Underpricing of infrastructure of IPOs: evidence from India

This paper explores the underpricing of initial public offerings (IPOs) made by infrastructure companies in India from 2004 to 2010, and follows Dimovski who reported that in the Australian market, infrastructure IPOs did not produce underpricing returns that were statistically significantly different to zero. The objective of this paper is to investigate the underpricing of infrastructure IPOs in the emerging market of India and to explore factors that may influence the underpricing of infrastructure IPOs in India. The results show that, on average, the underpricing returns were 25.4% and statistically significantly different to zero, while money left on the table, in aggregate is not. In contrast to Australian evidence, significant underpricing in Indian infrastructure IPOs indicates greater risk of these investments. We find that oversubscription, government ownership and issue size are significant variables in explaining underpricing in Indian infrastructure IPOs.

Identifying attributes contributing to environmental sustainability of public-private partnership infrastructure projects

Due to increasing demands for new infrastructure and an aim to reduce initial public investment, Australian government agencies are increasingly using public-private partnerships (PPPs) as a form of delivery for infrastructure projects. Environmentally, there is growing pressure for the building industry in general to become more sustainable. Moreover, as the built environment continues to grow each year, the performance of buildings as a whole will need to continually improve purely for national energy consumption to remain stable. Based on a systematic and extensive review on relevant literature, this paper has identified the key attributes that will influence the environmental sustainability of infrastructure completed through a PPP. The key attributes are grouped into five groups defined by whom or what has the majority of control over the attribute. Meanwhile, the key attributes are explored and their influence on environmental sustainability justified. This paper was able to not only identify significant factors involved in creating environmental sustainability in infrastructure PPPs, but also trends of the key attributes. It has been found that (1) the longevity of the contract in a PPP project allows greater innovation into environmental sustainability than traditional methods of procurement, (2) innovation is a requirement for the improving upon environmental performance in the built environment, (3) improvements to environmental sustainability relies upon a positive relationship between economic and environmental benefits, and (4) the key attributes for PPP projects are decided upon relatively early in the contract. Due to space limit, detailed discussion on each of the identified attributes is not provided in this paper. Nonetheless, further research direction is discussed.

Do you really want to ask an underwriter how much money you should leave on the table?

This paper analyses whether the owners of companies seeking to list will leave less money on the table if underwriters are employed to price and market the issue. Our findings indicate that limited liability and Industrial company initial public offerings (IPOs) that have used underwriters have left
more money on the table than those not employing underwriters. Not only is there a direct cost in employing an underwriter but this study suggests there might also be an indirect cost. We also find that a positive forecast earnings per share yield may be useful in reducing the amount of money left on the table.

The characteristics of property trust IPOs in Australia

This paper follows Ling and Ryngaert (1997) and Brounen and Eichholtz (2001) who investigate the underpricing of REIT initial public offerings (lPOs) in the United States and Europe respectively. This study adds to the international literature by investigating Australian property trusts. It reports a variety of descriptive statistics on 37 Australian property trust IPOs from 1994 to 1999. What it also contributes is the finding that some IPOs have extremely low volumes of shares traded on the first day so the simple use of a closing price at the end of the first day to determine underpricing returns (without reference to the volume of trading) may not always be the optimum method of calculating these returns.

Characteristics and underpricing of Australian mining and energy IPOs from 1994 to 2001

This paper follows How (2000) who examined 130 Australian mining and energy initial public offerings (IPOs) from 1979 to 1990 to report an average 107.18 % underpricing return by those IPOs. This study updates that report by investigating 127 Australian mining and energy IPOs from 1994 to 2001 to find a substantially lower 17.93 % average first day return. These updated findings have implications for both new companies seeking to float and also for the subscribers wishing to invest in these new listings.

The pricing and underwriting costs of Japanese REIT IPOs

This study investigates 40 Japanese REIT IPOs during 2001 to 2006 and finds evidence that higher final offer prices are reflected in higher underpricing levels by such IPOs. There is also some evidence that the engagement of one of the big three Japanese underwriting firms suggests less money is left on the table. Economies of scale in underwriting fees for Japanese REIT IPOs are also found. Specifically, the percentage underwriting fees decrease with higher amounts of equity capital sought but the percentage fee decreases at a diminishing rate.

A duration analysis of the time from prospectus to listing for A-REIT IPOs

Dimovski (2010) finds that the time from prospectus registration to listing is significantly positively related to the amount of underpricing amongst 45 Australian Real Estate Investment Trust (A-REIT) initial public offerings (IPOs) from 2002 to 2008. This makes the understanding of the time from prospectus registration to listing for A-REITs an important matter. This study analyses 82 A-REIT IPOs from 1994 to 2008 using a Cox proportional hazard model to analyse the duration from prospectus date to listing date. The study finds that A-REIT IPOs issued after 2000 listed more quickly, as did those A-REITs that were underwritten and also those that sought to raise larger amounts of equity capital. Those that proposed higher debt to assets ratios in their prospectuses listed more slowly. When the data is partitioned into 1994 to 1999 and 2002 to 2008 groupings, earlier A-REIT IPOs listed more quickly if they were larger while in the more recent group, those that had higher debt to asset ratios took longer to fill their subscriptions.

A-REIT rights issues

Purpose – This is the first REIT paper to seek to empirically examine potential influencing factors on the discounts and underwriting fees of Australian REIT rights issues.

Design/methodology/approach – Using a methodology similar to Owen and Suchard, and Armitage, a sample of 62 A-REIT rights issues during 2001-2009 is analyzed. A variety of potential factors influencing discounts and underwriting fees are explored.

Findings – Over A$20 billion was raised by A-REIT rights issues during 2001-2009 (this around three times that raised through A-REIT initial public offerings during the same period). The mean offer price was discounted around 9.5 percent from the current market price and underwriting fees averaged 2.9 percent of gross proceeds raised – both substantially less than for industrial rights issues. The standard deviation of daily returns for the past year appears to influence the percentage discount offered to subscribers. This volatility was particularly noticeable in 2008 and 2009, during the global financial crisis, where new issues were discounted substantially so as to raise equity to repay debt. This historical risk variable appears paramount in determining the discounts to subscribers and fees to underwriters.

Practical implications – A-REITs seeking to minimize the discounts offered to subscribers and to minimize their underwriting costs with rights issue equity capital raisings must first minimize their share price volatility.

Originality/value – This paper adds to the international costs of capital raising literature of REITs by examining such costs with A-REIT rights issues and is the first paper to examine factors influencing these costs.

Underpricing of privatised IPOs: the Australian experience

We investigate the price performance of initial public offerings (IPOs) of formerly state-owned companies in Australia. On average, privatised IPOs in Australia are underpriced by about 11%, which is not significantly different from the magnitude of underpricing of the privately-owned IPOs and that of privatised share offerings in other OECD countries. While it appears that the magnitude of underpricing is correlated with the size of issues and the party affiliation of the presiding government, cross-sectional analysis of our sample does not support some traditional theoretical explanations of underpricing for privatised IPOs—only the market sentiment prior to the listing is identified as a significant factor in determining the degree of underpricing. We also investigate the impact of a two-tiered pricing structure on the performance of IPOs.

Youth mental health first aid: a description of the program and an initial evaluation

BACKGROUND: Adolescence is the peak age of onset for mental illness, with half of all people who will ever have a mental illness experiencing their first episode prior to 18 years of age. Early onset of mental illness is a significant predictor for future episodes. However, adolescents and young adults are less likely than the population as a whole to either seek or receive treatment for a mental illness. The knowledge and attitudes of the adults in an adolescent's life may affect whether or not help is sought, and how quickly. In 2007, the Youth Mental Health First Aid Program was launched in Australia with the aim to teach adults, who work with or care for adolescents, the skills needed to recognise the early signs of mental illness, identify potential mental health-related crises, and assist adolescents to get the help they need as early as possible. This paper provides a description of the program, some initial evaluation and an outline of future directions.

METHODS: The program was evaluated in two ways. The first was an uncontrolled trial with 246 adult members of the Australian public, who completed questionnaires immediately before attending the 14 hour course, one month later and six months later. Outcome measures were: recognition of schizophrenia or depression; intention to offer and confidence in offering assistance; stigmatising attitudes; knowledge about adolescent mental health problems and also about the Mental Health First Aid action plan. The second method of evaluation was to track the uptake of the program, including the number of instructors trained across Australia to deliver the course, the number of courses they delivered, and the uptake of the YMHFA Program in other countries.

RESULTS: The uncontrolled trial found improvements in: recognition of schizophrenia; confidence in offering help; stigmatising attitudes; knowledge about adolescent mental health problems and application of the Mental Health First Aid action plan. Most results were maintained at follow-up. Over the first 3 years of this program, a total of 318 instructors were trained to deliver the course and these instructors have delivered courses to 10,686 people across all states and territories in Australia. The program has also spread to Canada, Singapore and England, and will spread to Hong Kong, Sweden and China in the near future.

CONCLUSIONS: Initial evaluation suggests that the Youth Mental Health First Aid course improves participants' knowledge, attitudes and helping behaviour. The program has spread successfully both nationally and internationally.

Public definitions of success in weight management

Objective: To examine perceptions of success in weight control and future weight-control intentions in a community sample. Design: Cross-sectional postal survey. Subjects: There were 1500 adults randomly selected from the Electoral Roll of Victoria (47% response). Setting: Community. Main outcome measures: Retrospective weight change over previous 12 months; perceived weight-control success; future weight-control intentions. Statistical analyses: Pearson's χ² tests were used to compare perceived weight-control success by sex, and by age, education level, initial BMI, amount of weight change and weight-loss behaviour within sex. ANOVA was used to compare mean weight change associated with perceived weight control success within sex, and within age, education, body mass index and weight-loss behaviour by sex. The distribution (frequency) of weight-control intentions are reported within perceived weight-control success and amount of weight change. Results: One in two (53%) reported maintaining their weight within 1kg in the preceding 12 months, 26% of men and 21% of women reported weight gain and 20% of men and 26% of women reported weight loss. Almost one-third (30%) of those who maintained their weight considered themselves unsuccessful. A majority of those who lost weight considered themselves successful at controlling their weight. However, more than 45% of men who gained weight also considered themselves successful. Those who considered themselves unsuccessful experienced less weight loss (1.1 ± 3.9kg) than those who considered themselves quite successful (-1.4 ± 4.5 kg, P < 0.001) or very successful (-1.3 ± 7.8 kg, P < 0.001). Conclusion: Public views of what constitutes successful weight control may need to be reoriented to be consistent with public health goals.

Talent identification and risk management at AFL clubs : 'We'll only recruit public school boys in the future'

This paper will report on a research project funded by the Australian Football League (AFL).The research mobilises Foucault's later work on the care of the Self to focus on the ways in which player identities are regulated; and the manner in which players conduct themselves in ways that can be characterised as professional - or not.

The paper explores the forms of risk management that Clubs use in the processes of talent identification that they engage in as a consequence of AFL rules. The paper discusses how psychological profiling is used to identify character traits prior to initial recruitment in the draft or trading processes - and reports on suggestions that risk management in this increasingly commerciaIised context may lead to recruitment practices that exclude certain types of persons. from
certain types of backgrounds.

Exploring the relationship between media coverage and participation in entrepreneurship : initial global evidence and research implications

Using a set of variables measured in the Global Entrepreneurship Monitor (GEM) study, our empirical investigation explored the influence of mass media through national culture on national entrepreneurial participation rates in 37 countries over 4 years (2000 to 2003). We found that stories about successful entrepreneurs, conveyed in mass media, were not significantly associated with the rate of nascent (opportunity searching) or the rate of actual (business activities commenced up to 3 months old) start-up activity, but that there was a significant positive association between the volume of entrepreneurship media stories and a nation’s volume of people running a young business (that is in GEM terminology, a business aged greater than 3 but less than 42 months old). More particularly, such stories had strong positive association with opportunity oriented operators of young businesses. Together, these findings are compatible with what in the mass communications theory literature may be called the ‘reinforcement model’. This argues that mass media are only capable of reinforcing their audience’s existing values and choice propensities but are not capable of shaping or changing those values and choices. In the area covered by this paper, policy-makers are committing public resources to media campaigns of doubtful utility in the absence of an evidence base. A main implication drawn from this study is the need for further and more sophisticated investigation into the relationship between media coverage of entrepreneurship, national culture and the rates and nature of people’s participation in the various stages of the entrepreneurial process.

Case study of electronic networking in an initial teacher education course

Electronic networking ('computer-mediated communication1), considered to be ‘unique domain for educational activity’ (Harasim, 1989:50) and ‘new educational paradigm’ (Mason & Kaye, 1989:23), has been widely used and researched in K-12 schooling, place-based undergraduate subjects and distance education courses. However, only a limited number of reports of usage with experienced teachers (professional development), beginning teachers (induction support) and trainee teachers (initial training) have been published. Hence, little is known about the ways in which this new medium might contribute to the acquisition and maintenance of professional knowledge in the field of teacher education. The purpose of this study was to document an application of electronic networking in an initial 'school-based1 teacher education course. Three factors which were considered to be important in the adoption of electronic networking were specifically addressed: (a) the potential of the medium to attract and maintain a representative and comprehensive audience', (b) the willingness of participants to use the medium for the notation of ideas about teaching; and, (c) the extent to which reflection on practice was evident in network messages. This study also identified and investigated other effects which emerged as participants attempted to negotiate personal relationships with new technology. A case study was selected to investigate audience, notation, reflection, and other effects, in a particular application. Data were collected using participant observation, software-generated statistics, printed documentation, university records, questionnaires, interviews and content analysis of messages. These data were used to describe and analyse network participation by trainee teachers, classroom teachers and university staff. The data revealed that an audience did exist on the electronic network but that this was not comprehensive. Teachers had difficulty accessing the network because of other school commitments, access to equipment and personal competence with microcomputers. These difficulties indicated that developing and maintaining the teacher audience may be a major problem with electronic networking in initial teacher education. This case study revealed that deeply held concerns about notation of ideas by trainee teachers and classroom teachers can be powerful reasons for limited network participation. For trainee teachers, recording ideas publicly presented special difficulties associated with written communication. They were concerned about writing for an audience; about what to write about and how to write it. The loss of visual and verbal cues which form part of face-to-face communication was also a problem leading to concerns about how messages would be received by others. However, the overwhelming concern of almost all trainee teachers about presenting their own ideas was Tear of criticism' from peers (in particular), and other participants on the network. Trainee teachers expressed concerns about the 'dangers' of putting their thoughts in writing, the scrutiny their messages might have received from others, and the public 'criticism' about what they wrote which might have appeared on the network. Knowing that messages were stored on the network, and could be retrieved at some later date, heightened anxiety about the vulnerability of written communication; what was written on one occasion may have to be defended at some later date when the views expressed initially were no longer held. Classroom teachers were also unsure about recording their own ideas in an electronic form. Like trainee teachers, they were concerned about the scrutiny their contributions might receive from other users, and the lack of visual and verbal cues which they had learnt to use in face-to-face communication. Notating ideas in text-based messages which were archived (by the software), and retrievable by others later, was also daunting to many teachers. Another major 'danger' for teachers was the possible repercussions of 'public comment' about curriculum policy and initiatives which they thought might get them into 'trouble' with their employer. Since very few messages were contributed to conferences, there was little evidence of reflection in network communication. In the main, the network was not used to share information and ideas about curriculum and teaching. Public examples of collaboration between participants were not evident, and the 'special knowledge' held by members in each distinct group of users was not elaborated and discussed. Messages were not used to request information or clarification about issues, to outline the processes by which decisions about teaching were reached, or to synthesis ideas from different sources. The potential of the medium to operationalise reflective practice was not realised. Among the effects observed, the use of an anonymous account to access the network, and the impact this had on participation (in one conference) was considered to be a particularly significant finding. While the opportunity to systematically investigate the effects of anonymity on network participation and message contributions was not realised (by the author) while the research was in progress, the effects observed and discussed are considered to be important and worthy of further investigation. In this case study, the anonymous account helped trainee teachers mask concerns about personal writing skills and fear of criticism from others, indicating that anonymity may alter communication patterns, particularly in the early stages of network use. Given the data collected in this case study, and the interpretations placed on it by the author, a pessimistic assessment of the place of electronic networking in initial teacher education courses was presented. For this situation to change - that is, for electronic discussions to become more fully integrated into course activities - four issues which need to be addressed were identified and discussed. These included clarification of the role of collaboration amongst participants in initial teacher education, the ways in which collaboration can be facilitated using electronic networking, the problems of notation - such as the difficulty of expressing ideas about teaching in written form, and the concerns about permanently archived messages - for teachers and trainee teachers, and the lack of skills which many trainee teachers bring to electronic discussions. In the context of initial teacher education, it was suggested that these four aspects require clarification and development before the potential advantages of electronic networking can be realised. Some specific suggestions about how these issues might be resolved were presented.