How do developments at lending institutions that alter the way they grant and monitor loans influence their borrowers’ financial reporting quality (FRQ)? We examine this question by investigating the influence of Chinese state bank (CSB) privatization on the quality of their borrowers’ financial statements. Using a difference-in-difference research design which compares changes in CSBs that iss...

We develop a methodology which replicates in great accuracy the FTSE Russell indexes reconstitutions, including quarterly rebalancings due to new initial public offerings (IPOs). While using only data available CRSP US Stock database for our index reconstruction, we demonstrate of this by comparing it original time period between 1989 and 2019. A python package that generates replicated is also...

This study examines the valuation effects of initial public offerings (IPOs) and intra-industry IPOs in Turkey between 2010 2018. The purpose this is to find out whether are overvalued they impact pricing industry peers. First, investigated. Price-to-value ratios Turkish compared with sector average determine overvalued. not against rivals’ price-to-value based on sales earnings-before-interest...

W find that initial public offerings (IPOs) with high expected skewness experience significantly greater first-day returns. The skewness effect is stronger during periods of high investor sentiment and is related to differences in skewness across industries as well as to time-series variation in the level of skewness in the market. IPOs with high expected skewness earn more negative abnormal re...

This study examines the relation between ownership concentration and performance of initial public offerings (IPOs) in Thailand during 1989-1993. Ownership concentration plays a crucial role in emerging capital markets such as Thailand and can significantly affect IPO performance. Several testable hypotheses are constructed from the IPO literature to examine short-term and long-term IPO perform...

We study the underpricing of Chinese IPOs, using data of 308 flrm-commitment new issues. We flnd that underpricing can be explained in terms of a separating equilibrium under asymmetric information in which underpricing is a strategy for flrms to signal their value to investors. We show that bribery is an unlikely cause of the high IPO underpricing observed in the Chinese data. We also investig...

This study examines the role of pre-IPO discretionary accruals in the valuation and underpricing of IPOs. We find that IPO offer price is unaffected whereas market closing price is positively associated with the levels of pre-IPO discretionary accruals for issuers with aggressively reported earnings. We also find that this relative over-valuation of managed earnings by the markets explains a po...

We study 6,686 IPOs spanning the period 1981-2005 and find that the new issues puzzle disappears in a Fama-French three-factor framework. IPOs do not underperform in the aftermarket on a risk-adjusted basis and do not underperform a matched sample of non-issuers. IPO underperformance is concentrated in the 1980’s and early 1990’s, and IPO’s either perform the same as the market, or outperform o...