Shareholder Lockup Agreements in the European New Markets

We analyse the characteristics of lockup agreements of IPOs on the Neuer Markt and the Nouveau Marche from 1996 to 2000.Even though both markets were part of the same EuroNM network, the characteristics of their lockup agreements are substantially different.Firm characteristics have a major influence on lockup contracts.In addition, shareholder characteristics explain the diversity of contracts within the same firm.Although the French regulator offers two types of minimum lockup contracts, the market perceives a difference between the two contracts as the choice is influenced by the type of the firm and the type of shareholders.Initial public offerings;IPO;lockup agreements;lockup agreements;underpricing;Neuer Markt;Nouveau Marché;EuroNM;asymmetric information

Why are the French so Different from the Germans? Underpricing of IPOs on the Euro New Markets

IPOs on the EuroNMs have shown very high underpricing.The majority of these IPOs possess specific characteristics such as lock-up agreements, venture-capital financing, ownership by the underwriter and over-allotment options.We study how these characteristics influence the underpricing of firms listed on the two largest EuroNM stock exchanges, the Neuer Markt of Germany and the Nouveau Marche of France.We find that the high underpricing in these two markets contrary to the evidence on the US - is not driven by insiders selling behaviour.However, the large underpricing is caused by the high degree of riskiness of the issuing firms and by the partial adjustment phenomenon of offer prices to compensate institutional investors for the truthful revelation of their demand for the shares.In contrast, venture-capital involvement does not affect underpricing.For France, lock-up agreements act as substitutes to underpricing, but not so for Germany.We also explore the reasons for the large difference in underpricing between the German and the French IPOs: German firms are more underpriced because they are more risky, have larger price revisions, have less stringent VC lock-up contracts and mostly go public during the hot issue period of 1999-2000 when the general level of underpricing in all IPO markets is substantially higher.IPOs;underpricing;venture capital;high technology;European new markets;lock-up agreements

Survey and Service on STD/HIV/AIDS in Namungo Mines,Lindi Region

Namungo is small-scale mining in Ruangwa district, Lindi Region, with deposits of green gemstone (tsavorite). About 400 men and women are living in temporary settlements. In August 2001, an STD/HIV/AIDS workplace intervention started which comprised of: A baseline KAP study with villagers and miners, A survey on infection rates with Syphilis and HIV, Treatment of patients with STD, An educational campaign and Development of plans for continuos collaboration between the mine and the health system. The KAP-study showed that 81% of respondents knew that sexual intercourse/sex without a condom is the main mode of HIV transmission. 80% correctly started that a person infected with HIV can remain a symptomatic for a long period. Half of them responded to had paid sex with more than one partner during the last 12 mouth. Those reporting having used a condom in the past 3 month were 48%. 92% of the respondents reported willingness for Voluntary Counseling and Testing (VCT) to know their HIV status. From 429 people who had came with symptoms of STDs most were treated for discharge syndrome (40% males,24 females) and for genital ulcers (38% in males and females) Testing and counseling for syphilis and HIV was offered to STD clients and volunteers. Infection rates were high in both groups, STD patients and volunteers with 18% for syphilis and 17% for HIV. The highest prevalence with 38% was found in women 30-34 years of age. The high infection rates, risky behavior and a high mobility of the people involved are a challenge to claim holders, health authorities and communities in the vicinity. Regular interventions urgently needed

Accuracy of ultrasound-guided intra-articular injections in guinea pig knees.

ObjectiveDunkin Hartley guinea pigs, a commonly used animal model of osteoarthritis, were used to determine if high frequency ultrasound can ensure intra-articular injections are accurately positioned in the knee joint.MethodsA high-resolution small animal ultrasound system with a 40 MHz transducer was used for image-guided injections. A total of 36 guinea pigs were anaesthetised with isoflurane and placed on a heated stage. Sterile needles were inserted directly into the knee joint medially, while the transducer was placed on the lateral surface, allowing the femur, tibia and fat pad to be visualised in the images. B-mode cine loops were acquired during 100 µl. We assessed our ability to visualise 1) important anatomical landmarks, 2) the needle and 3) anatomical changes due to the injection.ResultsFrom the ultrasound images, we were able to visualise clearly the movement of anatomical landmarks in 75% of the injections. The majority of these showed separation of the fat pad (67.1%), suggesting the injections were correctly delivered in the joint space. We also observed dorsal joint expansion (23%) and patellar tendon movement (10%) in a smaller subset of injections.ConclusionThe results demonstrate that this image-guided technique can be used to visualise the location of an intra-articular injection in the joints of guinea pigs. Future studies using an ultrasound-guided approach could help improve the injection accuracy in a variety of anatomical locations and animal models, in the hope of developing anti-arthritic therapies. Cite this article: Bone Joint Res 2015;4:1-5

The Error of \u3ci\u3eKim v. Lee\u3c/i\u3e and Equitable Subrogation: Why Birfucating Lien Priorities Is a Better Remedy

Normally, the priority of an interest in real property is determined according to the date when the interest was recorded in the Recorder\u27s Office of the county in which the property is located. The first interest recorded has first priority. When an interest is satisfied, junior interests are elevated to the next priority level. If a landowner is forced to sell the property to satisfy a debt through foreclosure, the priority of interests determines the order for distributing sale proceeds. Equitable subrogation is a remedy whereby a court gives a subsequent interest holder priority over a prior recorded interest because the subsequent interest replaces a senior lien. This leap in priority may effectively deny the intervening lienor the opportunity to foreclose and be paid for the lien. When a court decides whether or not to apply equitable subrogation, it is forced to apply an all-or-nothing remedy when better alternatives exist. In Kim v. Lee, the Washington State Supreme Court adopted the Restatement (Third) of Property\u27s rule for applying equitable subrogation but failed to apply the accompanying remedy of bifurcation. This Note argues that the Washington Supreme Court should have bifurcated the lien priorities of the refinance lender and intervening lienor. This Note concludes that bifurcation is a superior remedy because it strikes the appropriate balance between the legal framework that determines lien priority and the need for equitable remedies

The Rise and Fall of the European New Markets: On the Short and Long-Run Performance of High-Tech Initial Public Offerings

initial public offerings;underpricing;long-run underperformance;stock exchange regulation;listing rules

Lock-In Agreements in Venture Capital Backed UK IPOs

This paper examines the impact of venture-capital backing of UK companies issuing shares at flotation on the characteristics of the lock-in agreements entered into by the existing shareholders, and on the abnormal returns realised around the expiry of the directors' lock-in agreements.The study examines the lock-in agreements of a sample of 186 UK IPOs issued during 1992-98. 103 of these companies had venture-capital backing at the IPO.The sample is also broken down into firms classified by industrial sector: of 103 VC backed companies 48 are high-tech, and among the 83 firms without VC backing 33 are high-tech.We find that lock-in agreements in the UK show much more variety in terms of the contractual detail than US agreements.Lock-in periods are particularly long for venture-backed high-tech companies.By contrast, for firms not in the high-tech sector, venture-capital backing appears to reduce the directors' lock-in periods.This suggests that for UK IPOs venture-capital backing does not serve as a substitute for lock-in agreements.Examining the proportion of locked-in directors' shares, we find it to be significantly higher in VC-backed firms as compared to firms without VC backing in the sample of firms not classified as high tech.This suggests that for firms likely to face only moderate information asymmetries (i.e. those not in high-tech industries), venture-capital backing of the IPO is not used as a substitute for, but rather as a complement to, lock-in agreements.The higher proportion of locked-in directors' shares among VC-backed companies (not in the high-tech sector) may be because the underwriters of VC-backed IPOs expect heavy sales by the VCs in the period after the IPO and decide to lock in the directors' shares and in order to limit the downward pressure of the VC's disposals on stock prices.Alternatively, if VCs do not sell out completely in the IPO, as reported by Barry et al. 1990, they may seek to align the directors' interests with their own by locking the directors in.We also examine the share-price performance of IPOs with and without VC backing around the time of the expiry of the lock-in agreements, and find that the CAARs for the VC-backed stocks are lower for most of the short windows around the expiry date, both for the sample as a whole and separately for each industry sector.For the sample of 28 VC-backed stocks, the CAARs are statistically significantly less than zero at the 1% level for the narrow one-to three-day windows around the expiry date.For the VC-backed stocks, the CAARs range from -1.2% to -1.6% (and even to -2% for the 11-day window, but this result is not statistically significant), while the corresponding CAARs for the stocks without VC backing range only from -0.2% to -0.8.initial public offerings;lock-in;high-tech;venture capital;IPO

Corporate Governance in the Financial Sector of Pakistan

La Porta et al. (1998) assign Pakistan, a common-law country, the maximum score of 5 for their anti-director rights index. Pakistan should therefore be a country with good investor protection attracting large amounts of investments. However, the reality could not be more different. Pakistan has been lagging behind other, comparable Asian economies in terms of incoming foreign direct investment as well as GDP-per-capita growth. This paper focuses on the Pakistani banking sector. The paper analyses the banks ownership and control structure. It finds that Pakistan has its own idiosyncrasies, which are difficult to associate with La Porta et al.s characterisation of corporate governance and investor protection in common-law countries. The paper also reviews the recent reforms of corporate governance.Corporate governance, corporate control, Banks, Pakistan, Emerging Markets, investor protection

How far that little candle throws his beams! An interview with Mats Isaksson

This article adopts a policy-maker perspective on corporate governance, while exploring the role of academia in influencing corporate governance principles, the reasons for the boilerplate approach to governance rules typically adopted by most companies, and the reasons for a possible disconnect between research and corporate governance policies. The article ends with some key lessons about corporate governance and the future research agenda