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Full-Text Articles in Business
Information Asymmetry And The Cost Of Going Public For Equity Carve Outs, Steven D. Dolvin, Karen M. Hogan, Gerad T. Olson
Information Asymmetry And The Cost Of Going Public For Equity Carve Outs, Steven D. Dolvin, Karen M. Hogan, Gerad T. Olson
Scholarship and Professional Work - Business
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 …
Corporate Governance, Transparency And Performance Of Malaysian Companies, Mohd Che Haat, H. R. Raaman, Sakthi Mahenthiran
Corporate Governance, Transparency And Performance Of Malaysian Companies, Mohd Che Haat, H. R. Raaman, Sakthi Mahenthiran
Scholarship and Professional Work - Business
The paper aims to examine the effect of good corporate governance practices on corporate transparency and performance Malaysian listed companies.
Underpricing, Overhang, And The Cost Of Going Public To Preexisting Shareholders, Steven D. Dolvin, Bradford D. Jordan
Underpricing, Overhang, And The Cost Of Going Public To Preexisting Shareholders, Steven D. Dolvin, Bradford D. Jordan
Scholarship and Professional Work - Business
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.