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The aim of the paper is to study the long‐run under‐performance of UK initial public offerings (IPOs) by relating it to the pre‐IPO financial performance of the firm as well as the managerial decisions taken before the IPO.

The three‐year share returns of UK IPOs is studied using various methodologies such as buy and hold returns, cumulative abnormal returns and Fama and French three‐factor returns.

It was found that the percentage of equity issued and the degree of multinationality of a firm are the key predictors of its performance after the IPO. It is also found that small firms behave differently from large firms and suffer from worse long‐run performance than large firms.

There is a great need for future research to focus on ownership structure and long‐run returns. Further, a focus on the level of debt and venture capital financing in the pre‐IPO period may also uncover important relationships with the long‐run performance of a firm.

The results obtained from this study provide important information for the prospective long term investors in new issues. While pre‐IPO performance of a firm cannot predict the post‐IPO performance with certainty, nevertheless the results of this study suggest that long‐term investors should show caution while deciding on long term investment in IPO firms.

The paper explains the post‐IPO underperformance of firms by relating it to the pre‐IPO managerial decisions made in the firm. It also documents the role of multinationality in explaining long run underperformance.

The objective of this study is to investigate the long‐run performance of initial public offerings (IPOs) in Germany for the period from 1977 to 1995. The paper studies why some IPO firms have substantial positive and others have substantial negative long‐run buy‐and‐hold abnormal returns.

The paper approaches this problem by differentiating the abnormal return patterns by the following criteria: benchmark, year of going public, security design, money raised, market value and magnitude of underpricing.

The empirical findings suggest that the subsequent financing activity in the equity market is the most important factor for determining the future performance of an IPO. This variable separates the out‐performers from the under‐performers. Thus, only successful firms have the opportunity to raise additional funds in the equity market through a seasoned equity offering.

Future research should concentrate on investigating whether the introduction of new stock market segments in Germany has changed the long‐run performance of IPOs.

The results suggest that firms with a superior performance have the opportunity to raise additional equity whereas the poor performers do not get a second chance to sell equity to the public. This means that firms have to earn at least their cost of capital in order to receive additional funding.

Compared to other research, this study explains the significant difference in long‐run performance between two groups of IPOs based on the future financing decision. This finding offers new insights to both academics and practitioners alike.

While advantageous, the role of family control is under‐explored in finance. Family ownership can help guarantee stability of business and long‐term planning. The purpose of this study is to examine whether block‐holder ownership differentially affects the long‐term performance of initial public offerings (IPOs), and verifies whether this effect differs between family and non‐family IPOs.

Using a sample of 163 French IPOs from 1996 to 2000, this paper examines the links between family control and the first‐year market performance. It focuses on IPOs where both families and Venture Capitalists (VCs) are engaged to lock‐in their shareholdings for a period of one year following the IPO date, and are thus expected, at least in the case of families, to provide an effective monitoring during this period.

The main findings bring support to the entrenchment hypothesis and show a negative, but weak, relationship between block‐holder ownership and the first year market performance (p=10 per cent). Moreover, there is cubic relationship between family ownership and post‐listing market performance where the first‐year buy‐and‐hold first decreases, then increases, and finally reverts to decline.

While most of prior research focuses on the association between ownership and governance effects on firms’ performances in publicly‐owned firms, this study demonstrates links between family control and performance in issuing firms operating in France, where family‐controlled IPOs are a common model of corporate governance.

This paper aims to examine the effect of deregulation of government securities market on the cost of market borrowing of 14 major states in India.

Empirical models explaining changes in interest rates on market borrowings of the Indian states under consideration are tested. The stability of the empirical relationships are then evaluated using structural breakpoint tests conducted around known periods of deregulation in the government securities market.

The stability tests clearly pointed to difference in the dynamics of market borrowing rates pre and post deregulation for overwhelming majority of the states in the sample.

The question pertaining to whether government securities market deregulation reduced or raised states' market borrowing rates is left unaddressed in the current study.

An empirical assessment of the effects of deregulation of the government securities market on the cost of states' borrowing in India is imperative considering the key role played by them in the provision of various public services. The data set created to conduct such an analysis is unique and has the potential to uncover more interesting features about state‐level borrowing in India.

This paper seeks to answer the question whether control and changes in control after a firm's initial public offering (IPO) have a significant influence on firm value in two very different systems of corporate governance, i.e. Germany and the UK.

The dynamics of post‐IPO firm performance are investigated for size‐ and industry‐matched German and UK samples.

It was found that, although the post‐IPO evolution of control in German and UK companies differs significantly, there is no significant change in their long‐run financial and operating performance. The paper concludes that the long‐run performance of IPOs is not correlated with control and ownership retention. Moreover, the results presented in the paper suggest that the poor long‐term performance of IPOs documented in empirical literature can neither be explained by potential agency conflicts arising from the reduction in control held by the original shareholders nor by a reduction in the incumbents’ control.

Contrary to what may be expected, the involvement of the pre‐IPO shareholders in the firm after the flotation is not crucial to the firm in terms of value generation. Although a reduction in control is expected to lead to less intensive monitoring as strong blockholders are no longer present, there is still no evidence that the firm will suffer in terms of its performance over the long run.

The paper uses an original methodology which consists of matched samples of German and UK firms with similar initial levels of control. The paper then tracks changes in control over the six years after the IPO and links these to the levels of and changes in performance.

The role of financial institutions and financial intermediaries in fostering the economic growth by improving the efficiency of capital accumulation, encouraging savings and ultimately improving the productivity of the economy has been well accepted by now. Recent studies show that the insurance industry can improve the economic growth through financial intermediation, risk aversion and generating employment. This study aims to find the relationship between life insurance industry and economic development in India.

The study uses the VAR‐VECM model to find out the long run and short run relationship (if any) between life insurance growth and economic growth along with Granger causality test to suggest any causal relationship.

This study finds that there is long term relationship between life insurance industry and economic development in India. And the Granger causality test suggests that life insurance sector improves the overall economic development in India and the reverse is not significant.

The only limitation to study the relationship between life insurance sector development and economic development is the data set which has been used is annual data as the quarterly data were not available for insurance industry.

The study documented the long run relationship between life insurance industry and economic development in India and finds that the life insurance sector improves the overall economic development in India. This would help us to understand the implications of the life insurance market development in the post reform era.

There is a dearth of literature on the Indian economy in relation to the insurance sector, specifically the life insurance sector. This is the first attempt to study the impact of life insurance development on Indian economy after the reforms initiated in the insurance sector.

Indian Bank, a major commercial bank in South India, has launched Rural Credit Franchisee (RCF) model for lending money to small borrowers in villages. The study aims to study the business model, the profile of ultimate borrowers and their credit requirements and to study the economics of the model.

Data used for the study are mostly primary in nature collected from the RCFs and the rural borrowers. In addition, bank officials were interviewed and also data on loan accounts of RCFs were collected from the sample bank branches and the RCFs.

The RCF scheme is a novel micro finance scheme and it has showcased that the informal institutions can be linked with the formal credit institutions. The scheme has benefited all the stakeholders including the bank, the RCFs and the rural poor.

The study has covered majority of the RCFs of the bank in terms of number and volume of business under the scheme and hence the results indicate the performance of the entire portfolio of the bank under the scheme.

The study finds that the scheme has benefited all the stakeholders. It has particularly helped in creating competition amongst the rural moneylenders and thereby bringing down the cost of credit in rural hinterlands. Findings are strongly in favour of expanding/replicating the model by the other commercial banks and in all parts of the country, rather across the entire world.

The RCF model is one of its kind and the policy makers and regulators may encourage the scheme in order to attain inclusive economic growth. This is a first of its kind study investigating the operation of such a model.

The purpose of this paper is to contribute to the literature on the valuation of initial public offerings (IPOs). In particular, it tests the presence of over‐optimism when pricing IPOs on the Italian Nuovo Mercato.

The paper investigates whether the analysts make systematic errors when forecasting the performance of the firm undergoing the IPO by comparing analysts’ ex‐ante expectations to actual ex‐post figures. Using a sample of pre‐IPO analysts’ reports, the paper performs a regression analysis using the forecast errors (FE) of post‐issue sales as dependent variable in order to find out the determinants of mis‐valuation.

It is found that the Nuovo Mercato has been essentially a “market for projects” in which young enterprises endowed with a few tangible assets sold their business plans to the market exploiting high‐growth opportunities. In the aftermarket, stock and operating performances are found to be declining, falling short of initial expectations. The extent of the actual post‐issue growth was lower than the ex‐ante estimations by financial analysts, whose valuations were systematically upwardly biased. Affiliated analysts are found not to be more over‐optimistic than the unaffiliated. FE appear to be primarily driven by the extent of forecasted growth, by market sentiment and (inversely) by the size of the firm.

From the perspective of investors, this study contributes to the understanding of the helpfulness and limits of the analysts’ forecasts in investment decisions and, more generally, of the determinants of over‐optimism. This study addresses the issue of over‐optimism and provides empirical evidence of it. This paper also contributes to the literature on the rise and fall of the new European stock markets.

This study aims to find whether the Indian private corporate sector follow stable cash dividend policies, whether dividends smoothen earnings, estimate the implicit target dividend ratio, and examine the determinants along with speed of adjustment of dividends towards a long run target ratio.

The study uses the instrumental variable (IV) approach for dynamic panel data for 1971‐2010 periods controlling for economic reforms. The GMM‐in‐levels model, GMM‐in‐first‐differences and GMM‐in‐systems are alternatively estimated to include other lag structures.

In the post‐reform period lower dividends are consistent with rapid growth in the economic environment and the tendency to smoothen dividends has considerably decreased over time. The estimated model suggests dividends substitute for less opportunity for internal growth and increased general likening to relatively retain their earnings and finance their growth, unlike the past.

Limitation to capture substitution, ownership and self selection effects stems up from data as the Annual Studies RBI does not include such variables, does not capture qualitative data and disallows identification of the firm.

The paper documents long run trends and inter‐temporal dividend patterns controlling economic reforms for a relatively larger number of public limited firms nearing four decades for an emerging economy.

This is a first attempt to take a holistic view of dividend using rich set of unexplored dynamic panel data on Indian firms controlling for reforms using contemporary econometric models and analyzes issues relating determinants, smoothening and stability of the corporate dividend structure.

This paper aims to ascertain the behavioral issues in the usage of GPF (a DC scheme) by government employees in India. Using a unique data set of employees working in a central government office this paper attempts to ascertain whether the employees are utilizing the GPF in a way in which it was intended to be.

The paper utilizes the hypotheses testing approach in studying the behavior of participants.

The results suggest that employees in GPF accounts do not have sufficient balances to take care of their retirement needs and they are using these accounts more as long term saving accounts rather than retirement accounts. Besides, employees suffer from inertia in making contributions as well as withdrawals from their GPF accounts. Finally, the data demonstrate that there are gender differences in savings and women tend to have higher balances than their men counterparts.

Due to the small sample size the generality of the results is limited.

The results have the potential of influencing policy design in the post reform pension system.

Although the pensions literature has extensively covered the liabilities of the governments in defined benefit (DB) plans for their employees, not much literature is available on how government employees are utilizing the benefits which were intended for them in both DB and defined contribution (DC) schemes. The data set used in the study is unique and is the first attempt to understand government pension benefits in an empirical manner.