRICING, AND MAKE-TO-STOCK/MAKE-TO-ORDER DECISIONS WITH SHARED CAPACITYPRODUCTION AND OPERATIONS MANAGEMENT, Issue 3 2002GREGORY DOBSON In an era of mass customization, many firms continue to expand their product lines to remain competitive. These broader product lines may help to increase market share and may allow higher prices to be charged, but they also cause challenges associated with diseconomies of scope. To investigate this tradeoff, we considered a monopolist who faces demand curves, which for each of its potential products, decline with both price and response time (time to deliver the product). The firm must decide which products to offer, how to price them, whether each should be make-to-stock (mts) or make-to-order (mto), and how often to produce them. The offered products share a single manufacturing facility. Setup times introduce disceonomies of scope and setup costs introduce economies of scale. We provide motivating problem scenarios, model the monopolist's problem as a non-linear, integer programming problem, characterize of the optimal policy, develop near-optimal procedures, and discuss managerial insights. [source] The Influence of Top Management Team Heterogeneity on the Capital Raised through an Initial Public OfferingENTREPRENEURSHIP THEORY AND PRACTICE, Issue 3 2008Monica A. Zimmerman A significant body of research exists on the top management teams (TMTs) of established firms and specifically on the heterogeneity of TMTs of established firms. Little research exists, however, on the heterogeneity of TMTs of firms in the early stages of their existence. In this study, I examine the relationship among TMT heterogeneity and the capital raised by the firm through its initial public offering (IPO). I argue that TMT heterogeneity provides a signal to potential investors about the quality of the IPO and hence is associated with greater capital accumulations. My findings suggest that heterogeneity in the TMT's functional background and educational background is associated with greater capital raised through an IPO. [source] The Performance of Internet Firms Following Their Initial Public OfferingFINANCIAL REVIEW, Issue 4 2002Jarrod Johnston We find that initial returns were more favorable for Internet initial public offerings (IPOs) than non,Internet firm IPOs. Since the demise of the Internet sector, the underpricing of Internet,firm IPOs is not significantly different from other IPOs. Initial returns of Internet firms are positively and significantly related to underwriter prestige and to pre,IPO market conditions. However, initial returns after the demise of the Internet sector are not significantly related to these characteristics. The aftermarket performance of Internet firms is initially favorable but weakens over time. Firms that experienced higher initial returns during the strong Internet cycle experience weaker aftermarket performance. [source] Ambiguous incorporations: microfinance and global governmentalityGLOBAL NETWORKS, Issue 2 2010ROB AITKEN Abstract In the spring of 2007 an event dramatically reshaped conversations relating to microfinance. This event was the Initial Public Offering (IPO) of Mexico's largest microfinance organization, Compartamos. The IPO, as this article suggests, is indicative or a broader trend through which microfinance is increasingly becoming financialized, increasingly becoming governable as a financial object. This is important at one level because it crystallizes some of the key issues at stake as microfinance becomes increasingly more reliant on global capital markets. At another level, however, the Compatarmos case is significant because of the conceptual issues it raises in relation to global finance. The main argument I put forward in this article is that the Compatarmos case , and the process of financialization it represents , is important because it allows us to glimpse global finance, and the question of global financial governance, as a decentred process in formation. Drawing on a Foucauldian notion of governmentality, I argue that the Compatarmos case orbits around two processes; processes of incorporation and differentiation. In this context, the Compartamos case implies the importance of analyses that can make global finance visible as a diverse and mundane object that is never settled in any final kind of way. [source] Risk Segmentation Related to the Offering of a Consumer-Directed Health Plan: A Case Study of Humana Inc.HEALTH SERVICES RESEARCH, Issue 4p2 2004Laura A. Tollen Objective. To determine whether the offering of a consumer-directed health plan (CDHP) is likely to cause risk segmentation in an employer group. Study Setting and Data Source. The study population comprises the approximately 10,000 people (employees and dependents) enrolled as members of the employee health benefit program of Humana Inc. at its headquarters in Louisville, Kentucky, during the benefit years starting July 1, 2000, and July 1, 2001. This analysis is based on primary collection of claims, enrollment, and employment data for those employees and dependents. Study Design. This is a case study of the experience of a single employer in offering two consumer-directed health plan options ("Coverage First 1" and "Coverage First 2") to its employees. We assessed the risk profile of those choosing the Coverage First plans and those remaining in more traditional health maintenance organization (HMO) and preferred provider organization (PPO) coverage. Risk was measured using prior claims (in dollars per member per month), prior utilization (admissions/1,000; average length of stay; prescriptions/1,000; physician office visit services/1,000), a pharmacy-based risk assessment tool (developed by Ingenix), and demographics. Data Collection/Extraction Methods. Complete claims and administrative data were provided by Humana Inc. for the two-year study period. Unique identifiers enabled us to track subscribers' individual enrollment and utilization over this period. Principal Findings. Based on demographic data alone, there did not appear to be a difference in the risk profiles of those choosing versus not choosing Coverage First. However, based on prior claims and prior use data, it appeared that those who chose Coverage First were healthier than those electing to remain in more traditional coverage. For each of five services, prior-year usage by people who subsequently enrolled in Coverage First 1 (CF1) was below 60 percent of the average for the whole group. Hospital and maternity admissions per thousand were less than 30 percent of the overall average; length of stay per hospital admission, physician office services per thousand, and prescriptions per thousand were all between 50 and 60 percent of the overall average. Coverage First 2 (CF2) subscribers' prior use of services was somewhat higher than CF1 subscribers', but it was still below average in every category. As with prior use, prior claims data indicated that Coverage First subscribers were healthier than average, with prior total claims less than 50 percent of average. Conclusions. In this case, the offering of high-deductible or consumer-directed health plan options alongside more traditional options caused risk segmentation within an employer group. The extent to which these findings are applicable to other cases will depend on many factors, including the employer premium contribution policies and employees' perception of the value of the various plan options. Further research is needed to determine whether risk segmentation will worsen in future years for this employer and if so, whether it will cause premiums for more traditional health plans to increase. [source] ANGOLA: Huge Bond OfferingAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 4 2009Article first published online: 4 JUN 200 No abstract is available for this article. [source] Offering to provide child care for preschool grandchildren: Grandparents behaving generativelyAUSTRALASIAN JOURNAL ON AGEING, Issue 1 2010Chris J Materne No abstract is available for this article. [source] Analyst Coverage and the Cost of Raising Equity Capital: Evidence from Underpricing of Seasoned Equity Offerings,CONTEMPORARY ACCOUNTING RESEARCH, Issue 3 2008Robert M. Bowen First page of article [source] The Association between Auditor Choice, Ownership Retained, and Earnings Disclosure by Firms Making Initial Public Offerings,CONTEMPORARY ACCOUNTING RESEARCH, Issue 1 2002Paul A. Copley Abstract Using a system of three simultaneous equations, we test the predictions of Datar, Feltham, and Hughes 1991 and Hughes 1986 between auditor choice, earnings disclosures, and retained ownership in U.S. firms making initial public offerings of securities. Using a sample of initial public offerings between 1990 and 1997, we find that the demand for high-quality auditors increases with firm risk. Additionally, we find that auditor choice, earnings disclosure, and risk are determinants of retained ownership, which is consistent with the predictions of Datar et al. and Hughes that auditor choice and direct disclosure are substitute signals for ownership retention. Further, our results suggest that the signals chosen (i.e., retained ownership, auditor choice, and disclosure) are related through their cost structures and are chosen jointly to minimize the overall cost to the entrepreneur. [source] Initial Public Offerings: IntroductionEUROPEAN FINANCIAL MANAGEMENT, Issue 4 2009Tim Jenkinson Guest Editor No abstract is available for this article. [source] The Pricing of French Unit Seasoned Equity OfferingsEUROPEAN FINANCIAL MANAGEMENT, Issue 1 2001Pierre Chollet Units are bundles of common stock and warrants. By issuing units, firms precommit to a future and uncertain seasoned offering at the exercise price of the warrants. This study shows that the issuance of units seasoned offerings in France is accompanied by significant abnormal returns of on average 9,12%, depending on the computing methods. Underpricing increases with the risk of the issuer and the relative size of the future seasoned equity issue linked to warrant exercises. Our results are consistent with our signaling hypothesis. [source] Moving from Private to Public Ownership: Selling Out to Public Firms versus Initial Public OfferingsFINANCIAL MANAGEMENT, Issue 1 2008Annette B. Poulsen We study two alternative means to move assets from private to public ownership: through the acquisition of private companies by firms that are public (sellouts) or through initial public share offerings (IPOs). We consider firm-specific characteristics for 1,074 IPO and 735 sellout firms to identify differences in growth, capital constraints, and asymmetric information between the two types of transactions. Our results suggest that firms move to public ownership through an IPO when they have greater growth opportunities and face more capital constraints. We provide a better understanding of the firm-specific characteristics that lead firms to go public. [source] Rights Offerings and Corporate Financial ConditionFINANCIAL MANAGEMENT, Issue 1 2006Nancy D. Ursel Certain American industrial firms still use equity rights offerings. Most of these offerings are uninsured. I examine firms' financing decisions, and develop the explanation that rights offerings are used by firms in financial distress with difficulty accessing underwriting services. These firms have little to lose from the costs of adverse selection that accompany the lack of underwriter certification of uninsured rights offerings. Probit analysis of 660 seasoned NYSE, Amex, and Nasdaq equity issues between 1983,1999 yields results consistent with my explanation. There is no evidence that variables previously linked to rights usage (e.g., ownership concentration) continue to be relevant to the issue method choice. [source] Does an Industry Effect Exist for Initial Public Offerings?FINANCIAL REVIEW, Issue 4 2003Aigbe Akhigbe G14 Abstract We examine the impact of initial public offerings (IPOs) on rival firms and find that the valuation effects are insignificant. This insignificant reaction can be explained by offsetting information and competitive effects. Significant positive information effects are associated with IPOs in regulated industries and the first IPO in an industry following a period of dormancy. Significant negative competitive effects are associated with larger IPOs in competitive industries, those in relatively risky industries, those in high-performing industries, and those in the technology sector. IPO firms that use the proceeds for debt repayment appear to represent a more significant competitive threat to rival firms relative to IPO firms that use their proceeds for other purposes. [source] Country-Specific Risk and the Cost and Benefit of Audit Quality: Evidence from Israeli Initial Public Offerings in the United StatesINTERNATIONAL JOURNAL OF AUDITING, Issue 3 2002Edward B. Douthett Jr. We examine audit fees and returns to auditor reputation for Israeli entrepreneurs making initial public offerings (IPOs) of equity in U.S. capital markets. We find that the cost of audit quality in terms of audit fees is higher, and the benefit of audit quality in terms of IPO proceeds is lower for a sample of Israeli IPOs matched to a control sample of U.S. IPOs. The results suggest that the higher levels of country-specific risk in Israel are modifying the cost and benefits of audit quality for Israeli entrepreneurs selling securities in the U.S. [source] Order Flow Patterns around Seasoned Equity Offerings and their Implications for Stock Price Movements,INTERNATIONAL REVIEW OF FINANCE, Issue 1-2 2005SAHN-WOOK HUH ABSTRACT In this study, we employ order imbalance measures to provide evidence that there is cross-sectional heterogeneity in investor reactions to seasoned equity offerings (SEOs). The normally positive relation between imbalances and returns disappears for trade number imbalances but remains intact for dollar imbalances following SEOs. The return-imbalance delinkage is most pronounced for SEO stocks in which institutions (non-institutions) are net sellers (buyers). We also find that the SEO portfolio in which large institutional investors are net sellers strongly underperforms the complementary portfolio in which they are net buyers. [source] The Effects of Pre-issue Information Releases on Seasoned Equity OfferingsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 9-10 2008Yi-Mien Lin Abstract:, Because of information asymmetry, managers tend to make pre-issue disclosures to reduce the costs of seasoned equity offerings. This paper discusses whether pre-issue information releases of major investments, financial forecast revisions and dividends help the investors to anticipate seasoned equity offerings and assist in reducing the information asymmetry when the managers announce equity issues. We analyze price and trading volume reactions to equity issue announcements to infer the degree of information asymmetry. Consistent with our expectations, we find that these three types of pre-issue disclosures can help investors to anticipate equity issues. However, after controlling for anticipation and cross-sectional variation in uncertainty, we find none of the disclosures are capable of reducing the price drop at issue announcement, and only the disclosures of increased cash dividends have the effect of reducing the negative trading volume reactions. In addition, both the price and trading volume reactions are not related to the intervals between the disclosures and the issue announcements. [source] The Long Run Share Price Performance of Malaysian Initial Public Offerings (IPOs)JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 1-2 2007Nurwati A. Ahmad-Zaluki Abstract:, This paper investigates the long run share price performance of 454 Malaysian IPOs during the period 1990 to 2000. In contrast with developed markets, significant overperformance is found for equally-weighted event time CARs and buy-and-hold returns using two market benchmarks, though not for value-weighted returns or using a matched company benchmark. The significant abnormal performance also disappears under the calendar-time approach using the Fama-French (1993) three factor model. While the long run performance of Main and Second Board IPOs does not differ, the year of listing, issue proceeds and initial returns are found to be performance-related. [source] Why do Underwriters Charge Low Underwriting Fees for Initial Public Offerings in Taiwan?JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2006Hsuan-Chi Chen Abstract:, In Taiwan, underwriting fees for initial public offerings (IPOs) are extremely low compared to fees in other countries. From 1989 to 1999, the average underwriting fee for IPOs in Taiwan is 0.99%,far below the regulatory limit. Although the Taiwanese underwriting industry is highly concentrated, underwriting fees do not cluster at any particular level. We examine the underwriting fee and income structure in Taiwan and find support for an incentive hypothesis. Underwriters have an incentive to charge lower underwriting fees when market demand for IPO shares increases and capital gains account for a larger portion of their total income. [source] The Multijurisdictional Disclosure System and Value of Equity OfferingsJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 1 2006Usha R. Mittoo The Canada and US multijurisdictional disclosure system (MJDS) implemented in 1991 lowered the indirect barriers for investors and issuers by easing reporting and disclosure requirements for cross-border issues. This paper examines the impact of the MJDS and related regulatory changes on Canada,US equity market segmentation using a sample of Canadian seasoned equity offerings in the 1991,1998 period. We find that the number of cross-border issues by Canadian firms increased, and the typical negative stock price reaction that accompanies seasoned equity issues declined over time, supporting increased integration between the two markets after the MJDS. We also document that cross-border issues experience about 1.4 per cent lower negative stock price reaction compared with domestic issues, consistent with Canada,US market segmentation. We find mixed support for Merton's (1987) investor recognition hypothesis. While Canadian firms cross-listed in the US experience a less adverse price reaction to their cross-border offerings compared with their non-US-listed peers, there is no significant difference between the two groups in the case of purely domestic issues. [source] Business Groups and Tunneling: Evidence from Private Securities Offerings by Korean ChaebolsTHE JOURNAL OF FINANCE, Issue 5 2006JAE-SEUNG BAEK ABSTRACT We examine whether equity-linked private securities offerings are used as a mechanism for tunneling among firms that belong to a Korean chaebol. We find that chaebol issuers involved in intragroup deals set the offering prices to benefit their controlling shareholders. We also find that chaebol issuers (member acquirers) realize an 8.8% (5.8%) higher (lower) announcement return than do other types of issuers (acquirers) if they sell private securities at a premium to other member firms, and if the controlling shareholders receive positive net gains from equity ownership in issuers and acquirers. These results are consistent with tunneling within business groups. [source] Initial Public Offerings: An Analysis of Theory and PracticeTHE JOURNAL OF FINANCE, Issue 1 2006JAMES C. BRAU ABSTRACT We survey 336 chief financial officers (CFOs) to compare practice to theory in the areas of initial public offering (IPO) motivation, timing, underwriter selection, underpricing, signaling, and the decision to remain private. We find the primary motivation for going public is to facilitate acquisitions. CFOs base IPO timing on overall market conditions, are well informed regarding expected underpricing, and feel underpricing compensates investors for taking risk. The most important positive signal is past historical earnings, followed by underwriter certification. CFOs have divergent opinions about the IPO process depending on firm-specific characteristics. Finally, we find the main reason for remaining private is to preserve decision-making control and ownership. [source] The Really Long-Run Performance of Initial Public Offerings: The Pre-Nasdaq EvidenceTHE JOURNAL OF FINANCE, Issue 4 2003Paul A. Gompers Financial economists have intensely debated the performance of IPOs using data after the formation of Nasdaq. This paper sheds light on this controversy by undertaking a large, out-of-sample study: We examine the performance for five years after listing of 3,661 U.S. IPOs from 1935 to 1972. The sample displays some underperformance when event-time buy-and-hold abnormal returns are used. The underperformance disappears, however, when cumulative abnormal returns are utilized. A calendar-time analysis shows that over the entire period, IPOs return as much as the market. The intercepts in CAPM and Fama,French regressions are insignificantly different from zero, suggesting no abnormal performance. [source] Price Discovery in Initial Public Offerings and the Role of the Lead UnderwriterTHE JOURNAL OF FINANCE, Issue 6 2000Reena Aggarwal We examine the price discovery process of initial public offerings (IPOs) using a unique dataset. The first quote entered by the lead underwriter in the five-minute preopening window explains a large proportion of initial returns even for hot IPOs. Significant learning and price discovery continues to take place during these five minutes with hundreds of quotes being entered. The lead underwriter observes the quoting behavior of other market makers, particularly the wholesalers, and accordingly revises his own quotes. There is a strong positive relationship between initial returns and the time of day when trading starts in an IPO. [source] Inference in Long-Horizon Event Studies: A Bayesian Approach with Application to Initial Public OfferingsTHE JOURNAL OF FINANCE, Issue 5 2000Alon Brav Statistical inference in long-horizon event studies has been hampered by the fact that abnormal returns are neither normally distributed nor independent. This study presents a new approach to inference that overcomes these difficulties and dominates other popular testing methods. I illustrate the use of the methodology by examining the long-horizon returns of initial public offerings (IPOs). I find that the Fama and French (1993) three-factor model is inconsistent with the observed long-horizon price performance of these IPOs, whereas a characteristic-based model cannot be rejected. [source] Stabilization Activities by Underwriters after Initial Public OfferingsTHE JOURNAL OF FINANCE, Issue 3 2000Reena Aggarwal Prior research has assumed that underwriters post a stabilizing bid in the aftermarket. We find instead that aftermarket activities are less transparent and include stimulating demand through short covering and restricting supply by penalizing the flipping of shares. In more than half of IPOs, a short position of an average 10.75 percent of shares offered is covered in 22 transactions over 16.6 days in the aftermarket, resulting in a loss of 3.61 percent of underwriting fees. Underwriters manage price support activities by using a combination of aftermarket short covering, penalty bids, and the selective use of the overallotment option. [source] Securities Regulation Reform and the Decline of Rights OfferingsCANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 2 2001Nancy D. Ursel This paper develops the hypothesis that the decline in the use of rights offerings is due to reductions in issue costs brought about by changes in securities regulation. The hypothesis is tested in two jurisdictions: Canada and the United States. Time series analysis is used to determine if the decreased use of rights offerings in the 1970,1985 period is associated with regulatory changes designed to ease stock issues, such as short form registration and shelf registration in the U.S. and the Prompt Offer Qualification (POP) system in Canada. The findings are consistent with a significant decrease in rights usage concurrent with the earliest reform in each country. Résumé La présente étude avance l'hypothèse que la réduction de l'emploi des droits de souscription est due à la diminution des coûts d'émission permise par les réformes des lois sur les valeurs mobilières. L'hypothèse est testée dans deux juridictions: le Canada et les États-Unis. Nous faisons une analyse de données chronologiques pour déterminer si la réduction du nombre de droits de souscription entre 1970,1985 reflète les réformes des règlements conçues pour diminuer les coûts d'émission, par exemple, aux États-Unis, l'enregistrement simplifié et l'enregistrement préalable et, au Canada, le Régime du prospectus simplifié. Les résultats sont compatibles avec une diminution significative de l'emploi des droits de souscription, dans chaque pays, dès les premières réformes. [source] Dynamic load-balancing mechanism for distributed Java applicationsCONCURRENCY AND COMPUTATION: PRACTICE & EXPERIENCE, Issue 3 2006Violeta Felea Abstract Program environments or operating systems generally leave the decision on the allocation of program entities to the developer, offering either placement directives, or tools available through the manipulation of a graphical interface. These approaches cannot always take into account the dynamic behavior of applications, dynamicity in the execution environment or the heterogeneity of the execution platform. Transparent deployment algorithms are necessary for automizing and optimizing application distribution. The Adaptive Distributed Applications in Java (ADAJ) project deals with placement and migration of Java objects. It automatically deploys parallel Java applications on a cluster of workstations using monitoring information about the application behavior. The transparency obtained through the integration of these tools in the middleware makes such an environment easy to use and improves efficiency. Copyright © 2005 John Wiley & Sons, Ltd. [source] Is CEO Duality Always Negative?CORPORATE GOVERNANCE, Issue 2 2009An Exploration of CEO Duality, Ownership Structure in the Arab IPO Context ABSTRACT Manuscript type: Empirical Research Question/Issue: This paper examines the relationships between initial public offering (IPO) underpricing, CEO duality, and strategic ownership in 12 Arab countries of the Middle East and North Africa (MENA) region. Research Findings/Results: Using all IPOs from January 2000 until the end of July 2007, we document an average IPO underpricing of 184.1 per cent. Underpricing is higher in IPO firms that have CEO duality. However, strategic shareholders, such as corporations and other industry-related investors, are likely to play a monitoring role whereas underpricing is found to be lower in firms with both CEO duality and strategic shareholder ownership. Moreover, the negative relation between underpricing and strategic blockholding is greater for foreign strategic ownership than it is for domestic strategic ownership. Theoretical Implications: This paper examines the level and determinants of IPO underpricing in the MENA region. It provides evidence on the role played by foreign strategic owners in reducing agency conflicts and information asymmetries within an environment where firms may be affected by the cultural issues related to political ties and family involvement. Practical Implications: Our results contribute to the existing debate on the appropriate regulations for an effective and stable financial system in Arab countries. They offer policy-makers additional evidence on the positive impact of market openness to foreign shareholders. [source] The Anglo-Saxon Approach to Corporate Governance and its Applicability to Emerging MarketsCORPORATE GOVERNANCE, Issue 4 2006Dennis C. Mueller Almost all firms start out as small, owner-managed companies. Many stay that way throughout their lives. Some create attractive investment opportunities, however, that will allow them to grow rapidly and become leading companies in their country. These firms typically do not have sufficient internal funds flows and must turn to external sources of finance. Among these is the issuance of equity. Once a firm sells shares, however, the cost of the managers engaging in on-the-job consumption falls, and they can be expected to do so at the expense of their shareholders. Knowing this, potential shareholders may be unwilling to purchase a new offering of a young firm's shares, and the firm with attractive investment opportunities is unable to finance them. Strong corporate governance institutions help to protect shareholders from the discretionary use of their firm's resources. This paper reviews the case for having strong corporate governance institutions to facilitate the creation of thick equity markets in the context of developing countries in emerging markets, and examines the case for relying on alternative sources of capital including the state. [source] | ||||||||||||||||||||||||||||||||||||||||||||||