Initial public offerings by mutual thrifts: The regulatory impact

Cox, Steven R.; Roden, Dianne M.

doi:10.1007/bf02745945

Cited by 6 publications

(10 citation statements)

References 19 publications

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“…In contrast to the results of Model 1, firm size and insider ownership are both insignificant. This is consistent with greater underpricing for converting thrifts where insiders acquire greater holdings as documented by Maksimovic and Unal (1993) and Cox and Roden (1999). 15 Based on the July 12, 2000 Federal Register, the OTS provided only lax enforcement of their dividend-policy regulation.…”

Section: 16supporting

confidence: 74%

“…The conversion of mutual thrifts to stock companies has led to controversy and concern over the potential transfer of wealth from depositor-owners to new shareholders (Masulis (1987), Kroszner and Strahan (1996), Unal (1997), Cagle and Porter (1997), and Cox and Roden (1999)). We demonstrate and test how dividend policy transfers wealth in a mutual holding company (MHC).…”

Section: Mutual Holding Companies: Evidence Of Conflicts Of Interest mentioning

confidence: 99%

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Mutual holding companies: Evidence of conflicts of interest through disparate dividends

Carow

Cox

Roden

2004

Journal of Banking & Finance

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Section: 16supporting

confidence: 74%

Section: Mutual Holding Companies: Evidence Of Conflicts Of Interest mentioning

confidence: 99%

Mutual holding companies: Evidence of conflicts of interest through disparate dividends

Carow

Cox

Roden

2004

Journal of Banking & Finance

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“…Dunham (1985) finds that insiders purchase 20% of all conversion shares. Cox and Roden (1999) find that inside participation averaged 10% during the period 1988–97.…”

Section: Demutualization Literature and Historymentioning

confidence: 87%

“…Barth, Brumbaugh, and Kleidon (1994) report average initial returns of 24% for 1992 and 29% for 1993. Cox and Roden (1999) find average 1‐day adjusted returns of 26.3% for the period 1993 to 1997.…”

Section: Demutualization Literature and Historymentioning

confidence: 95%

The Role of Insider Influence in Mutual‐to‐Stock Conversions

Carow

Cox

Roden

2007

J of Money Credit Banking

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Using a sample of 347 demutualizing thrifts from 1991 to 2004, we show that the level of inside participation is not a traditional signal of firm performance. We conclude that unanticipated inside participation reflects the incentives of insiders to reduce the size of the offer to influence the level of expected IPO returns. We find unanticipated inside participation is related to lower offer size and higher initial returns, but we do not find a relationship between inside participation and post-IPO performance.

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“…Cox and Roden (1999) provide evidence of deliberate under-pricing in mutual thrift IPOs through their analysis of abnormal returns. Generally, previous studies indicate that the returns from MSB IPOs are high, but not necessarily higher than those from IPOs of other thrifts and commercial banks.…”

Section: (Ii) Mutual Savings Banksmentioning

confidence: 99%

Capital Gains Taxation and Equity Returns: The Case of Mutual Savings Banks

Kelly¹,

Xin²,

Chambers³

2011

Business Fin & Account

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IPOs of demutualized savings banks create tax sensitive shareholders with identical acquisition dates and tax bases. We investigate security volume and returns surrounding the oneyear anniversary of the IPOs when unrealized capital gains and losses for original shareholders become long-term capital gains for taxation purposes. Trading volume levels confirmed our hypothesis that investors defer the recognition of capital gains, but we could not confirm that tax motivated trading affected security prices. The results have implications beyond taxation and US markets. For non-institutional investors, presumed to exhibit non-rationality, tax motivated trading exists and does not have a significant effect on prices.

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Initial public offerings by mutual thrifts: The regulatory impact

Cited by 6 publications

References 19 publications

Mutual holding companies: Evidence of conflicts of interest through disparate dividends

Mutual holding companies: Evidence of conflicts of interest through disparate dividends

The Role of Insider Influence in Mutual‐to‐Stock Conversions

Capital Gains Taxation and Equity Returns: The Case of Mutual Savings Banks

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