Understanding First-day Returns of Hospitality Initial Public Offerings

[Excerpt] The decision for a company to issue shares publicly for the first time is not to be taken lightly. The manager-owner of a private firm must carefully weigh the benefits of an initial public offering (IPO) against the costs. Potential benefits include the ability to raise capital in the public markets on more attractive terms than in private circles; increased liquidity for managers and other insiders who wish to sell ownership stakes; and increased recognition and credibility with customers, employees, and suppliers. These benefits, however, come at considerable direct and indirect costs. For U.S. firms, the direct costs, such as investment banking commissions, average about 11 percent of IPO proceeds.1 Less obvious, but sometimes more painful for issuing firms, is an additional indirect cost commonly referred to as “IPO underpricing.

Understanding First-day Returns of Hospitality Initial Public Offerings

[Excerpt] The decision for a company to issue shares publicly for the first time is not to be taken lightly. The manager-owner of a private firm must carefully weigh the benefits of an initial public offering (IPO) against the costs. Potential benefits include the ability to raise capital in the public markets on more attractive terms than in private circles; increased liquidity for managers and other insiders who wish to sell ownership stakes; and increased recognition and credibility with customers, employees, and suppliers. These benefits, however, come at considerable direct and indirect costs. For U.S. firms, the direct costs, such as investment banking commissions, average about 11 percent of IPO proceeds.1 Less obvious, but sometimes more painful for issuing firms, is an additional indirect cost commonly referred to as “IPO underpricing.”Canina24_Understanding_first_day_returns.pdf: 243 downloads, before Aug. 1, 2020

IPO Underpricing in the Hospitality Industry: A Necessary Evil?

Hospitality initial public offerings (IPOs) experienced average first-day price increases of 17.1% between January 1981 and December 2001. This price increase, referred to as IPO underpricing, represents a substantial opportunity cost to the owners of the issuing firm. IPO underpricing is a critical consideration for managers of private hospitality firms who are considering going public. The increased liquidity, easier access to equity capital, and other benefits that accrue to publicly traded firms must be carefully weighed against the significant cost of underpricing. This paper explains the relationship between the marketing process of IPOs and the degree of underpricing. We test the hypothesis that underpricing is a reward for the information revealed by regular investors during the marketing process of the IPO. We explain why underpricing is a necessity for managers of private hospitality firms if they choose to go public. For managers of private hospitality firms who are considering taking their firms public, our results provide an historical benchmark for the underpricing that they can expect to transfer to outside investors which is different from that of the overall market. Beyond benchmarking the cost of going public, we test theories that predict underpricing and investigate the use of share allocations as an incentive for truth telling

Spaceflight Associated Apoptosis

Lymphoid tissues have been shown to atrophy in rats flown on Russian spaceflights. Histological examination indicated evidence for cell degradation. Lymphoid tissues from rats flown on Spacelab Life Sciences-2 mission were analyzed for apoptosis by evidence of fragmented lymphocytes, which could be engulfed by macrophages, or DNA strand breaks using the terminal deoxynucleotidyl transferase-mediated dUTP nick end-labeling (TUNEL) assay. Apoptosis was not detected in the thymus and spleen collected inflight or from the synchronous ground rats but was detected in the thymus, spleen and inguinal lymph node of the flight animals on recovery. These results indicate that the apoptosis observed in the lymphatic tissues of the rats on recovery could have been induced by the gravitational stress of reentry, corroborating the findings from the early space-flight observations

Urgent Challenges for Local Public Health Informatics

This editorial highlights the urgent challenges for local public health informatics and provides solutions to face these challenges

Seasonal variations in the integumental histology of the newt, Taricha granulosa (Skilton)

The integumental histology of Taricha granulosa (Skilton) has been investigated with special attention being given to the seasonal variations associated with terrestrial and aquatic habitats. The epidermis consists of a stratified squamous epithelium, four to seven cell layers thick, with one to two layers being cornified. The dermis is composed of two layers. The outer stratum spongiosum contains chromatophores, capillaries, smooth muscle cells, fibroblasts and skin glands. The inner stratum compactum is composed of horizontal bundles of collagenous fibers. The granular and mucous glands are simple alveolar glands possessing an intercalary region and a duct. The alveolar wall of the granular gland is comprised of a columnar epithelium, muscle layer, and connective tissue sheath. The mucous gland alveolar wall consists of two layers, a cuboidal to columnar epithelium and a connective tissue sheath. The roughness of the terrestrial skin is due to two types of tubercles. Major tubercles are caused by thickening of the epidermis over a dermal papilla, while minor tubercles are merely thickenings of the epidermis. The aquatic epidermis is less cornified than that of the terrestrial. It also shows a slight increase in height, which is particularly evident in the tail. The swelling of the body and the enlarged tail of the male in the aquatic stage are caused by an edema of the stratum spongiosum. This stage also shows an increase in sub-epidermal capillaries and an increase in the activity of the mucous glands. Both aquatic and terrestrial animals have granular glands of equal secretory activity. The aquatic phase possesses fewer glands per unit area of skin due to the increase in the size of the dermis. Terrestrial newts have the smallest granular glands and aquatic newts the largest, though there is a strong overlap of granular gland volume in the two stages. The aquatic phase has the largest mucous glands

Scotland Registry for Ankylosing Spondylitis (SIRAS) – Protocol

Funding SIRAS was funded by unrestricted grants from Pfizer and AbbVie. The project was reviewed by both companies, during the award process, for Scientific merit, to ensure that the design did not compromise patient safety, and to assess the global regulatory implications and any impact on regulatory strategy.Publisher PD