Do Reputable Underwriters Affect the Sustainability of Newly Listed Firms? Evidence from South Korea

Na-Youn, Kim，

doi:10.3390/su11092665

Cited by 6 publications

(4 citation statements)

References 41 publications

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“…Later, the survival analysis model or the Cox proportional hazards model was introduced to investigate the survivability of the business. Kim (2019) mentioned that this model provides a more sophisticated analysis compared to the conventional statistical models. Although the machine learning models and business intelligence algorithms were also proposed as competing powerful techniques to predict the failure and have been proven to be superior to the logit and probit models (Tam & Kiang, 1992), these techniques neglect the effect of predictors on the duration of time until the event of business failure occurs.…”

Section: Modelling the Survivabilitymentioning

confidence: 99%

Survival Analysis of Thai Micro and Small Enterprises During the Covid-19 Pandemic

Leurcharusmee

Maneejuk

Yamaka

et al. 2022

Journal of Business Economics and Management

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Micro and small enterprises (MSEs) are important to the local economy and are the most crucial source of employment in Thailand. Using the three-round survey data, we assess the impact of COVID-19 on the survival probability of MSEs in the tourism and manufacturing sectors. Enterprise characteristics such as owner characteristics, employment and business strategies are examined as potential factors to mitigate or stimulate business failures. The Cox proportional hazards model and Kaplan–Meier estimator are employed. Our findings reveal that the survival probability paths from the three rounds of survey show a gradual decrease of survival probability from the first week of interview and approximately 50% of MSEs could not survive longer than 52 weeks during the COVID-19 pandemic. We also find that the survival of MSEs mainly depends on location, number of employees, and business model adjustment, namely operation with social distancing and online marketing. Particularly, retaining employees and not reducing the working hours are one of the key factors increasing the survivability of MSEs. However, the longer length of the crisis reduces the contribution of these key factors. The longer the period of the COVID-19 pandemic, the lower the chance of MSEs survivability.

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Section: Modelling the Survivabilitymentioning

confidence: 99%

Survival Analysis of Thai Micro and Small Enterprises During the Covid-19 Pandemic

Leurcharusmee

Maneejuk

Yamaka

et al. 2022

Journal of Business Economics and Management

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“…However, information asymmetry between the IPO and acquirer can hinder transactions. Investors often hesitate to make investments because of insufficient information if they want to invest in newly listed firms [21]. The IPO firm generally uses a signal to reduce information asymmetry between firms and potential investors [8].…”

Section: Signaling By Newly Listed Firmsmentioning

confidence: 99%

Choice between Acquisition and Joint Venture Based on Financial Statement Comparability

Kim

Han

2021

Sustainability

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This study examined the relationship between target firms’ financial statement comparability and bidder firms’ boundary decisions. The study used initial public offering (IPO) firms as target firms to test the impact of asymmetric information and signaling on investing bidder firms’ boundary decisions, such as joint ventures or acquisitions. In the IPO market, as an experimental setting, bidder firms are unfamiliar with issuing firms because they have little information about them prior to the IPO. This study argues that IPO firms with higher accounting comparability show lower information asymmetry. Consistent with this argument, we found that IPO firms’ accounting comparability has a positive probability of becoming a target for either a joint venture or acquisition, or an acquisition instead of a joint venture. This study contributes to the literature, financial statement comparability, and joint venture and acquisition decisions to measure the degree to which information asymmetry affects corporate investment strategy using a unique experimental setting of IPO firms.

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“…A new organizational form in the IPO syndicate-MLU (multiple lead underwriter) IPOs-and new competition between lead underwriters after underwriter selection have appeared, which is not present in SLU (single lead underwriter) IPOs [65]. It is plausible that this new structure with heightened deal complexity and increased competition will affect the lead underwriter affiliated analyst behavior in MLU IPOs through pressure and incentives.…”

Section: Summary Contribution and Future Researchmentioning

confidence: 99%

Sustainability of Analyst Recommendations in Multiple Lead Underwriter IPOs

2020

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Recently, a new organizational form of syndicate—multiple lead underwriter (MLU) initial public offerings (IPOs)—has emerged in IPOs. In addition to the increased deal complexity, lead underwriters in MLU IPOs face a new competition between them after underwriter selection, which is not present in single lead underwriter (SLU) IPOs. It is therefore questionable whether recommendations by analysts from lead underwriters of the MLU IPOs are as sustainable as those of the SLU IPOs. We examine IPO recommendations to capture how this new syndicate structure affects analyst behavior in terms of analyst optimism and investment value. In contrast to the popular conflict of interest perspective, our findings point to the notion that the new syndicate structure suppresses bias in recommendations and that reputation upholding incentive dominates pressure from competition. MLU-affiliated analysts are not more optimistic and provide more informative research coverage whose informativeness, however, fades away shortly after the recommendation releases. Our findings overall indicate the existence of sustainability in the MLU IPO recommendations.

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Do Reputable Underwriters Affect the Sustainability of Newly Listed Firms? Evidence from South Korea

Cited by 6 publications

References 41 publications

Survival Analysis of Thai Micro and Small Enterprises During the Covid-19 Pandemic

Survival Analysis of Thai Micro and Small Enterprises During the Covid-19 Pandemic

Choice between Acquisition and Joint Venture Based on Financial Statement Comparability

Sustainability of Analyst Recommendations in Multiple Lead Underwriter IPOs

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