The Financial Characteristics and Price Movement Patterns of Companies Approaching the Unseasoned Securities Market in the Late 1970s

Block, Stanley B.; Stanley, Marjorie T.

doi:10.2307/3664916

Cited by 47 publications

(19 citation statements)

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“…An alternative approach is to use Ibbotson's return across time and securities (RATS) model (1975, p. 241) to adjust for risk, but this method is also not used in the study. Several studies, in-' cluding Ibbotson (1975), Ibbotson and Jaffe (1975), Jacquillat, McDonald andRolfo (1978), Finn (1983), and Block and Stanley (1980) found that risk adjustment using RATS did not have much effect on the results. Instead ofusing the market model or Ibbotson's RATS, risk is roughly adjusted for in this study by the transformation of stock returns to excess returns in equation (1) as is done in a number of IPO studies.…”

Section: Datamentioning

confidence: 99%

Secondary Stock Market Performance of Initial Public Offers, Hong Kong, Singapore and Malaysia: 1978–1984

Dawson

1987

Business Fin & Account

127

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Section: Datamentioning

confidence: 99%

Secondary Stock Market Performance of Initial Public Offers, Hong Kong, Singapore and Malaysia: 1978–1984

Dawson

1987

Business Fin & Account

127

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“…A growing body of empirical evidence has established that the initial public offerings (IPOs) of common stock are systematically underpriced, and the general consensus is that it is by at least 10 percent (Affleck-Graves and Miller 1989). Most of the earlier studies firmly established the existence of shortrun underpricing of IPOs in the U.S. capital markets (Aggarwal and Rivoli 1990;Ibbotson, Sindelar, and Ritter 1988;Brandi 1987;Chalk and Peavy 1987;Miller and Reilly 1987;Beatty and Ritter 1986;Ritter 1984;Nueberger and La Chapelle 1983;Block and Stanley 1980;Reilly 1977;Ibbotson 1975;Ibbotson and Jaffe 1975;Nueberger and Hammond 1974;Logue 1973;McDonald and Fisher 1972;Reilly and Hatfield 1969;and others). Furthermore, within the United States itself, the existence of short-run underpricing of IPOs has also been found to have an impact on the segment of the market in which the IPOs subsequently trade, namely, the New York Stock Exchange (NYSE) or the American Stock and Options Exchange (AMEX) or the over-the-counter securities market (OTC) (Prasad 1995a;Affleck-Graves et al 1993) as well as on the type of the offering (Prasad 1995b;Prasad 1994).…”

Section: Introductionmentioning

confidence: 96%

Government Public Policy, Regulatory Intervention, and Their Impact on IPO Underpricing: The Case of Malaysian IPOs

Prasad

Vozikis

Ariff

2006

J Small Business Management

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This study examines the impact of government initial public offering (IPO) regulation intending on promoting public policy. The study examines the results of the implementation of a Malaysian government policy in 1976, which mandated that at least 30 percent of any new shares on an IPO offer be sold to the indigenous Bumiputera population or to mutual funds owned by them. The study examined the short-run and long-run underpricing of Malaysian IPOs and found that Malaysian IPOs are highly underpriced compared to IPOs in developing countries, creating a market microstructure effect. It also confirmed that the Malaysian government's regulatory intervention in spite of noble public policy intentions appeared to be the significant factor for the emergence of an average firstday underpricing increase of Malaysian IPOs by 61 percent during the period after the regulatory economic policy was instituted. Furthermore, the study found that this high underpricing persists even for the long run, in contrast to the long-run performance of IPOs in the United States.Dr. Prasad is associate professor of finance at the University of Massachusetts-Lowell, where he teaches investments, portfolio analysis and security management, corporate finance, business finance, and short-term financial management. He has published several articles relating to the financing of start-up ventures such as IPO underpricing, signaling to business angels and venture capitalists, harvesting through IPOs, strategy and IPO market selection, capital structure issues, and valuation. In addition, he has several years' industrial experience in business plans and start-up financing, capital budgeting, project management, production and operations management, financial planning and insurance.

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“…The sample consists of: Block-Hirt (2000), Brealey-Myers (2000), Brigham (1995), Brigham-Gapenski (1999), Brigham-Gapenski (1996), Brigham-Houston (1998), Chambers-Lacey (1999), Cooley (1994), Dickerson-Campsey-Brigham (1995), Emery-Finnerty (1997), Gitman (1995), Gitman (1997), Hickman-Hunter-Byrd (1996), Kaen (1995), Keown-Scott-Martin-Petty (1999), Kolb-Rodriguez (1994), Kolb-Rodriguez (1996), Kolb-Rodriguez (1995), Levy-Sarnat (1994), Marsh (1995), Moyer-McGuigan-Kretlow (1998), Peterson (1994), Pinches (1996), Rao (1995), Ross-Westerfield-Jaffe (1999), Ross-Westerfield-Jordan) (1999), Ross-Westerfield-Jordan (1995), , Van Horne-Wachowicz (1998), Weston-Besley-Brigham (1996), and Weston-Copeland(1992).…”

Section: Introductionmentioning

confidence: 99%

Interpretations of the CAPM, Diversification, and Beta: Clarifications

Ardalan

2000

Humanomics

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractIt is now common for finance textbooks to discuss the concepts of the CAPM, diversification benefit, and systematic risk, as measured by beta. The purpose of this paper is to clarify aspects of these concepts and make the textbooks readers aware of them. In particular, this paper seeks to: (1) clarify the notion that "diversification reduces risk," (2) provide geometric expositions and algebraic expressions of portfolio benefits in the context of both total risk and market risk, and (3) improve the interpretation of beta.

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The Financial Characteristics and Price Movement Patterns of Companies Approaching the Unseasoned Securities Market in the Late 1970s

Cited by 47 publications

References 0 publications

Secondary Stock Market Performance of Initial Public Offers, Hong Kong, Singapore and Malaysia: 1978–1984

Secondary Stock Market Performance of Initial Public Offers, Hong Kong, Singapore and Malaysia: 1978–1984

Government Public Policy, Regulatory Intervention, and Their Impact on IPO Underpricing: The Case of Malaysian IPOs

Interpretations of the CAPM, Diversification, and Beta: Clarifications

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