Essays on the role of the incentives of issuers, transparency, and culture on the global IPO underpricing difference

Initial public offerings (IPOs) underpricing is a widely researched area in finance literature. Yet, empirical evidence demonstrating and theoretical models explaining differences in underpricing across countries have remained an enigma in academia for a long time. This thesis consists of three independently interconnected essays that explain differences in underpricing observed across the Group of Twenty (G20) IPO markets. This is achieved using the Entrepreneurial Wealth Losses¿ (EWL) theory, time-variant differences in country-level transparency, and differences in country-level national cultures. Specifically, the purpose is to answer the following three main research questions: (1) does entrepreneurial wealth losses theory explain underpricing differences across IPO markets?; (2) do differences in country-level transparency directly explain underpricing and moderate the relationship between firm-level variables and underpricing across IPO markets?; and (3) do differences in country-level national cultures directly explain underpricing and modify the relationship between firm-level variables and underpricing across IPO markets? A total of 10,217 IPOs, covering 12 developed and 10 developing G20 economies from January 1995 to December 2016, were obtained from secondary sources. The quantitative techniques of unbalanced cross-sectional regression models, Ordinary Least Squares (OLS), Two-Stage Least Squares (2SLS), one-way clustered 2SLS, and two-way clustered 2SLS models, Hierarchical Linear Modelling (HLM), and number of robustness tests were employed to test the hypotheses. The EWL model is adopted and extended in this thesis. This research contributes to the theoretical framework by providing methodological advances in various finance areas like IPOs, IPO-governance and IPO-cultural literature, and has practical implications for researchers, investors, entrepreneurs and policy-makers

Review of Theoretical Explanations of IPO Underpricing

Motivated by a lack of availability of theoretical review of Initial Public Offerings (IPO) underpricing, this paper recognized a lack of presentation of theoretical explanations of the phenomenon of IPO underpricing in the literature. This makes scholars and investors interested in IPO underpricing research to face difficulty when it comes to the decision to employ IPO underpricing models. Hence, this paper provides a concise but comparatively adequate review of competing IPO underpricing theories. This review covered 13 theoretical models based on information asymmetry, institutional explanations, ownership and control reasons, and behavioral explanations to elucidate the phenomenon of IPO underpricing. Based on this review, the authors found that the underpricing phenomenon is eventually elucidated by the existence of information asymmetry amongst key IPO parties including the issuing firm, the underwriter, and the investor. Across the 13 reviewed IPO underpricing theories, the Entrepreneurial Wealth Losses (EWL) theory emerges as a compelling asymmetric information model. This is because it solves the problem of information asymmetry between the issuer and investor while accounting for the endogenous relationship between underwriter reputation and IPO underpricing

PENGGUNAAN METODE DEMONSTRASI DENGAN MEDIA MODEL UNTUK MENINGKATKAN AKTIVITAS DAN HASIL BELAJAR DALAM PELAJARAN PENDIDIKAN AGAMA ISLAM

Berdasarkan pengamatan penulis selama mengajarkan mata pelajaran Pendidikan Agama Islam di SMK Muhammadiyah Pagaralam terungkap bahwa metode dan media pembelajaran masih perlu ditingkatkan. Sehingga peneliti melakukan Penelitian tindakan kelas ini. Siswa tidak fokus dan kurang termotivasi dalam proses belajar mengajar, sehingga nilai hasil belajar yang dicapai siswa tidak memuaskan.Tujuan penelitian tindakan kelas ini untuk meningkatkan aktivitas dan hasil belajar siswa dalam pembelajaran Pendidikan Agama Islam menggunakan metode Demonstrasi dengan media Audio Visual, metode yang digunakan adalah metode diskriptif kwantitatif. Bentuk penelitian yang dilakukan yaitu penelitian tindakan kelas dengan subjek dari penelitian siswa kelas XI jurusan Administrasi Perkantoran SMK Muhammadiyah Pagaralam yang berjumlah 22 orang. Hasil penelitian menunjukkan bahwa penggunaan metode demonstrasi dapat meningkatkan aktivitas dan hasil belajar siswa pada pelajaran Pendidikan Agama Islam. Hal ini terlihat dari menigkatnya prestasi hasil belajar dan aktivitas siswa mencapai 86,36 dan ketuntasan hasil belajar siswa 78,45. Berdasarkan hasil penelitian yang diperoleh terlihat bahwa penggunaan metode Demonstrasi dengan media Audio Visual dapat meningkatkan aktivitas dan hasil belajar siswa kelas XI Administrasi Perkantoran SMK Muhammadiyah Pagaralam

The factors influencing the decision to list on Abu Dhabi securities exchange

The Abu Dhabi Securities Exchange is established to fund corporates, investments and economic growth. However, many companies operating in Abu Dhabi do not take the opportunity and list in the market. In this paper we survey a sample 145 chief executive officers and deputies of the CEO’s in order to explain why firms refrain from going public and float their equity in the market. Our findings indicate that the poor quality of the Abu Dhabi equity market in terms of its inefficiency and inadequate liquidity plays a crucial role in discouraging firms to list in the market. Moreover, management do not list in order to avoid dilution of ownership as well as to retain control of the company. Finally, we find that knowledgeable managers in big companies are more likely to list in the market particularly when they operate in a competitive industry

The Early Impact of Government Financial Intervention Policies and Cultural Secrecy on Stock Market Returns During the COVID-19 Pandemic: Evidence From Developing Countries

This paper examines the role of government financial intervention policies and cultural secrecy on equity market returns during the start of the COVID-19 pandemic in developing countries’ stock markets. We employ global data including 939 observations across 32 developing countries (23 emerging and 9 frontier stock markets) from December 1 to April 28, 2020. Our results show that the above-mentioned policies that set out to curb the COVID-19 pandemic succeed in increasing equity returns. It reflects investors’ improved perceptions of governments’ commitment to stabilizing the economy during the pandemic in developing, emerging, and frontier equity markets. Results show that investors in all equity markets discount differences in cultural secrecy in processing market information when investing in stock markets. We find that equity market investors in developing and emerging countries truly react negatively to the rise in the number of confirmed COVID-19 cases reported. Yet, we find that COVID-19 wields no influence on equity market returns in frontier equity markets. This presents frontier equity markets as a safe-haven investment destination during a global health outbreak. Our work helps investors during such events to identify the best and worst investment destinations in developing, emerging, and frontier stock markets. At the same time, it is important to understand the critical roles of: firstly, the introduced government financial intervention policies; and secondly, the daily growth in reported COVID-19 cases on stock market returns

Factors Affecting Employees Use and Acceptance of Remote Working During the COVID-19 Pandemic: Evidence From the Jordanian Insurance Sector

Remote working during the COVID-19 pandemic comes as an “enforced experiment,” where companies and individuals have turned to work from home to preserve business continuity. Drawing on a theoretical framework that integrates the Theory of Reasoned Action (TRA), Social Capital Theory (SCT), and Technology Acceptance Model (TAM), this research uses a sample of 134 survey responses to assess the factors affecting the acceptance and use of remote work during the COVID-19 pandemic among workers of the insurance industry in Jordan. The results suggest that social trust, perceived usefulness, and perceived ease of use can help elevate employee’s acceptance and use of remote work, whereas social norms have no significant effect. Considering these results, we further discuss implications and recommendations for the insurance sector

An empirical investigation of the determinants of market efficiency in Borsa Istanbul

Following the last global financial crisis, efficiencies of stock markets have come to sight as a novel area of research. The question of what factors shape the efficiency of the stock market is naturally always of a curiosity in theory and practice. In line with the framework of this curiosity, this study examines the main determinants that play a crucial role in the efficiency of a certain stock market, Borsa Istanbul. Our study contributes to the literature by using five years and daily data belonging to both individual and institutional investors. We here aim to specify the ten determinants of market efficiency which are categorized under investor-based, market-based and country-based determinants. According to the three different regressions and VAR analysis, the results indicate the strong relationship between the market efficiency and the specified determinants such as turnover, market volatility, the share of foreign investors and interest rate

Consumption, wealth, stock and housing returns: Evidence from emerging markets

We test the predictive ability of the transitory deviations of consumption from its common trend with aggregate wealth and labour income, cay, for both future equity and housing risk premia in emerging market economies. Using quarterly data for 31 markets, our country-level evidence shows that forecasting power of cay vis-à-vis stock returns is high for Brazil, China, Colombia, Israel, Korea, Latvia, and Malaysia. As for housing returns, the empirical evidence suggests that financial and housing assets are perceived as complements in the case of Chile, Russia, South Africa and Thailand, and as substitutes in Argentina, Brazil, Hong Kong, Indonesia, Korea, Malaysia, Mexico and Taiwan. Using a panel econometric framework, we find that the cross-country heterogeneity observed in asset return predictability does not accrue to regional location, but can be attributed to differences in the degree of equity market development and in the level of income.Operational Programme for Competitiveness Factors - COMPETE and by National Funds through the FCT - Portuguese Foundation for Science and Technology within the remit of the project “FCOMP-01-0124-FEDER-037268 (PEst-C/EGE/UI3182/2013)”