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1 – 2 of 2Lerong He, James J. Cordeiro and Tara Shankar Shaw
The purpose of the research is to study how Chief Executive Officer’s (CEO’s) ownership, CEO’s structural and expertise power and underwriters’ reputation affect the initial…
Abstract
Purpose
The purpose of the research is to study how Chief Executive Officer’s (CEO’s) ownership, CEO’s structural and expertise power and underwriters’ reputation affect the initial public offering (IPO) lockup period.
Design/methodology/approach
The study uses the multivariate regression method to test the hypothesis on a sample of 1,071 US IPOs, which comprise 80 per cent of the total population of IPOs over the 1998-2002 period.
Findings
It was found that CEO equity ownership had a direct positive impact and two indicators of CEO positional power (CEO duality, founder status) and underwriter reputation had a direct negative impact on the length of the lockup period that results from IPO negotiations between the issuing firm and the underwriter. It was also found that underwriter reputation negatively moderates the impact of equity ownership (likely due to a substitution effect) and positively moderates the impact of CEO duality on lockup period length (by offsetting the impact of CEO positional power).
Originality/value
Previous studies have exclusively studied the affect of economic factors on IPO lockup. This paper extends the extant literature by studying the insider’s characteristics like CEO’s power and underwriter’s reputation on IPO lockup periods.
Details
Keywords
Tara Shankar Shaw and Sridhar Telidevara
Indian households having the below poverty line (BPL) ration card receive rice, wheat, sugar and kerosene from the Indian Targeted Public Distribution System (TPDS) at subsidized…
Abstract
Purpose
Indian households having the below poverty line (BPL) ration card receive rice, wheat, sugar and kerosene from the Indian Targeted Public Distribution System (TPDS) at subsidized rates. The paper uses the National Sample Survey Organization's consumption expenditure survey for the 61st round to study the causal effect of the BPL ration card on BPL households' calorie consumption. The paper aims to discuss these issues.
Design/methodology/approach
This causal effect is estimated by comparing per-capita-per-day calorie consumption of the BPL households having BPL card with that of a matched counterfactual BPL household from the same state not having BPL card, using stratified propensity score matching.
Findings
The BPL ration card was found to increase calorie consumption from cereals and decrease calorie consumption from non-cereal food items without affecting the overall calorie consumption of household. Thus, TPDS induces households to consume more cereals and less non-cereal without significantly changing the overall calorie consumption.
Research limitations/implications
The research methodology controls for selection bias due to observable variables. Further, research needed to devise experimental set up to control for the selection bias due to unobserved variables.
Originality/value
The paper uses the targeting error in identifying BPL households in TPDS as a quasi-experiment set up to study the causal effect of the BPL ration card.
Details