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Article
Publication date: 19 July 2018

Mattia Cattaneo, Paolo Malighetti, Chiara Morlotti and Stefano Paleari

This study aims to explore the propensity of university students to use different sustainable transport modes, taking into account individual and specific trip characteristics, as…

2877

Abstract

Purpose

This study aims to explore the propensity of university students to use different sustainable transport modes, taking into account individual and specific trip characteristics, as well as students’ psychological traits (i.e. attitudes).

Design/methodology/approach

Using the transport mode preferences of 827 students who responded to a travel survey, a two-step analysis is conducted. The first step examines the effects of individual characteristics, travel experience and origin or destination features on students’ stated preferences (i.e. self-selected values assigned to personal attitudes). The second step analyses students’ travel mode choices, given their intrinsic mobility attitudes.

Findings

The results suggest that informing students about environmental issues increases their propensity to use sustainable mobility, leading to an average decrease in private transport usage of 5.8 per cent. Interestingly, improving the public transport service and promoting sustainable transport mobility have different impacts on individual campus areas. For campuses located in the city centre and in the historical hamlet, improvements in public transport are found to decrease solo driving by 3.3 per cent and 5.3 per cent, respectively. In suburban areas, this value increases to 9.5 per cent.

Originality/value

This work makes two contributions to the literature. First, it focuses on an unexplored setting, namely, that of a multi-campus university, with districts located in three different areas. This is used to explain how students are influenced by their travel experience and the cultural framework in which they are embedded. Second, the two-step analysis leads to a deeper understanding of the differences between attitudes and “intrinsic attitudes”, and their relative influence on the preferred alternative.

Details

International Journal of Sustainability in Higher Education, vol. 19 no. 5
Type: Research Article
ISSN: 1467-6370

Keywords

Book part
Publication date: 10 November 2004

Lucio Cassia, Stefano Paleari and Silvio Vismara

In this chapter we study the peer comparable approach used for the valuation of companies that went public on the Italian Nuovo Mercato. In Italy, IPO prospectuses often report…

Abstract

In this chapter we study the peer comparable approach used for the valuation of companies that went public on the Italian Nuovo Mercato. In Italy, IPO prospectuses often report the valuation methods used by investment banks. This allows us to analyze the accuracy of “real-world” valuation estimates. We show that underwriters rely on price-to-book and price-earnings multiples. The valuation estimates generated by these multiples are closest to offer prices. Conversely, when using enterprise value ratios comparable firms’ multiples are typically higher than those of the firms going public. We argue that underwriters have the possibility to select comparables that make their valuations look conservative.

Details

The Rise and Fall of Europe's New Stock Markets
Type: Book
ISBN: 978-0-76231-137-8

Article
Publication date: 15 May 2007

Stefano Paleari and Silvio Vismara

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…

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Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

Managerial Finance, vol. 33 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 26 September 2008

Michele Meoli, Stefano Paleari and Giovanni Urga

The purpose of this paper is to report on the study of the two acquisitions of Telecom Italia carried out by Olivetti and Pirelli in the last decade, to evaluate how changes in…

1007

Abstract

Purpose

The purpose of this paper is to report on the study of the two acquisitions of Telecom Italia carried out by Olivetti and Pirelli in the last decade, to evaluate how changes in ownership structure and corporate governance affected minority protection.

Design/methodology/approach

The paper presents an analysis of how Olivetti's and Pirelli's takeovers were achieved. Then the authors contrast the two operations with regards to extraction of private benefits and expropriation of minorities' wealth.

Findings

Shows that, in the case of Telecom Italia, the implementation of pyramids is connected with the existence of large private benefits, and that the acquisitions resulted in the substantial expropriation of minority shareholders.

Research limitations/implications

The analysis is referred to a very unique case. While a lot can be learnt from this approach, generalisations are not trivial.

Practical implications

The conclusion is that groups owning several listed companies deserve a special discipline, as many are the policy implications of their presence in financial markets.

Originality/value

Proposes an ad hoc methodology to consider companies from the top to the bottom of the pyramid chain, and to put in a common framework the non‐simultaneous operations linked by a common strategic goal, namely an acquisition. Further, a set of governance lessons is provided.

Details

International Journal of Managerial Finance, vol. 4 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

Book part
Publication date: 10 November 2004

Abstract

Details

The Rise and Fall of Europe's New Stock Markets
Type: Book
ISBN: 978-0-76231-137-8

Book part
Publication date: 10 November 2004

Abstract

Details

The Rise and Fall of Europe's New Stock Markets
Type: Book
ISBN: 978-0-76231-137-8

Book part
Publication date: 10 November 2004

Giancarlo Giudici and Peter Roosenboom

With the opening of the Nouveau Marché in France in 1996, followed by the Neuer Markt in Germany in 1997 and the Nuovo Mercato in Italy in 1999, the opportunities for small…

Abstract

With the opening of the Nouveau Marché in France in 1996, followed by the Neuer Markt in Germany in 1997 and the Nuovo Mercato in Italy in 1999, the opportunities for small companies to obtain a listing on European exchanges were growing rapidly. Other European countries with new stock markets included Belgium, Denmark, Finland, Greece, Ireland, the Netherlands, Poland, Portugal, Spain, Sweden and Switzerland. These stock markets had one common aim – to attract early stage, innovative and high-growth firms that would not have been viable candidates for public equity financing on the main markets of European stock exchanges. Of these new markets, the Neuer Markt emerged as Europe’s answer to NASDAQ.

Details

The Rise and Fall of Europe's New Stock Markets
Type: Book
ISBN: 978-0-76231-137-8

Article
Publication date: 7 September 2015

Michele Meoli, Andrea Signori and Silvio Vismara

– The purpose of this paper is to relate the fees paid to IPO underwriters to the nature and quality of the services they provide.

Abstract

Purpose

The purpose of this paper is to relate the fees paid to IPO underwriters to the nature and quality of the services they provide.

Design/methodology/approach

Controlling for the characteristics of the firm going public, the risk associated with the offering, and the reputation of the underwriter, the authors study on a sample of Italian IPOs whether a formal commitment by underwriters to provide ancillary services allows them to charge higher fees.

Findings

The authors document that asking underwriters to stabilize stock price is costly to the issuer, while to support liquidity is not. The authors’ also show that underwriters stabilize IPOs that really need it, whereas the provision of liquidity support does not seem to be always aligned with the issuer’s interest.

Originality/value

Investigating the Italian underwriting market is instructive for two main reasons. First, the institutional setting in IPOs is similar to most continental European countries, but significantly different from the US market. For instance, allocation policies in US IPOs are discretionary for both retail and institutional investors, while in Europe shares cannot be discretionarily allocated to retail investors. Second, the Italian market offers the opportunity to study the going-public decision outside the typical Anglo-Saxon financial systems. This is of interest because while both the UK and the USA have well-developed equity markets and a related industry of financial intermediation centered on providing equity, our analysis sheds light on financial intermediation of IPOs in a bank-centered system.

Details

International Journal of Managerial Finance, vol. 11 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 2 March 2015

Alessandra Colombelli

The purpose of this paper is to identify the factors affecting the growth of companies listed on the Alternative Investment Market (AIM), the London Stock Exchange market for…

1855

Abstract

Purpose

The purpose of this paper is to identify the factors affecting the growth of companies listed on the Alternative Investment Market (AIM), the London Stock Exchange market for young and growing companies.

Design/methodology/approach

The author investigates post-initial public offering (IPO) growth for a panel of 665 companies listed on the AIM between 1995 and 2006. The empirical model uses the generalized method of moment-System (GMM-SYS) estimator.

Findings

The findings confirm that small companies listed on the AIM grow more quickly after the IPO. It seems that both human capital and firm characteristics are important determinants of their rapid growth.

Practical implications

The results of this study have some implications for policy. Policy makers should take account of the relevance of an efficient financial system. It is important also to consider the process of transformation of the cultural and behavioural attitudes of various countries towards entrepreneurship.

Originality/value

This paper analyses the determinants of firm growth in a particular entrepreneurial setting, that is, IPO on the AIM, the sub-market of the London Stock Exchange.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 21 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 30 March 2021

Yuxin Wang and Guanying Wang

The purpose of this paper is to explore how the price limit policy implemented in 2014 affects initial public offering (IPO) underpricing and long-term performance in China.

Abstract

Purpose

The purpose of this paper is to explore how the price limit policy implemented in 2014 affects initial public offering (IPO) underpricing and long-term performance in China.

Design/methodology/approach

The data are the IPOs from Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) between 2004 and 2018. The data are firstly divided into the IPOs before the price limit policy and the IPOs after the price limit policy according to the time of issuance. Then the two groups are divided into 4 subsamples according to the market blocks and the P/E ratio. The authors use multiple regression models to explore the effect of price limit policy in each subsample.

Findings

The first-day price limit system for IPOs is similar to the upward fuse mechanism, the purpose of which is to suppress IPO underpricing. However, this study finds that the policy does not suppress IPO underpricing, but increases the underpricing rate in all subsamples. Besides, the long-term performance in each subsample is different from each other. Main Board stocks’ long-term performance is worse after the policy. The policy makes Small and Medium Enterprise Board (SME Board) and Growth Enterprise Market Board (GEM Board) stocks with high P/E ratios perform better in the long term. For SME Board and GEM Board stocks with low P/E ratios, the policy makes no significant effect.

Practical implications

Good policy intentions may sometimes lead to counterproductive effects. However, since the long-term performance of each subsample is different, it is difficult to judge whether the policy should continue to be implemented or cancelled. Implementing different policies for different subsamples may be a better way to solve this problem.

Originality/value

This paper contributes to the study of IPO underpricing and long-term performance from the perspective of price limit policy.

Details

Managerial Finance, vol. 47 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

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