Board structure and survival of new economy IPO firms

Research Question/Issue: This study examines the relevance of currently accepted best practice recommendations regarding board structure on the survival likelihood of new economy initial public offering companies. We argue that industry context determines governance outcomes. Research Findings/Insights: We study 125 Australian new economy firms listed between 1994 and 2002. Each firm is tracked until the end of 2007 for monitoring their survival. We find that board independence is associated with an increase in the likelihood of corporate survival. We also find that the benefits of board independence increase at a decreasing rate. Theoretical/Academic Implications: The standard best practice recommendation of board independence stems from the monitoring role of directors and is based on agency theory. The results from our study suggest that the recommendation regarding board independence does not work well for new economy firms. While the agency theory based model implies a monotonic relation between board independence and performance, our research suggests that the relationship is nonlinear. This variation occurs because of increased monitoring costs faced by outsiders due to higher information asymmetry and complexity of new economy firms. Our empirical results suggest that inside directors play a complementary role to outsiders in mitigating firm failure. Practitioner/Policy Implications: Our research offers insights to policy makers who are interested in setting best practice standards regarding board structure. Our research suggests that firm/industry characteristics play a crucial role in determining the optimal board structure. In firms/industries where outsiders face significantly higher information processing costs, insiders can play a valuable complementary role to outsiders in enhancing the effectiveness of the board. Thus future hard or soft regulations related to board structure should consider industry context.

Investment banks' entry into new IPO markets and IPO underpricing

We examine the relationship between investment banks' initial public offering (IPO) market shares and their prior IPO underpricing in the new IPO market for China-based companies on the Hong Kong Stock Exchange. To gain expertise in Chinese business practices, investment banks have the incentive to obtain business in this new IPO market by providing high offer prices to the issuer, leading to less underpricing and less money on the table. We hypothesize and find that the less an investment bank underprices Chinabased company IPOs, the greater its subsequent market share of China-based company IPOs in the Hong Kong Stock Exchange. Furthermore, this relationship is driven by a bank's initial China-based company IPO deals. These results suggest that in new IPO markets, investment banks' initial market shares, obtained through lower underpricing, help them grow their market shares in later periods, possibly through the expertise gained in the initial business.

The role of optimistic news stories in IPO pricing

This study investigates the influence of optimistic news stories on first-day pricing of initial public offerings (IPOs) in Australia between 1995 and 2005. Unlike the United States, Australia has no quiet-period regulation limiting the dissemination of information from media before IPO listing dates. We find that optimistic news stories are negatively associated with IPO underpricing. Results from a relative valuation model show that IPOs which received positive news stories ahead of the first trading day are not overpriced relative to their industry benchmarks. These results suggest that optimistic news stories mitigate information asymmetry and adverse selection problems. However, optimistic news stories do not appear to inflate the share price on the first day of trading. Our findings suggest that regulation mandating a 'quiet period' before the commencement of trading in IPOs is neither necessary nor desirable in the Australian environment.

Porque uma empresa faz um IPO? - um estudo de caso

O presente trabalho tem como objetivo entender as razões que levam uma empresa a empreender um processo de IPO – sigla inglesa para denominar primeiro oferecimento público de ações e neste contexto fazer um estudo de caso de uma empresa ferroviária de transporte de cargas, MRS LOGÍSTICA SA. Na última década o Brasil começou a experimentar uma onda de novas emissões, razões que justificam a proposição do trabalho. Para tal, as mais relevantes teorias já propostas foram analisadas e suportaram a análise de estudo de caso. Como resultado foi verificado que existem diferenças significativas através de mercados americanos e europeu, onde a Europa se caracteriza por um volume menor de novas emissões, com idade das empresas sendo bem maiores, com custos de emissões no mesmo nível dos Estados Unidos. O Brasil reúne características de ambos os mercados com a criação do novo mercado que é uma tentativa de dar maior transparência ao mercado e atrair investidores de menor porte para a bolsa de valores. Pelas análises do setor e pelo link das teorias com as perspectivas da MRS apresentadas em seu Plano de Negócios, o processo de se empreender um IPO na MRS se justifica e pode ser considerado uma estratégia viável e recomendável para o financiamento de seu crescimento.

Banrisul: do PROES ao IPO com governança corporativa

The scene prevalecente, in this work was to analyze the capacity of BANRISUL - Bank of the State of the Rio Grande Do Sul, as bank of public control, was assumen of the continued increase of the profitability of the Brazilian banking sector, remaining itself as a brought up to date financial institution tecnologicamente and managemental structuralized by mechanisms of brought up to date taking of decision and permanently revised in compatibility with the increasing instabilidades imposed for the incited competition of the banking sector in adequacy with the macroeconomic volatillidades. On the basis of the extremely positive performance in the analyzed period enters 1997 the 2007, the commercial strategy remains focada in the constant improvement of the rendering of services and in the growth of the credit average small the physical people and the e companies. The abrangência of the attendance points and the ample base of customers are aggregate advantages to an exclusive differential: the Banricompras, the biggest card of proper mark of Latin America. Stronger and income-producing, with an adequate and transparent management, the BANRISUL follows in propósito de to gain position of prominence in the national economic-financial scene.

IPO e o desempenho das empresas

A criação dos novos mercados europeus representou uma mudança substancial para suportar empresas inovadoras e de alto crescimento. No Brasil, não foi verificado nenhum estudo empírico que avaliasse o impacto do IPO para o desempenho das empresas. Para tal, utilizou-se dados de empresas que fizeram seu IPO durante os anos de 2004 até 2006, quando o mercado acionário passou por um importante progresso. O objetivo deste trabalho é analisar se as empresa melhoram seu desempenho após o IPO. Os resultados obtidos sugerem que as empresas brasileiras aceleram o crescimento dos ativos e receitas após o IPO, tornando-se menos alavancadas que no período pré-IPO. Estas mudanças indicam uma restrição de crédito antes do IPO. Assim, as empresas conseguem manter a mesma rentabilidade após o IPO. Além disso, as empresas utilizam-se do aumento do patrimônio líquido proveniente do IPO para fazerem captações de novas dívidas.

Pré-ipo capital infusion and underwriting in Brazil: a study on conflicts of interests in the universal banking system

Mercados financeiros e finanças corporativas

Estratégias de escopo em empresas que foram a IPO no Brasil : uma comparação entre empresas investidas e não investidas por private equity

Esta dissertação teve o objetivo de estudar as semelhanças e diferenças básicas de estratégia de negócios de empresas investidas por Private Equity comparadas às empresas não investidas. A pesquisa foi feita por meio de análise comparativa da estratégia de escopo de empresas brasileiras do segmento de consumo-cíclico que foram a IPO de 2007 a 2012, utilizando-se informações públicas (fontes secundárias). Foram avaliados o escopo horizontal (escala e variedade de bens e serviços), o escopo vertical (nível de integração vertical da cadeia de produção ou serviço), o escopo geográfico e a diversificação das empresas. Como principais resultados, foram identificados que ambos grupos de empresas tinham estratégias semelhantes de economia de escala e escopo geográfico e a diversificação estava sempre atrelada à economia de escopo. No entanto, a estratégia de diversificação diferia entre os grupos. Enquanto as empresas não investidas por Private Equity tinham estratégias de longo prazo, as empresas investidas focavam em estratégias de diversificação com ganhos de curto prazo.

Measuring Adherence to Antiretroviral Treatment: The Role of Pharmacy Records of Drug Withdrawals

This study aimed to evaluate adherence to anti-retroviral treatment (ART) among HIV + adults, assess its association with HIV viral load (VL) and identify factors associated to adherence. A survey involving a random sample of adults followed at a HIV/AIDS reference center in Sao Paulo city, Brazil, from 2007 to 2009 was done. A questionnaire was applied and data were retrieved from the pharmacy and medical records. The study involved 292 subjects: 70.2% men; median age: 43 years; median duration of ART: 8 years. 89.3% self-reported taken all prescribed pills in the last 3 days but only 39.3% picked up >= 95% of the prescribed ART from the pharmacy in the last 12 months. At the multivariate analysis having symptoms prior to ART, taking fewer ART pills, and not missing medical appointments were independently associated to higher adherence. Adherence was strongly associated with undetectable HIV VL. Rates of undetectable HIV VL did not differ from 80 to >= 95% of adherence.

Teoría celular de los sistemas IPO-NET

Director de tesis: Antonio Ocón Carreras. Programa de doctorado: Tecnologías de la información y sus aplicaciones