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Full-Text Articles in Business

Dynamics Of Energy Consumption, Safdar Khan Dec 2005

Dynamics Of Energy Consumption, Safdar Khan

Safdar Khan

Extract:
Dynamics of Energy Consumption Pakistan has been facing severe imbalances in energy demand and supply for the last couple of decades. During early 1980s domestic supply of energy was fulfilling almost 86 percent of total domestic energy demand; a gap of 14 percent was being filled by imports. However, the demand – supply gap started increasing since then and reached to almost 47 percent by the year 2000 (see Figure S2.1).

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Ipo Long-Run Returns: A New Approach, Steven Dolvin, Mark Pyles Dec 2005

Ipo Long-Run Returns: A New Approach, Steven Dolvin, Mark Pyles

Steven D. Dolvin

The long-run underperformance of initial public offerings (IPOs) is heavily documented; however, researchers have been unable to consistently determine which IPO characteristics affect the level of underperformance. Our main contribution is to examine this relation using a unique, alternative approach that concentrates on pairs of IPOs issued on the same day, thereby avoiding many of the biases (e.g., overlapping time periods) embedded in previous studies. Over the period 1986 to 2000 we find that issues with lower initial returns, higher quality underwriters, and/or high technology status tend to have higher long-run returns. Note: Link is to the article on the …

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Venture Capitalist Quality And Ipo Certification, Steven Dolvin, Mark Pyles Dec 2005

Venture Capitalist Quality And Ipo Certification, Steven Dolvin, Mark Pyles

Steven D. Dolvin

The opportunity cost of going public is directly related to the level of information asymmetry associated with the issuing firm. Independent third parties, such as underwriters and venture capitalists, are believed to mitigate this asymmetry through certification, thereby reducing this cost. Existing studies illustrate that higher quality underwriters provide increased certification value; however, current research is essentially mute with regard to the effect of venture capitalist quality. We fill this gap, finding that higher quality venture capitalists also provide incremental certification value relative to those of lower quality. Additionally, we suggest that the most appropriate measure of venture capitalist quality …

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Penny Stock Ipos, Steven Dolvin, Daniel Bradley, John Cooney, Jr., Bradford Jordan Dec 2005

Penny Stock Ipos, Steven Dolvin, Daniel Bradley, John Cooney, Jr., Bradford Jordan

Steven D. Dolvin

We examine underpricing, long-run returns, lockup periods, and gross spreads for penny stock IPOs over the 1990-1998 period. We find that penny stock IPOs have higher initial returns than ordinary IPOs, but significantly worse long-run underperformance. We also find that penny stock IPOs have longer lockup periods and larger gross spreads. To explore the effect of potential market manipulation, we examine IPOs led by a group of underwriters that were the subject of SEC enforcement actions and/or other penalties. Penny stock issues led by these banks are particularly underpriced and underperform ordinary IPOs led by other underwriters. Note: Link is …

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Do Underwriters Create Value For Issuers By Subjectively Determining Offer Prices?, Steven Dolvin Dec 2005

Do Underwriters Create Value For Issuers By Subjectively Determining Offer Prices?, Steven Dolvin

Steven D. Dolvin

Many existing theories attempt to explain initial public offering (IPO) underpricing by suggesting that underwriters purposefully set offer prices below market value. These theories implicitly assume that underwriters have perfect foresight and can, with complete accuracy, place a value on issuing firms. This chapter evaluates this assumption by comparing offer prices set by underwriters to prices from three objective, valuation-based approaches. Relative to these estimates, the offer prices chosen by underwriters result in lower levels of underpricing, suggesting that the prices underwriters select are actually value creating for issuing firms in that they reduce the opportunity cost of issuance. Within …

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Economic Growth, Saving And Investment, Safdar Khan Dec 2004

Economic Growth, Saving And Investment, Safdar Khan

Safdar Khan

Extract:
Despite an evident slowdown in major economies around the global amidst a sustained rise in international oil prices, the domestic economy surpassed its growth target by a wide margin for the third consecutive year, witnessing a growth rate of 8.4 percent in FY05, the highest during the last two decades (see Figure 2.1 & 2.2).

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The Market Premium For The Option To Close: Evidence From Australian Gold Mining Firms, Simone Kelly Aug 2004

The Market Premium For The Option To Close: Evidence From Australian Gold Mining Firms, Simone Kelly

Simone Kelly

This paper assesses whether the market valuation of gold mining firms contain a premium for the option to close. Tests of whether observed market values incorporate operating flexibility is central to our understanding of the processes that drive market values and has implications for the relevance and suitability of known theoretical pricing frameworks. This paper assesses the relevancy of the option to close for mining firm valuation. This is achieved by examining 41 Australian gold mining firms listed on the Australian Stock Exchange from 1987 to 1994 that are actively engaged in gold mining extraction and production. A pooled cross-sectional …

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Macroeconomic And Financial Sector Comparison With Saarc And Asean Countries, Safdar Khan Dec 2003

Macroeconomic And Financial Sector Comparison With Saarc And Asean Countries, Safdar Khan

Safdar Khan

Extract:
Two distinct regional associations, SAARC and ASEAN, comprise over seventeen different economies of Asia. These economies differ from each other in terms of their age, size and economic performance. However, some comparisons can be drawn between these intra-regional economies on the basis of economic and financial performance for a uniform period of observation, spanning from 1990 to 2003.1 This chapter discusses the financial sector indicators of the SAARC and ASEAN countries under the framework of macroeconomic performance, with the objective of assessing the level of Pakistan’s performance in comparison with these countries.

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Financial Sector Deepening And Economic Growth In Pakistan, Safdar Khan Dec 2002

Financial Sector Deepening And Economic Growth In Pakistan, Safdar Khan

Safdar Khan

No abstract provided.

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