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Book part
Publication date: 4 April 2024

Haoyu Gao, Ruixiang Jiang, Junbo Wang and Xiaoguang Yang

This chapter investigates the cost of public debt for firms using a comprehensive sample consisting of 17,368 industrial bond issues from 1970 to 2011. The empirical evidence…

Abstract

This chapter investigates the cost of public debt for firms using a comprehensive sample consisting of 17,368 industrial bond issues from 1970 to 2011. The empirical evidence shows that yield spreads for seasoned bond issues are significantly lower than those for initial bond issues. This seasoning effect is robust across different sample periods, subsamples, and model specifications. On average, the yield spreads for seasoned bond issues are around 50 bps lower than those for initial bond issues. This difference cannot be explained by other bond and firm characteristics. The seasoning effect is more pronounced for firms with higher levels of uncertainty, lower information disclosure quality, and longer time intervals between the first and subsequent issues. Our empirical findings provide supportive evidence for the extant theories that aim to rationalize the information role in determining the cost of capital.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-83753-865-2

Keywords

Article
Publication date: 31 May 2023

Darshana Palkar

Existing studies suggest that negative impacts emanating from corporate fraud revelations may diffuse to other firms through lower trust and lower market participation. Extending…

Abstract

Purpose

Existing studies suggest that negative impacts emanating from corporate fraud revelations may diffuse to other firms through lower trust and lower market participation. Extending this literature stream, the authors examine whether corporate fraud revelations are associated with higher costs of raising capital through initial public offerings (IPOs) for industry peers.

Design/methodology/approach

The authors employ several analysis techniques including univariate analysis, multivariate regressions, propensity score matching methodology, and probit estimation. The sample consists of 3,015 US IPO firms for the 1996–2021 period.

Findings

By adopting US private securities class action lawsuits as a proxy for the presence of corporate fraud, the authors find that fraud revelations are associated with higher IPO underpricing, higher post-IPO stock return volatility and increased likelihood of withdrawal from the offering for industry peers. The findings are robust to alternative industry definitions and litigation proxies and to the inclusion of a battery of controls, including industry, state and year fixed effects.

Originality/value

This study presents private firms with an additional industry litigation factor to consider when assessing the marginal costs of going public.

Details

International Journal of Managerial Finance, vol. 20 no. 2
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 8 June 2023

Waqas Mehmood, Anis Ali, Rasidah Mohd-Rashid and Attia Aman-Ullah

The purpose of this study is to look at how Shariah-compliant status and Shariah regulation affect the demand for initial public offerings (IPOs) in Pakistan. The…

Abstract

Purpose

The purpose of this study is to look at how Shariah-compliant status and Shariah regulation affect the demand for initial public offerings (IPOs) in Pakistan. The Shariah-compliant status, which is seen as a method that offers a credible signal to investors, may explain the anomaly in IPO demand.

Design/methodology/approach

This research used multivariate and quantile regression models to assess data from 85 IPOs issued on the Pakistan Stock Exchange between 2000 and 2019.

Findings

Shariah-compliant status has a considerable negative association with IPO demand. Nevertheless, there is a considerable positive association among Shariah regulation and IPO demand. Furthermore, the interaction among regulatory quality and Shariah-compliant status has a considerable strong influence on IPO demand. As a consequence, the findings show that Shariah-compliant firms might possibly attract the attention of investors. Investors were found to concur on the amicability of rigorous rules and permissible Shariah-compliance aspects.

Research limitations/implications

Future studies could analyse the financial ratio benchmark (cash and debt) to determine the Shariah-compliant status and Shariah regulation to better understand the problem of IPO demand in the context of Pakistan.

Practical implications

The outcomes of this research are useful for issuers and underwriters in comprehending the characteristics that influence high and early IPO success. Such knowledge may assist issuers and underwriters in responsibly planning and managing the IPO process.

Social implications

The results may be useful to investors looking for critical information in prospectuses to make the best choice when subscribing to IPOs in Pakistan.

Originality/value

This is one of the first studies to provide empirical data on the links among Shariah-compliant status, Shariah regulation and IPO demand in Pakistan. Furthermore, this research demonstrates the interaction impact of regulatory quality and Shariah-compliant status on IPO demand.

Details

Journal of Money Laundering Control, vol. 27 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

Open Access
Article
Publication date: 23 February 2024

Emmadonata Carbone, Donata Mussolino and Riccardo Viganò

This study investigates the relationship between board gender diversity (BGD) and the time to Initial Public Offering (IPO), which stands as an entrepreneurially risky choice…

Abstract

Purpose

This study investigates the relationship between board gender diversity (BGD) and the time to Initial Public Offering (IPO), which stands as an entrepreneurially risky choice, particularly challenging in family firms. We also investigate the moderating role of family ownership dispersion (FOD).

Design/methodology/approach

We draw on an integrated theoretical framework bringing together the upper echelons theory and the socio-emotional wealth (SEW) perspective and on hand-collected data on a sample of Italian family IPOs that occurred in the period 2000–2020. We employ ordinary least squares (OLS) regression and alternative model estimations to test our hypotheses.

Findings

BGD positively affects the time to IPO, thus, it increases the time required to go public. FOD negatively moderates this relationship. Our findings remain robust with different measures for BGD, FOD, and family business definition as well as with different econometric models.

Originality/value

The article develops literature on family firms and IPO and it enriches the academic debate about gender and IPOs in family firms. It adds to studies addressing the determinants of the time to IPO by incorporating gender diversity and the FOD into the discussion. Finally, it contributes to research on women and outcomes in family firms.

Details

Management Decision, vol. 62 no. 13
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 4 January 2024

Kejing Chen, Xiaolin Li, Qingqing Wan, Jing Ye and Mo Yang

Based on the textual-analyzed data covering 2148 IPO firms in China’s stock market during the 2007–2018 period, the authors’ purpose is to examine the influence of anti-takeover…

Abstract

Purpose

Based on the textual-analyzed data covering 2148 IPO firms in China’s stock market during the 2007–2018 period, the authors’ purpose is to examine the influence of anti-takeover provision (ATP) adoption on initial public offerings (IPO) underpricing and identify the reducing effect of the former.

Design/methodology/approach

The authors examine the sample consisting of Chinese A-share listed IPO firms between 2007 and 2018 from China Stock Market Accounting Research and Chinese Research Data Services, with ATP data collected from the IPO firm chapters. Specifically, the authors use text analysis to identify whether there are ATPs in the IPO firm chapters, as well as the number of ATPs. H1: IPO underpricing is less severe for firms adopting ATPs. H2: The effect of ATP adoption on IPO underpricing is more salient for firms in worse information environments.

Findings

The authors examine the influence of ATP adoption on IPO underpricing and identify the reducing effect of the former. This effect can be explained by the fact that adopting ATPs in IPO firm chapters can reduce information asymmetry to a large extent by helping external investors obtain more private information, which alleviates IPO underpricing. The authors also find that the reducing effect is more significant in the worsened information environment. Furthermore, the authors explore the influence of adopting ATPs on other IPO characteristics and find positive effects on IPO over-subscription, funds raised and trading activity and negative effects on listing fees.

Originality/value

This study mainly contributes to the literature from the following two aspects. First, the study enriches the literature about the influencing factors of IPO underpricing. Second, the study also enriches the literature about the economic consequences of ATP adoption. This study also has important policy implications. With the coming of the era of decentralized ownership in China’s capital market, ATP adoption has become more important and attracted more attention. Also, investors focus more on pricing efficiency. The findings in this paper provide a more comprehensive understanding of the relationship between ATP adoption and IPO underpricing.

Details

China Accounting and Finance Review, vol. 26 no. 1
Type: Research Article
ISSN: 1029-807X

Keywords

Expert briefing
Publication date: 20 March 2024

Yet this follows a government directive that the company cancel increases in its maximum sustainable capacity (MSC) of crude oil production from 12 million barrels per day (b/d…

Article
Publication date: 14 November 2023

Yasir Abdullah Abbas, Nurwati A. Ahmad-Zaluki and Waqas Mehmood

This paper examines the relationship between the extent and quality of the four dimensions of corporate social responsibility disclosure (CSRD) namely community, environment…

Abstract

Purpose

This paper examines the relationship between the extent and quality of the four dimensions of corporate social responsibility disclosure (CSRD) namely community, environment, workplace and marketplace with the long-run share price performance of Malaysian initial public offering (IPO) companies.

Design/methodology/approach

This study utilised secondary data by the content analysis of the annual reports and Datastream of 115 IPOs listed from 2007 to 2015 in Malaysia. The IPO’s performance was determined by calculating the return measures under the equally weighted and value-weighted schemes of the mean abnormal returns and buy-and-hold abnormal returns covering the three years post-listing using the event-time approach.

Findings

The findings demonstrate that Malaysian IPOs experience substantial overperformance and underperformance when both the IPO performance measures are benchmarked against the matched companies and market. The results indicated that the extent and quality of the community and environment CSRD dimensions are positively and significantly correlated to the IPO’s performance. On the other hand, the extent and quality of the workplace and marketplace CSRD dimensions are negatively and significantly correlated to the IPO performance.

Practical implications

Malaysian regulators could benefit from these findings in their endeavour to carry out a reform process on CSRD to improve its quality. The results of this study are important to investors, regulators, non-government organisations, communities and policymakers. They also enhance the understanding of companies about the importance of disclosing greater CSR information to improve their performance and profitability.

Originality/value

To the researchers' best knowledge, this study provides new insights into the association between CSRD and the performance of Malaysian IPO companies, which is considered important.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 28 February 2024

Rosella Carè, Rabia Fatima and Nathalie Lèvy

The concept of banking reputation has gained significant attention due to its relevance in the banking industry. A strong reputation has become crucial for a bank’s success, as it…

Abstract

Purpose

The concept of banking reputation has gained significant attention due to its relevance in the banking industry. A strong reputation has become crucial for a bank’s success, as it affects trust, credibility and stakeholders' perceptions. However, understanding and managing reputation in the banking sector involves several challenges. This study aims to analyze the field of banking reputation research through bibliometric analysis.

Design/methodology/approach

It explores the evolution of research in this area, identifies key journals, articles and authors, examines the main research streams, and identifies research fronts and opportunities for future advancement.

Findings

The findings reveal that banking reputation research has evolved over time, with multiple perspectives and viewpoints. Key journals and authors in the field are identified, and leading research streams are highlighted. The study also uncovers the conceptual and intellectual structure of the research domain, providing insights into the complex and multidimensional nature of banking reputation. Furthermore, the study emphasizes the importance of corporate social responsibility, sustainability practices and gender diversity in shaping a bank’s reputation. These factors play a significant role in attracting and retaining customers, accessing financial markets and securing funding.

Research limitations/implications

The results contribute to the existing body of knowledge and provide researchers and practitioners with valuable insights for further exploration.

Originality/value

The paper concludes by outlining potential avenues for future research in the field of banking reputation.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 23 January 2024

Shreya Sangal, Gaurav Duggal and Achint Nigam

The purpose of this research paper is to review and synthesize the role of blockchain technology (BCT) in various types of illegal activities, including but not limited to fraud…

Abstract

Purpose

The purpose of this research paper is to review and synthesize the role of blockchain technology (BCT) in various types of illegal activities, including but not limited to fraud, money laundering, ransomware attacks, firearms, drug tracking, cyberattacks, identity theft and scams.

Design/methodology/approach

The authors conducted a review of studies related to illegal activities using blockchain from 2015 to 2023. Next, a thematic review of the literature was performed to see how these illegal activities were conducted using BCT.

Findings

Through this study, the authors identify the relevant themes that highlight the major illegal activities performed using BCT, its possible steps for prevention and the opportunities for future developments. Finally, the authors provide suggestions for future research using the theory, context and method framework.

Originality/value

No other research has synthesized the illegal activities using BCT through a thematic approach to the best of the authors’ knowledge. Hence, this study will act as a starting point for future research for academic and technical practitioners in this area.

Details

Journal of Information, Communication and Ethics in Society, vol. 22 no. 1
Type: Research Article
ISSN: 1477-996X

Keywords

Expert briefing
Publication date: 28 February 2024

The IMF has revised downwards its forecast for Saudi GDP growth in 2024 to 2.7% but raised its 2025 forecast to 5.5%. This reflects a positive medium-term outlook for the Gulf…

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