Volume 05 Number 01
The Short Term Price Performance Of Initial Public Offerings Of Common Stock: Australia 1991 - 1994
Colm Kearney and Mehdi Sadeghi
This paper provides new evidence on the short-term pricing of Australian IPOs using daily data on 188 IPOs from January 1991 to December 1994. In contrast to previous Australian studies, it clearly demarcates the primary from the secondary IPO market by the first transaction which takes place on the first day of listed trading. It finds significant primary market underpricing of the same magnitude in both the industrials and resources sectors which is considerably less then that reported by previous researchers. With zero returns during the first two days of listed trading, all abnormal returns accrue to initial subscribers.
Hourly Share Price Response To The Release Of Interim Financial Reports: Some UK Evidence
Kwaku K Opong
This paper examines hourly share price response to the release of interim financial reports in the United Kingdom. The paper also examines the interaction effect of the joint announcement of interim earnings and dividend information. The results of the study indicate that significant price response to the release of interim reports occur in the hour in which the report is released. The study also provides evidence that significant interaction effects exists on the announcement of earnings and dividend information on abnormal returns cumulated over the hour before the report is released up to the hour after the report is released.
Labour Vs Liberal: Do The Markets Care?
Martin Michael Tolar
Hibbs (1997 and 1987) and Minford and Peel (1982) argue that macro-economic outcomes are likely to differ significantly depending upon the ideological persuasion of the government of the day. Following from this contention, we investigate the proposition that if stock markets conform to the efficient market hypothesis, then such distinctions should be reflected in stock prices. This event study seeks to ascertain whether this proposition holds for the Australian experience during the period 1972 – 1996.
Keywords: All Ordinaries Index, Efficient Market Hypothesis, Financial Markets, Australian Politics.
An Analysis Of Non-Mandatory Financial Disclosures In Singapore
Pearl Tan, Eng Juan Ng and Hian Chye Koh
This study examines the association between non-mandatory disclosures (as per Statement of Recommended Accounting Practice 1) and the organisational characteristics of disclosing firms. Nine hypotheses derived from agency theory are tested using data from 97 listed companies in Singapore. Logit analysis results reveal that profitability, listing status, market share and firm size are significant in explaining non-mandatory disclosures. Besides providing evidence on disclosure behaviour in an East Asian context, the study also shows that regulation is not necessary to bring about desired information. Firms with large public interest will volunteer such information in the light of agency costs.
An International Comparison Of The Accuracy Of Financial Analysts' Earnings Forecasting: Korea Vs U.S.
Jee In Jang and Kyung Joo Lee
The purpose of this study is to investigate whether domestic financial analysts have an informational advantage relative to their foreign counterparts in earning forecasting. In particular, we examine the relative superiority of Korean analysts’ earnings forecasts over those by American analysts for the same Korean firms. Relative superiority is evaluated in terms of both the forecast accuracy and appropriateness as a proxy for market expectation. Empirical tests are performed using a sample of 140 Korean firms over a 4 year period (1988 – 1991) for which both the Daewoo Economic Research Institute (Korean analysts) and the Institutional Brokerage Estimate System (IBES: American analysts) provide EPS forecasts data.
A Survey Of Capital Budgeting Practice In Australia
Paul Gerrans and Mahendra Chandra
This paper presents the results of a survey of the application of capital budgeting techniques by a cross-section of 220 Australian companies. A comparison of technique usage with previous Australian studies is also provided. Caution is suggested when commenting on trends evident in technique usage given the range of potential influences which include company size, capital expenditure, age, legal status and company objective. Further, the respondent's assessment of each technique, the role of others involved in the investment decision making process, and the perceived levels of understanding of each technique are examined as possible explanatory variables of technique application.