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.

Contingent Edis: a new contractual framework for minimizing the risk of incentive failures

Granting economic development incentives (or “EDIs”) has become commonplace throughout the United States, but the efficiency of these mechanisms is generally unwarranted. Both the politicians granting, and the companies seeking, EDIs have incentives to overestimate the EDIs benefits. For politicians, ribbon–cutting ceremonies can be the highly desirable opportunity to please political allies and financiers, and the same time that they demonstrate to the population that they are successful in promoting economic growth – even when the population would be better off otherwise. In turn, businesses are naturally prone to seek governmental aid. This explains in part why EDIs often “fail” (i.e. don’t pay–off). To increase transparency and mitigate the risk of EDI failure, local and state governments across the country have created a number of accountability mechanisms. The general trait of these accountability mechanisms is that they apply controls to some of the sub–risks that underlie the risk of EDI failure. These sub–risks include the companies receiving EDIs not generating the expected number of jobs, not investing enough in their local facilities, not attracting the expected additional businesses investments to the jurisdiction, etc. The problem with such schemes is that they tackle the problem of EDI failure very loosely. They are too narrow and leave multiplier effects uncontrolled. I propose novel contractual framework for implementing accountability mechanisms. My suggestion is to establish controls on the risk of EDI failure itself, leaving its underlying sub–risks uncontrolled. I call this mechanism “Contingent EDIs”, because the EDIs are made contingent on the government achieving a preset target that benchmarks the risk of EDI failure. If the target is met, the EDIs will ex post kick in; if not, then the EDIs never kick in.

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.

Investment coordination failures and the confidence channel of fiscal policy

Este trabalho desenvolve um novo "canal de Confiança" da política fiscal e caracteriza a política ótima quando esse canal é levado em consideração. Para esse objetivo, utilizamos um modelo estático com (i) concorrência monopolística, (ii) custos de ajustamento fixos para investir, (iii) complementaridade estratégica devido a informação imperfeita com respeito a produtividade agregada, e (iv) bens privados como substitutos imperfeitos de bens privados. Este arcabouço acomoda a possibilidade de falhas de coordenação nos investimentos, mas apresenta um equilíbrio único. Mostramos que a política fiscal tem efeitos importantes na coordenação. Um aumento dos gastos do governo leva a uma maior demanda por bens privados. Mais importante, este também afeta as expectativas de ordem superior com relação a demanda das demais firmas, que amplifica os efeitos do aumento inicial da demanda devido a complementaridade estratégica nas decisões de investimento. Como as demais firmas estão se deparam com uma demanda maior, espera-se que estas invistam mais, que por sua vez, aumenta a demanda individual de cada firma, que aumenta os incentivos a investir. Denominamos isto como o "canal de confiança" da política fiscal. Sob a ameaça de falhas de coordenação, a política fiscal ótima prescreve produzir além do ponto em que o benefício marginal resultante do consumo de bens públicos é igual ao custo marginal desses bens. Este benefício adicional vem do fato de que a política fiscal pode ampliar a coordenação dos investimentos.

Pregnancy outcomes in women with repeated implantation failures after intracytoplasmic morphologically selected sperm injection (IMSI)

Background: The purpose of this study was to compare laboratory and clinical outcomes of intracytoplasmic morphologically selected sperm injection (IMSI) and conventional intracytoplasmic sperm injection (ICSI) in couples with repeated implantation failures.Methods: A total of 200 couples with at least two prior unsuccessful ICSI cycles were enrolled: 100 couples were submitted to IMSI and 100 were submitted to routine ICSI. For IMSI, spermatozoa were selected at 8400x magnification using an inverted microscope equipped with Nomarski (differential interference contrast) optics. For conventional ICSI, spermatozoa were selected at 400x magnification. Clinical outcomes were evaluated between the two groups.Results: Study patients were comparable in age, number of treatment failures, aetiology of infertility, percentage of normal form assessed by MSOME (motile sperm organelle morphology examination), semen parameters, total number of oocytes collected, number of mature oocytes collected, total number of embryos transferred and number of high-quality embryos transferred. No statistically significant differences between the two groups were observed with regard to rates of fertilisation, implantation and pregnancy/cycle. Although not statistically significant, rates of miscarriage (IMSI:15.3% vs ICSI:31.7%), ongoing pregnancy (IMSI:22% vs ICSI:13%) and live births (IMSI:21% vs ICSI:12%) showed a trend towards better outcomes in the IMSI group. In addition, analysis of subpopulations with or without male factor showed similar results.Conclusions: Our results suggest that IMSI does not provide a significant improvement in clinical outcome compared to ICSI, at least in couples with repeated implantation failures after conventional ICSI. However, it should be noted that there were clear trends for lower miscarriage rates (approximate to 50% reduced) and higher rates of ongoing pregnancy and live births (both nearly doubled) within the IMSI group. Further confirmation as well as randomized large-scale trials are needed to confirm the beneficial effects of IMSI in couples with poor reproductive prognoses.

Implantation failures: Success of assisted hatching with quarter-laser zona thinning

Implantation failure after IVF is one of the factors associated with a reduced chance of pregnancy for some patients. Assisted hatching methodologies are designed to facilitate the embryo's escape from the zona pellucida, and this strategy has been suggested as a means of improving pregnancy rates in patients with previous implantation failure. The aim of this prospective and randomized study was to evaluate the efficacy of quarter-laser zona thinning assisted hatching (qLZT-AH) in improving the implantation of embryos in patients with previous implantation failure. A total of 150 patients with a history of previous implantation failure were treated with intracytoplasmic sperm injection, and allocated into two groups: group 1, only one previous implantation failure, and group 2, repeated implantation failures. The patients in each group were randomized at the time of embryo transfer into a control group (no qLZT-AH) or experimental group where qLZT-AH was performed. For patients with repeated implantation failures, the implantation rate in those who received laser-thinned embryos was significantly higher (P=0.02) than in those whose embryos were not laser-thinned (10.9 and 2.6% respectively). However, this difference was not observed in patients who presented with only one previous implantation failure. The data demonstrate that qLZT-AH is an effective strategy for improving the implantation of embryos in patients with repeated implantation failures.

Trade policy reform and poverty: successes and failures in Central America

Includes bibliography

Failures in the rehabilitation treatment with removable partial dentures

Background. Despite being functional and having aesthetic benefits, the acceptance of patients regarding the use of removable partial dentures (RPDs) has been low. In part, this is due to the deleterious effects that causes discomfort to the patient. Success depends not only on the care expended by the patient, including daily care and oral hygiene, but also on common goals set by their professional and clinical staff, aiming beyond aesthetics, to incorporate issues of functionality and the well-being of patients. Methods and results. For rehabilitation treatment with RPDs to reach the desired level of success without damaging the support structure, all the steps (diagnose, cavity preparation, adaptation of the metal structures, functional of distal extension and posterior follow-up) in the rehabilitative treatment should be carefully developed. A literature review was carried out, searching through MEDLINE (PubMed) articles published between 1965 and December 2012 including clinical trials and reviews about the use of RPDs. Conclusions. This study describes factors that lead to failures and complications in oral rehabilitation through the use of RPDs and suggests possible solutions.