Underpricing, risk management, hot issue and crowding out effects : evidence from the Australian resources sector initial public offerings

The main purpose of this paper is to explore the role of risk management, speculative industry competition effect and hot issue markets. We used a sample of 260 initial public offerings (IPOs) in the Australian resource sector for the 1994–2004 period to test the underpricing effect. We do not find any evidence that risk management can reduce the uncertainty relating to the new issue and hence alleviate the extent of underpricing. A plausible explanation for this lack of evidence is the poor information content of publicly available disclosures regarding risk management activities of IPO firms. We further provide evidence that the underpricing returns for resources IPOs are not impacted upon by the strength of alternative speculative IPO markets. We also show that the degree of underpricing adjusts to both market return in the preceding three months and the average underpricing of resources IPOs in the 12 month period leading to the float which offers an explanation to the hot issue effect observed in the IPO market.

Is privatisation good for investment in Australia?

Privatisation was expected to promote investment in the economy as part of improving dynamic efficiency. The relation between aggregate public and private investment in Australia is investigated in an endogeneous ECM framework. Model selection for a simple investment function allows restrictions for neoclassical crowding out or Keynesian crowding in (after Aschauer 1989) in a small open economy. An ECM is estimated including annual aggregate private investment, public investment, income, rate of return, average interest cost, exchange rate and inventories from 1960 to 2005. Public capital appears unresponsive to shocks and crowding out is not evident.

Microstructures and bond strengths of the calcium phosphate coatings formed on titanium from different simulated body fluids

Calcium phosphate (Ca-P) coatings were deposited on Ti substrates by a biomimetic method from m-SBF and 10× SBF, respectively. Comparative study of microstructures and bond strengths of the Ca-P coatings deposited from those different SBFs was carried out. Effect of the surface roughness of the substrates on the bond strength of the Ca-P coatings was also studied. Scanning electron microscopy (SEM), X-ray diffractometry (XRD), Fourier transformed infrared spectroscopy (FTIR), inductive coupled plasma spectrometry (ICP) and thermogravimetry (TG) were used to characterize the Ca-P coatings. The bond strengths between the coatings and Ti substrates were measured using an adhesive strength test. Results indicated that the ionic concentrations of the SBFs and the surface roughness of the substrate had a significant influence on the formation, morphology and bond strength of the Ca-P precipitates. The induction period of time to deposit a complete Ca-P layer from the m-SBF is much longer, but the Ca-P coating is denser and has higher bond strength than that formed from the 10× SBF. The Ti with a surface roughness of R_a 0.64 µm and R_z 2.81 µm favoures the formation of a compact Ca-P coating from the m-SBF with the highest bond strength of approximately 15.5 MPa.

Rapidly cured out-of-autoclave laminates: understanding and controlling the effect of voids on laminate fracture toughness

Voids are one of the most significant defects found within composites and have been demonstrated to reduce the performance of composite structures. The understanding of the impact of the size and distribution of voids on laminate properties is still limited because voids have proven difficult to deliberately control. This study aims to understand the mechanisms by which voids are generated within out-of-autoclave cured laminates. In this study, a process of prepreg conditioning was developed to control the level of voids within test laminates. Non-conditioned laminates highlighted signs of void growth (1.5%), while conditioned laminates showed consistently low levels of voids (<0.3%). Mass spectrometry indicated higher levels of aqueous and solvent volatiles within the non-conditioned prepreg. Finally, Mode II fracture testing revealed a 21% improvement in toughness for the non-voided laminates. A model on the effect of voids within the Mode II stress state has also been proposed.

Risk analysis in cost planning and its effect on efficiency in capital cost budgeting

Builds on earlier work which reported on the experience of the Hong Kong Government in using risk analysis techniques in capital cost estimating. In 1993 the Hong Kong Government implemented a methodology for capital cost estimating using risk analysis (ERA) in its public works planning. This calculated amount replaces the pre-1993 contingency allowance, which was merely a percentage addition on top of the base estimate of a project. Adopts a team approach to identify, classify and cost the uncertainties associated with a project. The sum of the average risk allowance for the identified risk events thus becomes the contingency. A study of the effect of ERA was carried out to compare the variability and consistency of the contingency estimates between non-ERA and ERA projects. The preliminary results of a survey showed a highly significant difference in variation and consistency between these groups. This analysis indicates the successful use of the ERA method for public works projects to reduce unnecessary and  exaggerated allowance for risk. However, the contingency allowance for ERA projects was also considered high. Adds data from the UK with descriptions of 41 private sector projects which fall into the non-ERA category and reflect better performance in the determining of contingency allowances.

Changes to (primary) school recess and their effect on children's physical activity: an Australian perspective

Headlines greet us on almost a daily basis lamenting the declining health of Australian children. They are said to be inactive, unfit, overweight and lacking in fundamental motor skills. It is a disturbing picture. Calls have gone out to parents to encourage their children to be more active and for schools to counter these problems by allocating more time to sport and physical education however, in both instances, there are particular problems to be addressed. One aspect of schooling that is rarely considered in discussions about how to increase children's activity levels is recess. This article examines the problems facing physical education and offers some suggestions as to how schools might preserve and promote physical activity during recess breaks.

The effect of contextual cues on children`s ability to remember an occurence of a repeated event

Purpose. This study examined the usefulness of contextual cues in enhancing the accuracy of children's narrative accounts of an occurrence of a repeated event.

Method. Children aged 6 to 7 years took part in the same staged event four times whereby 16 target details varied in each occurrence (e.g. the colour of a cloak varied each time). Three days later, the children's free recall of the final occurrence was elicited. This occurrence was identified in one of two ways. Either it was identified via the temporal term 'last', or else the term 'last' was combined with a feature related to the environmental context or setting that was unique to the occurrence (i.e., the interviewer referred to a new object that was worn throughout the occurrence or a new person who carried out the event). For each condition, performance was compared to that of children who experienced the event only once.

Results. Children's memory of details specific to the target occurrence was better after the single than the repeated event. However for both event types, children who were given the contextual and temporal cue performed better than those who were given the temporal cue only. The benefit of using a contextual cue did not result in an increase in errors.

Conclusion. Contextual cues (generated by an interviewer) can facilitate children's recall of an occurrence of an event. However, further research needs to determine whether this finding would generalize to a more practical situation where the child (rather than the interviewer) generates the cues.

Effect of creatine supplementation on housekeeping genes in human skeletal muscle using real-time RT-PCR

The present study examined the validity and reliability of measuring the expression of various genes in human skeletal muscle using quantitative real-time RT-PCR on a GeneAmp 5700 sequence detection system with SYBR Green 1 chemistry. In addition, the validity of using some of these genes as endogenous controls (i.e., housekeeping genes) when human skeletal muscle was exposed to elevated total creatine levels and exercise was also examined. For all except 28S, linear relationships between the logarithm of the starting RNA concentrations and the cycle threshold (C_T) values were established for ß-actin, ß2-microglobulin (ß₂M), cyclophilin (CYC), and glyceraldehyde-3-phosphate dehydrogenase (GAPDH). We found a linear response between C_T values and the logarithm of a given amount of starting cDNA for all the genes tested. The overall intra-assay coefficient of variance for these genes was 1.3% and 21% for raw C_T values and the linear value of 2^-C_T, respectively. Interassay variability was 2.3% for raw C_T values and 34% for the linear value of 2^-C_T. We also examined the expression of various housekeeping genes in human skeletal muscle at days 0, 1, and 5 following oral supplementation with either creatine or a placebo employing a double-blind crossover study design. Treatments were separated by a 5-wk washout period. Immediately following each muscle sampling, subjects performed two 30-s all-out bouts on a cycle ergometer. Creatine supplementation increased (P < 0.05) muscle total creatine content above placebo levels; however, there were no changes (P > 0.05) in C_T values across the supplementation periods for any of the genes. Nevertheless, 95% confidence intervals showed that GAPDH was variable, whereas ß-actin, ß₂M, and CYC were the least varying genes. Normalization of the data to these housekeeping genes revealed variable behavior for ß₂M with more stable expressions for both ß-actin and CYC. We conclude that, using real-time RT-PCR, ß-actin or CYC may be used as housekeeping genes to study gene expression in human muscle in experiments employing short-term creatine supplementation combined with high-intensity exercise.

The effect of grazing gastropods on meiofaunal colonisation of pneumatophores in a temperate mangrove

A field experiment was run to assess how grazing affects meiofaunal colonisation of mimic pneumatophores in a temperate mangrove. The effects of two manipulated factors were tested: mimics (made from wooden dowel rods) were either implanted into the sediment, or suspended just above the substratum; and in addition were either fitted with an aluminium 'snail barrier' or left without. The abundance of meiofauna was estimated on the 4 treatments after 2, 4, 8 and 16 weeks in situ in the intertidal region. After 16 weeks the meiofaunal assemblage was dominated by copepods, and the effect of suspension was highly significant on abundance of the epibiotic assemblage. Mimics suspended above the sediment, out of reach of snails, were fouled with a green algal layer whereas implanted units were not. In contrast, 'snail barriers' were found to be relatively ineffective in preventing access by the dominant herbivorous gastropod Bembicium melanostomum. Meiofaunal assemblages were more abundant on suspended units, but there was greater taxonomic richness at levels of phylum and class on implanted units than on   suspended units. The colonising meiofaunal assemblage was less abundant on implanted mimics than in previous experiments at this study site, and this was attributed to the present experiment being carried out during the dry summer period, when meiofauna on pneumatophores is in decline.

Still suffering from the `silo effect`: lingering cultural barriers to collaborative care

This research project sought to draw out the contesting definitions of collaborative care among professional subgroups in maternity services. The paper contrasts medical and social models of knowledge and reports on qualitative evidence from midwives and doctors in Australian hospitals. The evidence indicates that collaborative care is welcomed by both midwives and doctors but that there remains a lingering residue of the ‘silo effect’ of the ‘old’ professionalism, characterized by hierarchical relations, divergent philosophies and competing domains. Although a ‘new professionalism’ has emerged that challenges the old hierarchies and professional dependencies, it too harbours lingering residues of the former dichotomy between midwives and obstetricians. These tensions and enmities will need to be resolved before genuine collaboration may take full effect. The objective is a relationship focused model of care that transcends professional or woman-focused models. The ‘new’ professionalism may be expedited through mediation strategies, a version of which is the ‘sociological intervention method’ discussed in this article.

The effect of multiple deformations on the formation of ultrafine grained steels

A C-Mn-Nb-Ti steel was deformed by hot torsion to study ultrafine ferrite formation through dynamic strain-induced transformation (DSIT) in conjunction with air cooling. A systematic study was carried out first to evaluate the effect of deformation temperature and prior austenite grain size on the critical strain for ultrafine ferrite formation (ε C,UFF) through single-pass deformation. Then, multiple deformations in the nonrecrystallization region were used to study the effect of thermomechanical parameters (i.e., strain, deformation temperature, etc.) on ε C,UFF. The multiple deformations in the nonrecrystallization region significantly reduced ε C,UFF, although the total equivalent strain for a given thermomechanical condition was higher than that required in single-pass deformation. The current study on a Ni-30Fe austenitic model alloy revealed that laminar microband structures were the key intragranular defects in the austenite for nucleation of ferrite during the hot torsion test. The microbands were refined and overall misorientation angle distribution increased with a decrease in the deformation temperature for a given thermomechanical processing condition. For nonisothermal multipass deformation, there was some contribution to the formation of high-angle microband boundaries from strains at higher temperature, although the strains were not completely additive.

The effect of affect in organizational settings

The study of emotion and affect on organizational settings has been steadily gaining momentum for much of the last decade. Important catalysts in this process have been the Emonet e-mail discussion group and the biannual International Conferences on Emotions and Organizational Life. The articles in this volume represent a selection of the best papers presented at the fourth Conference (which was conducted in London, England, in June, 2004), together with invited papers by some of the leading scholars in the field.
The theme of the book, "the effect of affect in organizations," was chosen to capture the centrality of emotion and affect in everyday organizational life. The opening chapter, co-authored by Howard Weiss, one of the inventors of "Affective Events Theory" (AET), sets the scene. At the heart of AET is the idea that organizational members experience daily hassles and uplifts that are reflected in their attitudes and behaviours. Following chapters flesh out the way that AET can be applied, covering a variety of constructs that relate to organizational life, including emotional intelligence, motivation, employee monitoring of web access, and emotional regulation. Other chapters deal with other aspects of emotion in organizations, such as loneliness, leader-member relationships in teams, organizational justice, negative behaviour, creativity, and organizational reactions to crisis situations. In the final chapter, Rob Briner and his colleagues round out the theme in a critical account of emotion in organizations.

Effect of environmental flows on deep, anoxic pools

A series of field surveys were carried out on two permanent pools of the upper Glenelg River in SW Victoria, Australia. One was representative of the wider and deeper pools while the other was representative of the more-narrow and shallower pools. Both pools showed a typical seasonal cycle of warm, brackish, oxygen-poor, summer conditions and cool, oxygen-rich, low-salinity, winter conditions. The summer salinity increases were larger than expected, suggesting possible saline groundwater inflow from unidentified springs. Both pools contained anoxic water in their deeper sections but this was permanent only in the deeper pool. A simple model of the flushing rate of such anoxic pools subject to flows, such as environmental flow releases, was developed, based on an energy balance between the potential energy required to lift the anoxic layer and the kinetic energy derived from the river flow. The results were tested against and in agreement with the field measurements. The model also suggests that the anoxic layers are resilient to all but the largest environmental flows.

Absence of industry effect in modelling corporate collapse in Australia

This paper investigates whether or not an industry effect is present when modelling corporate collapse in Australia. The investigation is motivated by a lack of consistency in the literature regarding such an effect. Moreover, this paper makes a unique contribution by applying an innovative methodological approach, called Multi-Level Modelling (MLM), for model derivation. Unlike the traditional two-step methodology used so far in the literature, MLM carries out model derivation and tests for an industry effect in a single step. Finally, the effectiveness of MLM is demonstrated using a sample of Australian publicly listed companies during the period 1989 to 2005; empirical results point to the absence of an industry effect.

Building surfaces and their effect on the urban thermal environment

Use of high reflectance surfaces reduces the amount of solar radiation absorbed through building envelopes and urban structures and thus keeping their surfaces cooler. The cooling energy savings by using high reflectance surfaces have been well documented. Higher surface temperatures add to increasing the ambient temperature as convection intensity is higher. Such temperature increase has significant impacts on the air conditioning energy utilization in hot climates. This study makes use of numerical simulations to analyze the effect of commonly used building materials on the air temperature. A part of the existing CBD (Central Business District) area of Singapore was selected for the study. A series of Computational Fluid Dynamics (CFD) simulations have been carried out using the software CFX-5.6. It was found that at low wind speeds, the effect of materials on the air temperature was significant and the temperature at the middle of a narrow canyon increased up to 2.5[degrees]C with the facade material having lower reflectance.