The direct costs of raising external equity capital for US REIT IPOs

Purpose – The purpose of this paper is to investigate the total direct costs of raising external equity capital for US real estate investment trust (REIT) initial public offerings (IPOs).

Design/methodology/approach – The study provides recent evidence on total direct costs for a comprehensive dataset of 125 US REIT IPOs from 1996 until June 2010. A multivariate OLS regression is performed to determine significant factors influencing the level of total direct costs and also underwriting fees and non-underwriting direct expenses.

Findings – The study finds economies of scale in total direct costs, underwriting fees and non-underwriting expenses. The equally (value) weighted average total direct costs are 8.33 percent (7.52 percent), consisting of 6.49 percent (6.30 percent) underwriting fees and 1.87 percent (1.22 percent) non-underwriting direct expenses. The study finds a declining trend of total direct costs for post 2000 IPOs which is attributed to the declining trend in both underwriting fees and non-underwriting direct expenses. Offer size is a critical determinant for both total direct costs and their individual components and inversely affects these costs. The total direct costs are found significantly higher for equity REITs than for mortgage REITs and are also significantly higher for offers listed in New York Stock Exchange (NYSE). Underwriting fees appear to be negatively influenced by the offer price, the number of representative underwriters involved in the issue, industry return volatility and the number of potential specific risk factors but positively influenced by prior quarter industry dividend yield and ownership limit identified in the prospectus. After controlling for time trend, the paper finds REIT IPOs incur higher non-underwriting direct expenses in response to higher industry return volatility prior to the offer.

Originality/value – This paper adds to the international REIT IPO literature by exploring a number of new influencing factors behind total direct costs, underwriting fees and non-underwriting direct expenses. The study includes data during the recent GFC period.

Hope for resurrecting a functionally extinct parrot or squandered social capital? Landholder attitudes towards the Orange-bellied Parrot (Neophema chrysogaster) in Victoria, Australia

In early 2010, after 27 years of recovery effort, the orange-bellied parrot (OBP; Neophema chrysogaster) was expected to be extinct in the wild within a few years. Shortly before the imminent wild extinction became evident, we surveyed landholders (114 responses of 783 surveys delivered) in part of the main non-breeding area, according to three classes of modelled habitat suitability ('high', 'medium', and 'low'). Predictions of the habitat models appear to correlate with landholder perceptions of the presence of OBP habitat on private land, thus the models appear a tractable way to identify key stakeholders worthy of priority consultation in relation to habitat works. Landholders were sympathetic to wetlands and birds, including OBPs (89.4% were aware of OBPs). Most indicated that they would be upset if the OBP went extinct and agreed that critical habitat should be protected; 80.7% were prepared to consider changes to the way they managed their land to benefit the species, and sought more information on how they could do so (64.0%). This study suggests that the habitat model usefully identified key stakeholders and the OBP enjoyed high awareness, concern, and engagement among many stakeholders, shortly before the species was considered functionally extinct. The maintenance of landholder support is likely to be critical if future attempts are made to reintroduce the species to the wild.

Social capital framework in the adoption of e-learning

This is a study of the influence of social and cultural factors on the adoption of e-­learning in higher education in Malaysia, Indonesia, Turkey, Singapore and Australia. Particular attention in each case was given to factors relating to social capital, attitudes and patterns of behavior in leadership, entrepreneurialism, and teaching and to broader sets of attitudes that shape general outlook. A case study approach was chosen in order to enable a richer and more finely grained analysis of the issues. The case studies are based on semi-­structured interviews and observations conducted over several years. This research shows that previously known factors that affect the adoption of e-­learning in higher education, namely, policy, guidelines, paradigm shifts and pedagogical change, are also significant in the contexts of each of the case studies in this research. However, this research shows that the adoption and uptake of e-­learning technologies is also strongly shaped by cultural and social factors but not in ways that might first have been expected. It is not so much that there are specific cultural and social factors relating to specific e-­learning technologies, but rather, that the degree of uptake of these technologies depends on teachers being encouraged, guided and assisted to innovate and adopt new technology. This can only occur when there is sufficient social capital, mediated through appropriate social networks, to build trust, overcome objections and anxieties, and generally motivate staff to engage in challenging, time-­consuming initiatives in e-­learning that generally do not promise immediate rewards.

Certain culture-­based issues emerged as important. These included staff mentoring, clustering through ‘bamboo networking’, trust-­building and overcoming fear of ‘losing face’ (kiasu), facilitating women to take the initiative and lead, developing sensitivity to cultural differences, encouraging entrepreneurialism and rewarding pioneering endeavours, all of which were present in varying degrees across all five case studies. There were subtle variations on a central theme, which was clearly that of the impact of social capital as a driver. It was social capital played out through personal relationships and social networks that most strongly influenced individual teachers to be sufficiently motivated to add to an already busy schedule by taking on the additional burdens of pioneering e-­learning technology and it was those social relationships that provided guidance and ongoing encouragement. As a consequence of these findings, this study offers a social capital model of e-­learning adoption, which suggests that the adoption and uptake of e-­learning technologies is strongly shaped by cultural and social factors.

Tertius tactics : 'mediated social capital' as a resource of power for traditional commercial news media

This essay reconceptualizes “social capital” as it relates to scholarship regarding the traditional news media. Much academic attention links the news media to Robert Putnam's view which focuses on social capital as enhancing “civic pride” and collective/community involvement. I suggest Putnam's perspective is often adopted without wider exploration of what the theory may offer the future of the commercial news media in western societies. This essay proposes the term “mediated social capital” may be a more suitable lens through which to consider this theory, taking a cue from Pierre Bourdieu who views social capital as a resource of power that may be utilized to maintain or build a position of advantage.

Costs of raising equity capital for U.S. REITs

The direct and indirect costs of raising equity capital by U.S. REITs through IPOs average 8.43% and 3.07%, respectively while these costs through SEOs average 4.63% and 1.18%, respectively. Ownership limit and the number of adverse risk factors identified in the IPO prospectus and underwriting syndicate structure determine such costs.

From tax expenditures to rebates: an 'output based equity' approach for Australia's retirement policies

Australia's retirement policies are geared to shifting reliance from the Age Pension to private superannuation, predominately via the use of tax expenditures. This article examines tax expenditures in this area and concludes that inequities and inefficiencies abound. Reform is required. It is argued that the functions of revenue collection and social support should be separated, and the use of tax expenditures in superannuation should be discarded. A rebate system1 or a spending initiative, is proposed. This 'output based equity' approach will address fairness and equity issues at the time of retirement - when full benefits are received.

Reviving the role of regulators in Bangladesh capital market

The capital market is visualised as a tool for economic development through mobilisation of scattered resources and their allocation to appropriate areas. The liquidity, solvency and efficiency of the economic system of a country can be better accomplished by capital market, when the banks and financial institutions of the country are reluctant to provide long-term and medium term resources for industrialisation and privatisation.

Banks have been traditionally major sources of all types of credits particularly industrial credits. Not only the banks these days are restricted to finance long-term credits due to short-term nature of the deposit- base of these banks, but also are struggling to overcome their liquidity problems. On the other hand, the development of financial institutions, the traditional suppliers of the long-term funds for private industry, is lying dormant due to the problems of profitability, liquidity and solvency of these institutions. Under this circumstances, the capital market beckons as the only major source of finance for industrialisation and privatisation. But the existing state of the capital market is hardly in a position to play as the mobiliser of resources for economic development.

Therefore, the country`s capital market needs structural change as well as proper regulation which are likely to improve the confidence of investors-both local and foreign and to boost the functions of capital market as well. The major regulators in Bangladesh capital market are Securities and Exchange Commission (SEC), Stock Exchanges, Registrar of Joint Stock Companies (RJSC) and ICB. In addition, the government has recently given permission to set up merchant banks to provide their support towards the growth, development and consolidation of capital market.

Has international borrowing or lending driven Australia's net capital inflow?

Over the recent decades the most significant global imbalances have been between Asia-Pacific economies, with most attention directed to the imbalances of the largest economies, China, Japan and the United States. In contrast, this paper examines how external account imbalances and real long term interest rates are determined in smaller open economies. It first derives the proposition that external imbalances and long term interest rates move together whenever saving-investment shocks are predominantly domestically sourced, but move oppositely when saving-investment shocks mainly emanate abroad. It then shows that in the case of Australia, an Asia-Pacific economy that has borrowed heavily from abroad since the mid 1980's, rising net capital inflow has had a statistically significant negative impact on domestic real interest rates. This suggests that over that time net international lending rather than net foreign borrowing was mainly responsible for the variation in its external imbalance and real interest rates.

Sectoral analysis on capital structure determinants among the Malaysia listed firms

This study highlights the sensitivity of capital structure determinants in each sector within the ensembles of Malaysia Listed Companies. Based on pooled OLS, fixed effect and Generalized Method of Moments analysis, the findings revealed that capital structure determinants vary across sectors due to its nature or characteristics.

'Everybody has settled in so well': How migrants make connections and build social capital in Geelong

Australian and Victorian Government policies encourage settlement in regional areas for international migrants, refugees and internal migrants. Migrants to regional areas are diverse in terms of their area or country of origin, skills and occupation, family status and other demographic characteristics. The regional cities to which they migrate are also varied in terms of their community resources, social and cultural capital. The objective shared by all of these cities is for migrants to engage successfully with their new communities. Just how this occurs is the subject of debate and a lack of clarity. This therefore calls for a sound, theoretically informed understanding of how employers and community groups (formal and informal) can effectively assist migrants to make social connections in regional cities, and practical strategies which respond to these insights. The well-established social determinants of health tell us that the more socially included, connected and stable workforce and their families are, the better will be their physical and mental health and wellbeing.

Online social capital : mood, topical and psycholinguistic analysis

Social media provides rich sources of personal information and community interaction which can be linked to aspect of mental health. In this paper we investigate manifest properties of textual messages, including latent topics, psycholinguistic features, and authors' mood, of a large corpus of blog posts, to analyze the aspect of social capital in social media communities. Using data collected from Live Journal, we find that bloggers with lower social capital have fewer positive moods and more negative moods than those with higher social capital. It is also found that people with low social capital have more random mood swings over time than the people with high social capital. Significant differences are found between low and high social capital groups when characterized by a set of latent topics and psycholinguistic features derived from blogposts, suggesting discriminative features, proved to be useful for classification tasks. Good prediction is achieved when classifying among social capital groups using topic and linguistic features, with linguistic features are found to have greater predictive power than latent topics. The significance of our work lies in the importance of online social capital to potential construction of automatic healthcare monitoring systems. We further establish the link between mood and social capital in online communities, suggesting the foundation of new systems to monitor online mental well-being.