title: Examination of IPO mispricing in four markets

authors: Ajmal, Hamza

subjects: IPOs

abstract: The apparent anomaly that initial public offerings (IPOs) are mispriced across time and markets has been a focus of academic research for over four decades. Previous studies on the subject have focused on the underpricing of IPOs. Using a sample of 6171 IPOs that were issued from 1995 to 2013 in four markets – the United States (US - 2458 IPOs), Australia (1095 IPOs), China (2199 IPOs) and Malaysia (419 IPOs) – we also find that IPOs are on average underpriced but that a concentration on the average overstates the extent of this underpricing with a significant proportion of IPOs actually being overpriced. In the US, the mean mispricing is 34.90%, and the median is 2.40%, with 35.50% of IPOs being overpriced. In Australia, the mean mispricing is 25.51%, the median is 10%, and 37.70% of IPOs are overpriced. In China, the mean mispricing is 112.10%, the median is 71.40%, and 6.30% of IPOs are overpriced. In Malaysia, the mean mispricing is 1.80%, the median is -17.53%, and 59.42% of the sample IPOs are overpriced.

A wide dispersion in mispricing exists across the four markets. The IPOs range from highly overpriced to extremely underpriced IPOs. We assemble a large number of firm-level and country-level variables to explain the mispricing, and we show how their impacts vary across the range of mispricing and across the four markets. The firm-level factors examined include company characteristics, offer characteristics, issue certification, prospectus disclosure, market sentiment, and institutional characteristics. These factors are found to have a varying impacts across different levels of mispricing.

Country-level variables include institutional quality and economic strength. Our findings suggest that poor institutional quality adds to the uncertainty about the value of the firm and leads to more mispricing.

Our cross-country examination of mispricing is one of the first studies to examine the relationship between a country’s economic strength and IPO mispricing. We find that the largest mispricing occurs in developing countries experiencing high economic growth, and that larger economic size reduces mispricing. We further find that, while the country-level characteristics are differentiating factors across our sample markets, they have their greatest explanatory power for moderate levels of mispricing, and that extreme levels of mispricing are better explained by firm-level factors.

We use the traditional ordinary least squares (OLS) and the more appropriate quantile regression (QR) methods as our methods of examination. The OLS approach focuses on the average impact that the independent variables have on mispricing. In this approach, the latent characteristics of the mispricing distribution, given that it does not follow a normal distribution, remain unexamined. On the other hand, the QR approach allows us to examine the varying effects that the independent variables have at different levels of mispricing due to the asymmetric distribution of returns. The QR approach enables us to identify the impacts of each variable on IPOs at particular levels of mispricing. The QR approach is a robust method which is able to deal with potential heterogeneity in the distribution, as was the case with our sample. We are able to compare the results derived from the median QR with those derived from the traditional OLS to enrich the literature in terms of the analysis of a skewed distribution. The QR method also enables us to examine different segments of the distribution of mispricing, including the tail regions. By doing this we are able to compare the impacts of the explanatory factors on mispriced IPOs that range from extremely overpriced to extremely underpriced.

text: Examination of IPO mispricing in four markets The apparent anomaly that initial public offerings (IPOs) are mispriced across time and markets has been a focus of academic research for over four decades. Previous studies on the subject have focused on the underpricing of IPOs. Using a sample of 6171 IPOs that were issued from 1995 to 2013 in four markets – the United States (US - 2458 IPOs), Australia (1095 IPOs), China (2199 IPOs) and Malaysia (419 IPOs) – we also find that IPOs are on average underpriced but that a concentration on the average overstates the extent of this underpricing with a significant proportion of IPOs actually being overpriced. In the US, the mean mispricing is 34.90%, and the median is 2.40%, with 35.50% of IPOs being overpriced. In Australia, the mean mispricing is 25.51%, the median is 10%, and 37.70% of IPOs are overpriced. In China, the mean mispricing is 112.10%, the median is 71.40%, and 6.30% of IPOs are overpriced. In Malaysia, the mean mispricing is 1.80%, the median is -17.53%, and 59.42% of the sample IPOs are overpriced.

A wide dispersion in mispricing exists across the four markets. The IPOs range from highly overpriced to extremely underpriced IPOs. We assemble a large number of firm-level and country-level variables to explain the mispricing, and we show how their impacts vary across the range of mispricing and across the four markets. The firm-level factors examined include company characteristics, offer characteristics, issue certification, prospectus disclosure, market sentiment, and institutional characteristics. These factors are found to have a varying impacts across different levels of mispricing.

Country-level variables include institutional quality and economic strength. Our findings suggest that poor institutional quality adds to the uncertainty about the value of the firm and leads to more mispricing.

Our cross-country examination of mispricing is one of the first studies to examine the relationship between a country’s economic strength and IPO mispricing. We find that the largest mispricing occurs in developing countries experiencing high economic growth, and that larger economic size reduces mispricing. We further find that, while the country-level characteristics are differentiating factors across our sample markets, they have their greatest explanatory power for moderate levels of mispricing, and that extreme levels of mispricing are better explained by firm-level factors.

We use the traditional ordinary least squares (OLS) and the more appropriate quantile regression (QR) methods as our methods of examination. The OLS approach focuses on the average impact that the independent variables have on mispricing. In this approach, the latent characteristics of the mispricing distribution, given that it does not follow a normal distribution, remain unexamined. On the other hand, the QR approach allows us to examine the varying effects that the independent variables have at different levels of mispricing due to the asymmetric distribution of returns. The QR approach enables us to identify the impacts of each variable on IPOs at particular levels of mispricing. The QR approach is a robust method which is able to deal with potential heterogeneity in the distribution, as was the case with our sample. We are able to compare the results derived from the median QR with those derived from the traditional OLS to enrich the literature in terms of the analysis of a skewed distribution. The QR method also enables us to examine different segments of the distribution of mispricing, including the tail regions. By doing this we are able to compare the impacts of the explanatory factors on mispriced IPOs that range from extremely overpriced to extremely underpriced.

year: 2018

title: A Comparative Analysis of Equine Mesenchymal Stromal Cells and Dermal Fibroblasts

authors: Leander, Alexandra Anneli Kristina

abstract: The aim of this study was to isolate and characterise equine mesenchymal stromal cells from various sources and to compare their biological properties to that of dermal fibroblasts. By using multiple conventional methods a comparative analysis of the different populations could be made. The results showed that little distinguishes mesenchymal stromal cells from dermal fibroblasts, they have the same morphology and growth characteristics, the same cell surface markers as demonstrated with immunocytochemistry and flow cytometry and the capacity to undergo trilineage differentiation into adipo-, chondro- and osteogenic lineages essentially becoming fat, cartilage and bone. An allogenic synovial fluid model was shown to induce a chondrogenic phenotype in equine mesenchymal stromal cells as well as dermal fibroblasts. A bio-activation assay was performed to evaluate cytokine production of cell populations after activation with Tumour necrosis factor alpha or inflammatory synovial fluid. All of the analysed cell populations demonstrated up-regulation of production of the anti-inflammatory cytokines IL-10 and TGF-β1, after activation with inflammatory synovial fluid, although significant values could not be obtained for every source. As for Prostaglandin E2, results were obtained for bone marrow stromal cells and dermal fibroblasts populations only. Their effects were in opposite; dermal fibroblast reduced the production of Prostaglandin E2 post activation. A functional bio-activation assay has shown promise as a method to distinguish equine mesenchymal stromal cells from dermal fibroblast populations.

text: A Comparative Analysis of Equine Mesenchymal Stromal Cells and Dermal Fibroblasts The aim of this study was to isolate and characterise equine mesenchymal stromal cells from various sources and to compare their biological properties to that of dermal fibroblasts. By using multiple conventional methods a comparative analysis of the different populations could be made. The results showed that little distinguishes mesenchymal stromal cells from dermal fibroblasts, they have the same morphology and growth characteristics, the same cell surface markers as demonstrated with immunocytochemistry and flow cytometry and the capacity to undergo trilineage differentiation into adipo-, chondro- and osteogenic lineages essentially becoming fat, cartilage and bone. An allogenic synovial fluid model was shown to induce a chondrogenic phenotype in equine mesenchymal stromal cells as well as dermal fibroblasts. A bio-activation assay was performed to evaluate cytokine production of cell populations after activation with Tumour necrosis factor alpha or inflammatory synovial fluid. All of the analysed cell populations demonstrated up-regulation of production of the anti-inflammatory cytokines IL-10 and TGF-β1, after activation with inflammatory synovial fluid, although significant values could not be obtained for every source. As for Prostaglandin E2, results were obtained for bone marrow stromal cells and dermal fibroblasts populations only. Their effects were in opposite; dermal fibroblast reduced the production of Prostaglandin E2 post activation. A functional bio-activation assay has shown promise as a method to distinguish equine mesenchymal stromal cells from dermal fibroblast populations.

year: 2017

title: E Toru Ngā Reo: A Case Study of a Spanish Language Programme in a Kura Kaupapa Māori

authors: Flavell, William

subjects: Kaupapa Maori Research

abstract: Learning Languages is a new area in the 2007 New Zealand Curriculum.  However there have not been many studies in this subject.  Kura Kaupapa Māori, established in 1985 in New Zealand with over 6,000 students currently attending, have English language programmes (Hill, 2010), however few, if any, studies of the teaching of other languages have been conducted.  The purpose of this study was to describe and evaluate an additional international language programme at a Kura Kaupapa Māori.

This qualitative case study describes the views of the Principal, five teachers, five students and three parents of a Kura Kaupapa Māori about an additional Spanish language programme. The primary means of gathering data was through individual semi-structured interviews.  Interviews were used to collect data in the areas of identifying the attitudes of the participants towards learning an additional international language, the perceived benefits, if any, of learning an additional international language and if there is a relationship between the learning of an  additional international language, and Kaupapa Māori.  The narrative data was transcribed, coded and categorised into four themes related to the research questions.  

 The success of this Spanish language programme can be understood in terms of several factors such as whānau support, programme leadership, quality teachers, international excursions and positive attitudes to foreign language learning.  

These findings will contribute to literature concerning additional language learning programmes, specifically those based in indigenous language immersion settings and they will also provide useful information and ideas which other Kura Kaupapa Māori can take advantage of when implementing additional international language learning programmes.

text: E Toru Ngā Reo: A Case Study of a Spanish Language Programme in a Kura Kaupapa Māori Learning Languages is a new area in the 2007 New Zealand Curriculum.  However there have not been many studies in this subject.  Kura Kaupapa Māori, established in 1985 in New Zealand with over 6,000 students currently attending, have English language programmes (Hill, 2010), however few, if any, studies of the teaching of other languages have been conducted.  The purpose of this study was to describe and evaluate an additional international language programme at a Kura Kaupapa Māori.

This qualitative case study describes the views of the Principal, five teachers, five students and three parents of a Kura Kaupapa Māori about an additional Spanish language programme. The primary means of gathering data was through individual semi-structured interviews.  Interviews were used to collect data in the areas of identifying the attitudes of the participants towards learning an additional international language, the perceived benefits, if any, of learning an additional international language and if there is a relationship between the learning of an  additional international language, and Kaupapa Māori.  The narrative data was transcribed, coded and categorised into four themes related to the research questions.  

 The success of this Spanish language programme can be understood in terms of several factors such as whānau support, programme leadership, quality teachers, international excursions and positive attitudes to foreign language learning.  

These findings will contribute to literature concerning additional language learning programmes, specifically those based in indigenous language immersion settings and they will also provide useful information and ideas which other Kura Kaupapa Māori can take advantage of when implementing additional international language learning programmes.

year: 2012