Business Commons^™

Fundamentals Of Investments: Valuation And Management, Steven Dolvin, Bradford Jordan, Thomas Miller

Steven D. Dolvin

Further Examination Of Equity Returns And Seasonal Depression, Steven D. Dolvin, Mark K. Pyles, Qun Wu

Steven D. Dolvin

Seasonal Affective Disorder (SAD) induces investors to shift resources away from risky investments (such as equity) and towards safer alternatives (such as fixed income) during the Fall, while stimulating the opposite action in the Winter. Existing studies, however, fail to account for the possibility that SAD could further motivate investors to shift exposure among different subsets of equity, rather than simply across broad asset categories. We explore this possibility by examining the impact of SAD on the returns of “safe” and “risky” equity sectors (i.e., industries), as well as on equity at different levels of market capitalization. We find the …

Momentum Trading In Sector Etfs, Steven Dolvin, Jill Kirby

Steven D. Dolvin

If markets were efficient, then strategies based on past price behavior would be essentially worthless. However, many traders follow investment plans that are designed to exploit momentum, particularly across sectors. This article examines one common, related trading rule: “There’s Always a Bull Market Somewhere.” Under this approach, investors buy (sell) past 12-month winners (losers). Prior studies find a positive abnormal return in the subsequent 12-month period following implementation of this strategy; however, no study examines the impact of such rules on the short-term trading patterns (returns and volume) of related securities. This article fills this gap, finding that ETFs representing …

Underpricing, Overhang, And The Cost Of Going Public To Preexisting Shareholders, Steven Dolvin, Bradford Jordan

Steven D. Dolvin

IPO underpricing has been extensively studied; however, its impact on the wealth of preexisting shareholders has not been closely examined. We address the question of whether or not periods of high underpricing adversely affect preexisting shareholders. We find that high levels of underpricing are associated with increased share retention, which effectively offsets much of the potential cost. Overall, we find that the percentage of shareholder wealth lost is surprisingly stable over time, unlike underpricing itself. We also find that many factors known to be related to underpricing are not significant determinants of the cost of going public to preexisting owners.

Prior Debt And The Cost Of Going Public, Steven D. Dolvin, Merk K. Pyles

Steven D. Dolvin

Previous studies find that firms with prior debt, particularly publicly rated, have lower information asymmetry and experience a lower opportunity cost of going public, as measured by underpricing. Subsequent research suggests that underpricing may be an inaccurate measure of indirect issuance costs. Thus, we replicate and extend existing studies to examine whether previously issued debt reduces the true opportunity cost of issuance. We find that private debt issues have little effect; however, firms with public debt (particularly rated) have both significantly lower levels of underpricing and lower issuance opportunity costs, as well as narrower filing ranges and smaller price revisions, …

Underpricing, Overhang, And The Cost Of Going Public To Preexisting Shareholders, Steven D. Dolvin, Bradford D. Jordan

Steven D. Dolvin

IPO underpricing has been extensively studied; however, its impact on the wealth of preexisting shareholders has not been closely examined. We address the question of whether or not periods of high underpricing adversely affect preexisting shareholders. We find that high levels of underpricing are associated with increased share retention, which effectively offsets much of the potential cost. Overall, we find that the percentage of shareholder wealth lost is surprisingly stable over time, unlike underpricing itself. We also find that many factors known to be related to underpricing are not significant determinants of the cost of going public to preexisting owners.

Prior Debt And The Cost Of Going Public, Steven D. Dolvin, Merk K. Pyles

Steven D. Dolvin

Previous studies find that firms with prior debt, particularly publicly rated, have lower information asymmetry and experience a lower opportunity cost of going public, as measured by underpricing. Subsequent research suggests that underpricing may be an inaccurate measure of indirect issuance costs. Thus, we replicate and extend existing studies to examine whether previously issued debt reduces the true opportunity cost of issuance. We find that private debt issues have little effect; however, firms with public debt (particularly rated) have both significantly lower levels of underpricing and lower issuance opportunity costs, as well as narrower filing ranges and smaller price revisions, …

Information Asymmetry And The Cost Of Going Public For Equity Carve Outs, Steven D. Dolvin, Karen M. Hogan, Gerad T. Olson

Steven D. Dolvin

We examine the relationship between asymmetric information and the cost of going public for equity carve-outs (ECOs) as compared to ordinary initial public offerings (IPOs). We decompose underpricing into the opportunity cost of issuance (OCI) and a measure of share retention. Compared to an average IPO, we find that ECOs have lower OCI and price revisions, but higher share retention and long-term returns. Compared to a matched sample of IPOs, however, we observe similar OCI and long-term returns, but still find ECOs have higher share retention. Our analysis suggests that documented pricing differences between ECOs and IPOs likely are attributable …

Earnings Guidance: How Should Companies Interact With The Market?, Steven D. Dolvin

Steven D. Dolvin

Steven Dolvin's contribution to the January/February Edition of BizVoice, magazine of the Indiana Chamber of Commerce.

S&P Etfs: Arbitrage Opportunities And Market Forecasting, Steven Dolvin

Steven D. Dolvin

The article examines the pricing differences between two S&P 500 ETFs (ticker symbols SPY and IVV) and the underlying stock index. The author finds that, on average, both ETFs trade at a premium relative to the S&P 500; however, the level of the daily premium (and, on occasion, discount) varies between the two securities, which creates the opportunity for arbitrage. Since the passage of Regulation NMS in mid-2005, the pricing differences, as expected, have declined, implying that any current/future arbitrage opportunity will be confined to periods of high market volatility, such as 2008. Beyond issues related to arbitrage, the author …

Asset Allocation For Retirement: Simple Heuristics And Target Date Funds, Steven Dolvin, William Templeton, William Rieber

Steven D. Dolvin

No abstract provided.

Daily Stock Returns: Momentum, Reversal, Or Both, Steven Dolvin, Mark Pyles

Steven D. Dolvin

Aftermarket Performance, Gross Spread, Lead Underwriter, And Price Revision, Steven Dolvin

Steven D. Dolvin

No abstract available. The author has four entries in this volume. Note: Link is to the catalog entry in WorldCat's catalog. Please see your local librarian for assistance in borrowing this item via interlibrary loan.

The Influence Of University Investment Education On Asset Allocation, Steven Dolvin, Mark Pyles, John Gonas

Steven D. Dolvin

No abstract provided.

The Effect Of Resale Constraints On Abnormal Returns Of Borrowers In Syndicated Loans, Steven Dolvin, Mark Pyles, Perry Woodside

Steven D. Dolvin

The Impact Of Bank Venture Capital On Initial Public Offerings, Steven Dolvin, Donald Mullineaux, Mark Pyles

Steven D. Dolvin

Information Asymmetry And The Cost Of Going Public, Steven Dolvin

Steven D. Dolvin

No abstract provided.

The Impact Of Bank Venture Capital On Initial Public Offerings, Steven Dolvin

Steven D. Dolvin

No abstract provided.

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

Steven D. Dolvin

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

Steven D. Dolvin

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

Steven D. Dolvin

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

Steven D. Dolvin