Impact of legal institutions on IPO survival: A global perspective

Espenlaub, Susanne; Goyal, Abhinav; Mohamed, Abdulkadir

doi:10.1016/j.jfs.2016.06.003

Cited by 34 publications

(48 citation statements)

References 59 publications

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“…It can be observed from the table that the survival rate of Malaysian IPO drops to 98% after three years and 92.3% after five years following the first trading day. These findings are comparable to the recent findings in the study conducted by Espenlaub et al (2016), who examined the survival rate of the IPOs listed during 2000-2008 in four different regions including North America, Europe, BRICS, and the Asia-pacific. In comparison, the five years post-IPO survival rates (92.3%) found in this study is noticeably higher than those found in North America (73.11%), Europe (61.03%), and BRICS (81.61%), but slightly lower than Asia-pacific (93.17%).…”

Section: Kaplan-meier Survival Ratessupporting

confidence: 90%

“…These include the transfer to another market, failure to maintain the listing requirements, unsatisfactory financial conditions as well as merger and acquisition. However, an IPO that is delisted due to transfer to another market is excluded from the definition of failure which is consistent with Espenlaub et al (2016) who defined survival as companies that continue to trade on the stock market or transfer to another stock market. Thus, only four reasons are considered in this analysis.…”

Section: Obs Ace Market -Cumulative Survival Rates (%)mentioning

confidence: 78%

“…Focusing on Canada's IPOs listed between 1986 and 2003, Carpentier and Suret (2011) revealed that 20% of the companies were delisted after five years, which was lower than the failure rate reported in the US Market. Espenlaub et al (2016) investigated the survival rate of IPO from 32 countries (categorised into four regions: North America, Europe, BRICS, and Asia-Pacific). They found that the survival rate of the IPOs varied across countries.…”

Section: Literature Reviewmentioning

confidence: 99%

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Survival of the Malaysian initial public offerings

Shari¹

2019

10.5267/j.msl

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This study addresses the extent to which Malaysian public listed firms survive after the IPO. The result reports that 7.72% of Malaysian IPOs were delisted from the market after five years, which is lower than the delisting rate reported in previous studies in developed markets. The delisting rate increased to 13.2% after seven years of listing. Further investigation shows that an unsatisfactory financial condition is the primary factor of failure. Comparison of the survival rate between the Main Market and the ACE market reveals that the cumulative survival rates over one through seven years after the IPO are consistently higher for the Main Market IPOs than the ACE Market IPOs, suggesting that the ACE Market IPOs have a higher probability to be delisted from the Market compared with the Main Market IPOs.

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Section: Kaplan-meier Survival Ratessupporting

confidence: 90%

Section: Obs Ace Market -Cumulative Survival Rates (%)mentioning

confidence: 78%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Survival of the Malaysian initial public offerings

Shari¹

2019

10.5267/j.msl

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“…Sudah ada banyak penelitian serupa yang dilakukan di berbagai negara diantaranya adalah di Afrika Selatan oleh Neneh & Smit (2014), di Taiwan oleh Woody et al (2013) dan , di Italia oleh Cirillo et al (2017), di Inggris oleh Espenlaub et al (2015), dan bahkan dengan cakupan global di 32 negara oleh Espenlaub et al (2016). Perlu dilakukan penelitian di Indonesia guna membuktikan terjadinya konsep tersebut pada kondisi pasar saham yang berbeda-beda.…”

Section: Latar Belakangunclassified

“…c. Profitabilitas signifikan positif mempengaruhi post-IPO survival. Hasil ini sejalan dengan penelitian Espenlaub et al (2016) yang menyatakan profitabilitas berpengaruh signifikan terhadap IPO survival. Demikian juga dengan penelitian Neneh and Smit (2014) yang menyatakan bahwa profitability ratio berpengaruh signifikan terhadap IPO survival.…”

Section: Pembahasanunclassified

Pengaruh Kepemilikan Institusi, Kualitas Audit, Profitabilitas, Dan Leverage Terhadap Post-IPO Survival

Ciuyono

2018

JMIEB

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Abstrak: Para investor, praktisi, regulator dan pembuat kebijakan di Indonesia mencoba mencari tahu faktor-faktor apa saja yang membuat perusahaan dapat survive di pasar modal. Penelitian ini mengkaji apakah kepemilikan institusi, kualitas audit, profitabilitas, dan leverage berpengaruh signifikan positif terhadap post-IPO survival. Metode statistik yang digunakan dalam penelitian ini adalah regresi linier berganda dengan subyek penelitian adalah perusahaan publik sektor barang konsumsi di Indonesia tahun 2010-2016. Hasil penelitian menunjukkan bahwa kepemilikan institusi dan profitabilitas memiliki pengaruh yang signifikan positif terhadap post-IPO survival sementara itu kualitas audit dan leverage tidak memiliki pengaruh yang signifikan terhadap post-IPO survival. Kata-kata kunci: Post-IPO Survival, Kepemilikan Institusi, Kualitas Audit, Profitabilitas, Leverage.

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Does an Asset Owner’s Institutional Setting Influence Its Decision to Sign the Principles for Responsible Investment?

Hoepner

Majoch²,

Zhou

2019

J Bus Ethics

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From a simple idea to unite asset owners in their quest for responsible investment (RI) at its launch in April 2006, the United Nations supported Principles for Responsible Investment (PRI) have grown in just one decade into an initiative with more than 1500 fee-paying signatories. Jointly, the PRI's signatories hold assets worth more than $80 trillion, making it one of the more prevalent not-for-profit organizations worldwide. Furthermore, the PRI's ambitious mission to transform the financial system at large into a more sustainable one makes it a worthwhile subject of inquiry from an institutional perspective. We undertake an empirical investigation of the adoption of the PRI by asset owners during five crucial years of the association's emergence: 2007-2011. Following a tripartite view of institutional theory proposed by Scott (Institutions and organizations. Foundations for organizational science, A Sage Publication Series, London, 1995), we explore if regulative, normative, and cultural-cognitive factors influence an asset owner's decision to subscribe to the PRI. Applying both parametric and nonparametric survival analysis, we find that asset owners are indeed significantly affected by normative, cultural-cognitive, and regulative aspects. In particular, (i) public service employee and labor union pension funds (ii) from social backgrounds more culturally aligned with values represented by the RI movement (iii) with historically more voluntary legislation on environmental, social, and governance (ESG) issues are most likely to sign the PRI. In contrast, institutional environments with a higher number of pre-existing mandatory ESG regulation decrease the likelihood of signing the PRI. Our results indicate that normative and cultural-cognitive factors were crucial contributors to the PRI's growth. With respect to the regulative environments, our results imply that some asset owners may use the PRI as a collective industry initiative to substitute for mandatory legislation. Conversely, a high level of historical mandatory legislation may constrain organizational resources that could otherwise be dedicated to voluntary initiatives such as PRI. Our findings are robust to relevant controls and econometric concerns.

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Impact of legal institutions on IPO survival: A global perspective

Cited by 34 publications

References 59 publications

Survival of the Malaysian initial public offerings

Survival of the Malaysian initial public offerings

Pengaruh Kepemilikan Institusi, Kualitas Audit, Profitabilitas, Dan Leverage Terhadap Post-IPO Survival

Does an Asset Owner’s Institutional Setting Influence Its Decision to Sign the Principles for Responsible Investment?

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