Опубликовано на портале: 16-06-2006Kee H. Chung, Mingsheng Li, Linda Yu Financial Management. 2005. Vol. 34. No. 3. P. 65-88.
We consider a simple model positing that initial public offering price is equal to the present value of an entity's assets in place and growth opportunities. The model predicts that initial return is positively related to both the size and risk of growth opportunities. Consistent with this prediction, we find initial return to be positively related to both the fraction of the offer price that is accounted for by the present value of growth opportunities and various proxies of issue uncertainty. We also find that IPO investors equate one dollar of growth opportunities to approximately three quarters of tangible assets.
Опубликовано на портале: 21-06-2006Franck Bancel, Usha R. Mittoo Financial Management. 2004. Vol. 33. No. 4. P. 103-132.
We survey managers in 16 European countries on the determinants of capital structure. Financial flexibility and earnings per share dilution are primary concerns of managers in issuing debt and common stock, respectively. Managers also value hedging considerations and use "windows of opportunity" when raising capital. We find that although a country's legal environment is an important determinant of debt policy, it plays a minimal role in common stock policy. We find that firms' financing policies are influenced by both their institutional environment and their international operations. Firms determine their optimal capital structures by trading off costs and benefits of financing.
Ex Ante Cost of Equity Estimates of S&P 500 Firms: The Choice Between Global and Domestic CAPM [статья]
Опубликовано на портале: 20-06-2006Robert S. Harris, Felicia C. Marston, Dev R. Mishra, Thomas J. O'Brien Financial Management. 2003. Vol. 32. No. 3.
We estimate ex ante expected returns for a sample of S&P 500 firms over the period 1983-98. The exante estimates show a better overall fit with the domestic version of the single-factor CAPM than with the global version, but the difference is small. This finding has no trend in time and is consistent across groups formed on the basis of relative foreign sales. The findings suggest that, for estimating the cost of equity, the choice between the domestic and global CAPMs may not be a material issue for many large U.S. firms.
Опубликовано на портале: 14-06-2006Robert Bruner, Susan Chaplinsky, Latha Ramchand Financial Management. 2004. Vol. 33. No. 3. P. 39-60.
We examine 245 international firms making initial public offerings (IPOs) in the United States between 1991 and 1999, and compare their underwriting fees and indirect costs of underpricing to the IPOs of domestic US issuers. Our results indicate that foreign IPOs experience approximately the same costs on average as domestic IPOs. The risk of foreign IPOs arising from asymmetric information and high country risk is offset by characteristics that reduce their risk relative to domestic US IPOs. Foreign US IPO issuers are larger firms with tangible assets that originate from countries sharing a common border and language with the United States. These issues occur following periods of strong home market equity performance and stable currency conditions, which help to alleviate country risk.