10,936 research outputs found

    A web of stakeholders and strategies: A case of broadband diffusion in South Korea

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    When a new technology is launched, its diffusion becomes an issue of importance. There are various stakeholders that influence diffusion. The question that remains to be determined is their identification and roles. This paper outlines how the strategies pursued by a government acting as the key stakeholder affected the diffusion of a new technology. The analysis is based on a theoretical framework derived from innovation diffusion and stakeholder theories. The empirical evidence comes from a study of broadband development in South Korea. A web of stakeholders and strategies is drawn in order to identify the major stakeholders involved and highlight their relations. The case of South Korea offers implications for other countries that are pursuing broadband diffusion strategies

    An Empirical Investigation of Going Public Decision of Indian Companies

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    This paper examines the determinants of the going public decision of the Indian companies. A probit regression model is used to analyze the influence of fundamental financial data of Indian companies on their going public decision. The size, profitability, age and leverage emerged as the significant determinants of going public decision of Indian companies. The statistically insignificant relationship between the financing needs and likelihood of an IPO found in our study is similar to the Pagano et al.,1998 and contrary to the findings of several other studies done on same issue.Initial Public Offerings; Going public decision; emerging markets; India

    Examining the effects of information sources on individual earning rates in the South Korean stock market

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    Since the introduction of the Korea Stock Exchange, individual investors have been some of the most important players in the stock market. With the subsequent introduction of the Internet and online trading systems in South Korea in 1997, the participation of individual investors in the Korean stock market has greatly expanded. However, few studies have investigated their activities and earning rates. To address this research shortcoming, this study investigates the antecedents of individual investorsā€™ earning rates in the Korea stock market by employing multiple constructs of information channels and perceived usefulness. Structural equation modelling (SEM) analysis of survey data collected from 1555 individual investors reveals that the information quality of online trading systems and of companiesā€™ public announcements largely determines the individual investorsā€™ perceptions of their usefulness, whereas the information quality of two Internet channels (Internet news and other web pages) only moderately affects perceived usefulness. Additionally, the information quality of two TV channels significantly affects perceived usefulness, but the effects are weaker than for the other channels. In addition, our findings confirm a close relationship between the perceived usefulness of information and individual investorsā€™ earning rates. Last, we discuss the implications and present suggestions for future research

    What's in a name and when does it matter? The hot and cold market impacts on underpricing of certification, reputation and conflicts of interest in venture capital backed Korean IPOs

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    This article analyses the impact of the participation of venture capital (VC) firms on underpricing in 372 businesses brought to IPO during the period 1999-2001 in KOSDAQ. Korea's second-tier stock market, KOSDAQ, has grown dramatically since 1999 and about half of the firms listed in KOSDAQ during this period were VC-backed, thus providing a good testing ground for empirical analysis. We measure VC participation in terms of pre IPO share-ownership by VC firms and attempt to differentiate IPO impacts between VCs grouped in terms of their reputation (measured by their dominance of the VC market, and by their affiliation in terms of ownership by banks and security companies). In estimating impacts we control for a wide range of variables which may affect the extent of underpricing. These include uncertainty inducing factors such as the age, size, profitability, leverage, and technical riskiness (measured by sector and R&D intensity) of the firm brought to IPO. We also control for market conditions using proxies for hot and cold market effects based on the numbers of contemporaneous IPOs, underpricing trends and market price movements. Finally in addition to allowing for the impact of underwriting quality we control for share overhang and price revision effects. We find that, controlling for other relevant factors, pre-IPO ownership by VCs has an insignificantly negative impact on underpricing in both hot and cold markets. However in cold markets reputational effects within the VC group do matter. In those conditions the top 3 VCs and those owned by or affiliated with banks are significantly associated with lower underpricing. The same is true for the quality of underwriting. However in hot market conditions none of these effects are present.Initial Public Offering; Underpricing; Venture Capital; Certification; Conflict of Interest, Informational Advantage

    Heterogeneous Investors and their Changing Demand and Supply Schedules for Individual Common Stocks

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    Using 550 million limit orders submitted in the Korea Stock Exchange, we estimate demand and supply elasticities of heterogeneous investor types and their changes around the Asian financial crisis. We find that domestic individuals have substantially more inelastic demand and supply curves than domestic institutions and foreign investors. The crisis permanently reduced price elasticities of domestic individuals by 50% but had no effect on those of foreign investors. Institutional changes restricting margin purchases, implemented after the crisis, seem particularly important in explaining the dramatic drop. Information heterogeneity, availability of close substitutes and arbitrage risk also explain time-series variations in elasticities.

    Heterogeneous Investors and their Changing Demand and Supply Schedules for Individual Common Stocks

    Get PDF
    Using 550 million limit orders submitted in the Korea Stock Exchange, we estimate demand and supply elasticities of heterogeneous investor types and their changes around the Asian financial crisis. We find that domestic individuals have substantially more inelastic demand and supply curves than domestic institutions and foreign investors. The crisis permanently reduced price elasticities of domestic individuals by 50% but had no effect on those of foreign investors. Institutional changes restricting margin purchases, implemented after the crisis, seem particularly important in explaining the dramatic drop. Information heterogeneity, availability of close substitutes and arbitrage risk also explain time-series variations in elasticities.
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