scholarly journals A Study on Impact of Dividend Policy on Initial Public Offering Price Performance

2019 ◽  
Vol 14 (13) ◽  
pp. 4501-4507
Author(s):  
S. Meghna ◽  
N. Suresh ◽  
J.C. Usha
Keyword(s):  
Initial Public Offering ◽  
Dividend Policy ◽  
Price Performance ◽  
Public Offering ◽  
Offering Price

scholarly journals PENGARUH RETURN ON ASSET, FINANCIAL LEVERAGE, DAN UKURAN PERUSAHAAN TERHADAPUNDERPRICING PADA PERUSAHAAN YANG MELAKUKAN INITIAL PUBLIC OFFERING (IPO) DI BURSAEFEK INDONESIA

2016 ◽  
Vol 11 (2) ◽  
pp. 35 ◽  
Author(s):  
Putu Widhiastina ◽  
Rida Prihatni
Keyword(s):  
Initial Public Offering ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Company Size ◽  
Financial Leverage ◽  
Return On Assets ◽  
Result Show ◽  
The Difference ◽  
Public Offering ◽  
Offering Price

This study aimed to determine the influence of The Influence of return on asset, financial leverage, and size of company on underpricing. Underpricing is measured by division the difference between clossing prices and offering price with offering price, return on asset is measured by division net profit with total asset, financial leverage is measured by division total debt with total equity and size of company is mesured with total sales in annual report company. This study took a sample of initial public offering company listed in Indonesia Stock Exchange during the years 2010-2013. The data obtained by purposive sampling techniques and using multiple regression analysis. Simultaneous hypothesis testing result show that return on asset, financial leverage and company size simultaneously affect the underpricing. The partial hypothesis test result show that retun on asset, financial leverage and company size have a significant affect the underpricing.    Keywords: Return On Assets, Financial Leverage, Company Size, Underpricing

scholarly journals Motif Go Public, Herding, Ukuran Perusahaan, Dan Underpricing Pada Pasar Modal Indonesia

2010 ◽  
Vol 3 (1) ◽  
Author(s):  
Fitri Ismiyanti ◽  
Rohmad Fuad Armansyah
Keyword(s):  
Initial Public Offering ◽  
Stock Exchange ◽  
Going Public ◽  
Day Trading ◽  
Asymmetry Information ◽  
The World ◽  
Public Offering ◽  
Offering Price ◽  
Significant Size ◽  
Exchange Data

Underpricing become a phenomenon which often occurs by companies during Initial Public Offering in every country in the world, which offering price lower than closing price on the first day trading on the stock exchange. According to Rock (1982), asymmetry information of an IPO company leads to underpricing phenomena, where the information according to the company are not evenly distributed among investors. This asymmetry information emerging distribution of uncertainty among investors that leads to underpricing. The objective of this research is to test the influence of motive of company going public, herding in stock market, and size of the company to the degree of underpricing using sample of 257 companies listed during year 1990 to June 2009 on the Indonesian Stock Exchange. Sample is taken by using purposive sampling with criteria as underpriced stocks and the stocks are not delisting overall from stock exchange. Data are analyzed using multiple regressions and path analysis to test the relation between motive of company going public, herding, and size of the company to the degree of underpricing. Pursuant to the analysis, motive of company going public and herding have positively influence on the degree of underpricing but statistically not significant. Size of the company which measure using total asset have negatively influence on the degree of underpricing and statistically significant on the first day trading on the stock exchange.

Sequential Capital Budgeting as Real Options: The Case of a New DRAM Chipmaker in Taiwan

2003 ◽  
Vol 06 (01) ◽  
pp. 87-112 ◽  
Author(s):  
Chang-Wen Duan ◽  
William T. Lin ◽  
Cheng Few Lee
Keyword(s):  
Initial Public Offering ◽  
Low Cost ◽  
Capital Budgeting ◽  
Lattice Method ◽  
Exercise Price ◽  
Average Production ◽  
Public Offering ◽  
New Generation ◽  
Multivariate Normal Integral ◽  
Offering Price

We evaluate the initial public offering price of a new DRAM chipmaker in Taiwan in accordance with the compound real call options model of Lin (2002). The worldwide average sales price is the underlying variable, and the average production cost of the new DRAM foundry is the exercise price. The twin security is defined as a portfolio of DRAM manufacturing firms publicly listed in Taiwan stock markets. We estimate the dividend-like yield with two methods, and find that the yield is negative. The negative dividend-like yield results from the negative correlation between the newly constructed DRAM foundry and its twin security, implying the diversification advantage of a new generation of DRAM foundry with a relative low cost of investment opportunity. We solve the critical value for the multivariate normal integral with the secant method, approximating the integral with the lattice method. It has been found that there is only a 4.6% difference between the market IPO price and the estimated one.

scholarly journals Earnings Quality and Ownership Structure: The Role of Private Equity Sponsors

2009 ◽  
Vol 84 (3) ◽  
pp. 623-658 ◽  
Author(s):  
Sharon P. Katz
Keyword(s):  
Initial Public Offering ◽  
Stock Price ◽  
Private Equity ◽  
Earnings Quality ◽  
Price Performance ◽  
Before And After ◽  
Public Offering ◽  
Long Term Performance ◽  
Term Performance

ABSTRACT: This study explores how firms' ownership structures affect their earnings quality and long-term performance. Focusing on a unique sample of private firms for which there is financial data available in the years before and after their initial public offering (IPO), I differentiate between those that have private equity sponsorship (PE-backed firms) and those that do not (non-PE-backed firms). The findings indicate that PE-backed firms generally have higher earnings quality than those that do not have PE sponsorship, engage less in earnings management, and report more conservatively both before and after the IPO. Further, PE-backed firms that are majority-owned by PE sponsors exhibit superior long-term stock price performance after they go public. These results stem from the professional ownership, tighter monitoring, and reputational considerations exhibited by PE sponsors.

Biotech IPOs Steam Ahead in 2014

2014 ◽  
Vol 20 (2) ◽  
Author(s):  
G. Steven Burrill
Keyword(s):  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Life Sciences ◽  
Public Companies ◽  
Public Offerings ◽  
Biotech Company ◽  
Stage Of Development ◽  
Public Offering ◽  
Offering Price

If you walk into most private biotech company boardrooms today, it is likely that you will hear a discussion about whether to go public. Companies at every stage of development are either getting ready to file for an initial public offering or thinking about it. Although the slowdown in new issues at the end of 2013 gave observers pause that the robust biotech IPO market of 2013 might slow down in 2014, the reality has been just the opposite. By the middle of March, 28 life sciences companies had completed initial public offerings on U.S. exchanges, raising $1.8 billion in new capital, and collectively on average trading 47.4 percent above their initial offering price.

EMPLOYEE EQUITY INCENTIVES AND VENTURE CAPITALIST INVOLVEMENT: EXAMINING THE EFFECTS ON IPO PERFORMANCE

2008 ◽  
Vol 13 (04) ◽  
pp. 409-423 ◽  
Author(s):  
JAMES W. WESTERMAN ◽  
SCOTT W. GEIGER ◽  
LINDA A. CYR
Keyword(s):  
Initial Public Offering ◽  
Stock Price ◽  
Stock Options ◽  
Venture Capitalist ◽  
Venture Capitalists ◽  
Ipo Performance ◽  
Equity Incentives ◽  
Price Performance ◽  
Public Offering ◽  
Positive Effect

We examine the effects of venture capitalist involvement and equity incentives for all employees on the performance of initial public offering firms. Data was collected from 402 IPO firms, representing 242 non-VC backed and 160 VC backed firms. Results indicate venture capitalists positively influence the likelihood the portfolio firm will offer equity incentives to all employees. Consistent with the agency theory argument that monitoring and incentives can behave as complements to one another, the results suggest venture capitalist backing and incentive stock options for all employees operate in concert to have a positive effect on stock price performance three years after the initial public offering.

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