Narrow Results

Effective information disclosure is the cornerstone of sustainable operation of the capital market. In the IPO market, whether public information in the prospectus can be fully captured by investors largely depends on the quality of valuation-relevant information. Based on Chinese prospectuses, we create five unique indicators to measure the information quality and examine the relationship between information quality and IPO underpricing. We find that high quality of information disclosure results in less underpricing because they relieve serious information asymmetry between issuing companies and investors. We provide a new method to supervise and improve the quality of non-financial information disclosure.

Recently, the interests in the performance of family firms in the capital market are on the rise. However studies on long-term performance give us little information about the performance of family firms in the initial public offering (IPO) markets. Building on agency theory, we investigated the effect of three IPO signals in family firm IPOs. Practices such as the appointment of outside non-family directors and waiting longer before going public significantly reduce underpricing. In addition, family owners' intent to retain large percentage of share in the long run is an indication of original shareholders' level of confidence in their own companies. Such confidence helps reduce after market investors' uncertainty and thus underpricing. On the other hand, family ownership at the IPO positively moderates the impact of non-family directors on underpricing.

This paper examines the performance of Silicon Valley ventures with Asian-American founding teams. We review some challenges faced by these ventures, compare their performance with that of other ventures, and analyze the impact of strategic partnerships on their performance. Our results indicate that firms founded by Asian American entrepreneurs tend to require more time to reach initial public offering (IPO) status than do other ventures in Silicon Valley. Our results further show that, despite needing this extra time, Asian American-founded ventures significantly outperformed their counterparts in 12-month post-IPO share price gain. This superior short-term post-IPO performance suggests that Asian American firms, particularly those that lacked relationships with U.S.-based strategic investors, might have been undervalued prior to and at IPO.

The article states a list of venture capitalists in Shanghai.

Prima Expands Its IP Portfolio.

Sinopharma Industry Co. Established.

Sino-Swed Reports Growth in Exports.

Shanghai Pharmaceutical Develops Painkiller Effective for Four Months.

QiLu Antibioticos Achieves Record Sales and Exports.

Dawnrays Pharmaceutical Raises US$150 Million from IPO.

Ono Starts Phase I Clinical Studies for New HIV Drug.

Singapore’s National Cancer Center and Genedata Announce Collaboration on Cancer Diagnostics.

Eiffel's New SCF Facility in Operation.

Non Bactericidal Antibiotics.

C-Pulse Heart Device Testing Progressing.

Mesoblast Boosted by Successful Closing of IPO.

China's Changing IPR Landscape.

Investment Hotspot: China's OTC Market.

Matrix Laboratories Close to Inking Landmark Contract Manufacturing Deal.

Sosei US Subsidiary Focuses on CNS Therapy Development.

Novartis Contemplates Setting up Research Base in India.

Latest Pharma Merger: Dainippon and Sumitomo.

Eisai Targets on Anti-Hepatitis Drug Market in China.

Zimmer Targets at Asian Aging Population.

ES Cell Receives Million Dollar Grant.

Combing to be Regional Vaccine Manufacturing Center.

No abstract reveived.

Nandan Biomatrix Plans for IPO.

Takeda Phamaceutical Boosts Presence in US Drug Discovery Market.

Acupuncture in a Pill.

Biosensors Expands Its Presence in Asia-Pacific.

Miltenyi Biotec Establishes Asia Pacific Headquarters in Singapore.

Australian Drug Discovery Company, Incitive Ltd, Announces Initial Public Offer.

Biosignal Collaborates with Ciba Specialty Chemicals.

Brisbane's Tissue Therapy Partners Canada's QSV Biologics.

Cellestis Signs Agreements on TB and Cytomegalovirus with FIND.

Mesoblast Obtained an Exclusive Worldwide License to Commercialize New Drug-eluting Stent Technology.

Narhex Life Sciences Ltd: An Emerging Australian Biotechnology Company.

Norwood Immunology Collaborates with Australian Stem Cell Center and Monash University.

Premier Bionics' Subsidiary Medic Vision Team up with the University of Melbourne and the CSIRO.

PharmaEng signs LOI to Purchase Beijing Lixin PharmaTech.

Japan's Bioventures Today—Noas Medical Co Ltd.

Incitive to Prepare for IPO.

Scigen Acquires Manufacturing Facility from Shreya Biotech.

Taiwan's New Discovery on Cancer.

Japan's Kissei Licenses Glufast to Elixir.

Generic Pharma Giant Teva Increases Stake in Chinese Biotech Firm.

Living Cell Technologies Awarded NZ$2.7 Million Investment through the Foundation for Research, Science and Technology.

Bionomics Wins A$3.7 Million AusIndustry Grant.

Singapore to Invest $7.5 Billion over Five Years on Research and Development.

Queensland Projects Win A$1.6 million Funding.

BAYER HealthCare and Economic Development Board to foster translational and clinical research for diseases prevalent in Asia

Ludwig Cancer Research and University of Oxford launch Cancer Immunotherapy Spinout

OmniComm Systems® Announces Reseller Agreement with Tri-I Biotech Shanghai Inc. Market Leading Life Sciences Consultancy to Resell OmniComm’s TrialOne® eSource Solution

Resverlogix Closes License Agreement and Enters Into Definitive Stock Purchase Agreement with Hepalink

Immunovaccine and PharmAthene Sign Exclusive Worldwide License Agreement to Develop and Commercialize an Anthrax Vaccine Formulated in DepoVax™

Commonwealth Financing Authority Announces New Alternative, Clean Energy Investment

ContraFect Corporation Announces Issuance of Key Patent Covering Novel Lysin Technology

M Pharmaceutical Inc. Rebrands Itself to Better Reflect Growing Family of Biomedical Technologies

Sustainable Apparel Coalition Recognizes SCS Global Services as Approved Verifier for New Pilot Program

StemCell United Announces Plans for PO and Listing on ASX

Roche Diagnostics Strengthens Footprint in Asia Pacific

Most Korean IPOs show significant initial underpricing which accounts for high initial returns. Our study explores the institutional and regulatory factors that have affected both the offering and after-market pricing mechanisms to test several hypotheses that might explain this underpricing in the Korean IPO market. We find a systematic difference in the initial stock price performance of new issues in an environment where firms have different motives for going public. We also find that in less regulated periods, the explanatory power of the variables relating to both the signaling and ex ante uncertainty hypotheses increase.

Korean and US IPO markets show significant initial underpricing, accounting for dramatic initial price increases. However, unlike its US counterpart, the Korean IPO market shows considerable market adjusted long-run returns. Hypotheses influenced by Korean institutional and regulatory factors, tested to explain the IPO cumulative returns, suggest that some of the theoretical arguments and empirical regularities observed in the US IPO market also apply to the Korean IPO market. However, this is a function of the regulatory environment in the four periods investigated in this study.

The main purpose of this paper is to study the empirical determinants of the underpricing of H-share initial public offerings (IPOs) during the 1993–2003 period. A special characteristic of H-shares is that they are shares of companies incorporated in China, but are also listed abroad. Our estimates indicate that the average IPO underpricing level of H-shares was about 16.8%. We find that the conventional explanations for the worldwide IPO underpricing are not adequate in explaining the underpricing level of H-shares. Some new factors that are important in explaining the underpricing phenomenon in H-shares are identified. We show that the degree of IPO underpricing is positively associated with market conditions prior to issuance. It is also negatively related to the range of the issuing prices as well as to the growth rate of historical profits. In addition, it is found that firms cross-listed in Hong Kong and America have higher underpricing levels.

Most Initial Public Offerings (IPOs) feature share lockup agreements, which prohibit insiders and other pre-IPO shareholders from selling their shares for a specified period of time following IPO. We explore possible reasons why some IPO firms voluntarily agree to have a much longer lockup period than other firms. We find evidence that lockup agreements are used to control agency costs. Longer lockups are significantly related to inferior long-run returns and this relationship is stronger for firms that have less reputable underwriters. We find no evidence that lockup agreements are used to signal firm quality and we are unable to relate firm quality, as measured by long-run returns, to information asymmetry variables.

In this paper, we examine how analysts react to IPO percentage offering size. We find that analysts predict lower long-term earnings growth rates for IPOs with larger percentage offering size. The sizes of both primary and secondary offering are negatively related to long-term growth rate forecasts. We find evidence that the free cash flow effect may be related to the negative relation between primary offering size and growth forecast.

The aim of this study is to investigate whether the adoption of convergent-International Financial Reporting Standards (IFRS) in China affects the audit fees of initial public offerings (IPO) firms. An empirical regression analysis using panel data for 1,094 nonfinancial IPOs (excluding season equity offers) of A-shares listed on the Shanghai and Shenzhen Stock Exchanges between 2003 and 2012 is adopted. The results reveal that audit fees increase following convergent-IFRS adoption in China and additionally suggest that convergent-IFRS adoption eases the intense price competition that previously existed in China’s audit market and thus has important policy implications for regulators. To the best of the authors’ knowledge, this study represents the first reported attempt to adopt the IPO setting to examine the effects of convergent-IFRS adoption on audit fees and fills the gap in literature. Using a setting of IPOs enables this paper to further exclude the influence of quasi-rents derived from low-balling after initial audit engagement when testing audit fees.

We examine the effects of venture capitalist involvement and equity incentives for all employees on the performance of initial public offering firms. Data was collected from 402 IPO firms, representing 242 non-VC backed and 160 VC backed firms. Results indicate venture capitalists positively influence the likelihood the portfolio firm will offer equity incentives to all employees. Consistent with the agency theory argument that monitoring and incentives can behave as complements to one another, the results suggest venture capitalist backing and incentive stock options for all employees operate in concert to have a positive effect on stock price performance three years after the initial public offering.

This chapter analyzes stock return behavior following initial public offering (IPO) events in the pharmaceutical sector and examines factors that could have an impact on this behavior.

The results of the research indicate a positive Cumulative Average Abnormal Return (CAAR) of 3.03% in the 20 days following the IPO until the end of the quiet period for all firms under examination, and a decline of tens of percent in the 18 months post-IPO. When the sample is divided into two subsamples according to firm size, a market value (MV) of US$500 million can be identified as a threshold for positive or negative post-IPO yields. Companies with an MV below this threshold experience a positive but not significant CAAR in the first 20 days post-IPO and a significant negative CAAR from day 31 onwards. In contrast, companies above this US$500 million threshold show a significant positive CAAR 20 days post-IPO, followed by a consistent increase in CAAR for the next few months. The results also indicate that MV, IPO proceeds, shareholder dilution and clinical phases are critical factors determining post-IPO returns. In conclusion, we suggest that investors recognize a US$500 million market value of a firm as a confidence threshold when investing in newly issued pharmaceutical companies. We postulate that firms valued above this amount attract more attention and gain greater investor confidence than do firms below this threshold. Lower-valued firms shares can be considered “lottery stocks,” as their IPO ignites a period of enthusiasm until the quiet period ends, where after investors’ attention to such firms gradually diminishes, and their focus moves on to their next potential lottery-like opportunity.

Earlier studies document positive first-day return for initial public offerings (IPOs), commonly interpreted as underpricing of the issue. The empirical evidence also indicates that IPO underpricing is negatively related to the public float (the fraction of the firm sold to the public). One possible explanation for this relation is that firms allocate a fixed amount of money for underpricing, and set an issue price accordingly — a behavioral characteristic. But, if indeed firms allocate a fixed amount of money to underpricing, then this underpricing should diminish in the public float. Using a sample of IPOs between 1996 and 2008, we provide empirical evidence that indeed the relation between underpricing and the public float is non-linear. Specifically, the higher the public float, the less the decrease of underpricing in the public float. Moreover, in our regression analysis, regressing underpricing on the reciprocal of the public float provides the best fit. As we show, this result is consistent with firms allocating a fixed amount of money for underpricing. This finding is important because it helps predict underpricing and has implications for firms, investors and regulators.