...Contents lists available at ScienceDirect Journal of Banking & Finance journal homepage: www.elsevier.com/locate/jbf Underpricing of IPOs: Firm-, issue- and country-specific characteristics Peter-Jan Engelen a,*, Marc van Essen b a b Utrecht University, School of Economics, Utrecht, The Netherlands Erasmus University, Rotterdam School of Management, Rotterdam, The Netherlands a r t i c l e i n f o a b s t r a c t Using a large firm-level dataset of 2920 IPOs from 21 countries we examine the impact of country-level institutional characteristics on the underpricing of IPOs. Through hierarchical linear modeling we are able to control for firm-specific and issue-specific characteristics and test whether country-specific institutional characteristics add explanatory power to explain the level of underpricing. Our results show that about 10% of the variation in the level of underpricing is between countries. The quality of a country’s legal framework, as measured by its level of investor protection, the overall quality of its legal system and its level of legal enforcement, reduces the level of underpricing significantly. Ó 2010 Elsevier B.V. All rights reserved. Article history: Received 4 July 2009 Accepted 6 January 2010 Available online 11 January 2010 JEL classification: G30 G32 G38 K22 Keywords: IPO Underpricing Legal framework Investor protection Multi-level modeling 1. Introduction When companies go public, a well-documented phenomenon is the underpricing...
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...Ethical and Legal Issues Merger of Company A & Company B Human Resources Management & Talent Development 07-04-13 Abstract In any merger, there are always legal and ethical issues involved. These issues have to be resolved in order to ensure a successful merger. It is the role of Human Resource personnel to ensure the code of ethics is used in legal and moral implications. The role of the Human resource manager is to create an ethical environment in which all employees are able to enjoy there inalienable rights. These rights will include the accessibility of information about the job, company, and there career and the right not to be coerced into situations. Maintaining these rights will help in reducing stress, establishing trust, increasing productivity and efficiency. This report will document the legal and ethical issues associated with a merger. It will also consist of a detailed implementation plan in resolving these potential ethical and legal issues. A plan for establishing an ethical work environment and resolving ethical and legal issues will be discussed as well. Identify Specific Legal and Ethical Issues involved in Mergers Recently the mergers and acquisitions of firms has become a major trend in business. In the process of mergers and acquisitions, the role of ethics and compliance has become a major step in ensuring success. A breakout session was held just recently on ethics and compliance in mergers and acquisitions. The panel, which featured...
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...Assignment 2 Legal Issues Case Study Part II Click Link Below To Buy: http://hwcampus.com/shop/assignment-2-legal-issues-case-study-part-ii/ Assignment 2: Legal Issues Case Study Part II Read the scenario and the questions that follow. Identify the legal issue(s) and apply legal concepts and possible arguments for each question. Prepare a solution for each question using laws, cases, examples and/or other relevant materials. At the end of the paper, identify potential ethical issues and propose a solution for each issue. Support your answers with information from the textbook and at least two outside scholarly sources. By Tuesday, May 10, 2016, prepare a 7 to 9-page paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority. Properly cite all sources using APA format. This assignment requires application of the concepts learned in Weeks 1 – 5 and is worth significantly more than previous assignments. Marcus is a second year law student working as an intern for the largest law firm in Chicago, Illinois. The senior attorney introduced Marcus to a new client, Kay Roc, the founder of the famous fast food chain, McWilliams. As the owner of this large organization, Roc is looking to your firm to handle all of her legal needs. Marcus learns the following information from his meeting with Roc and her staff. • McWilliams recently hired a former high-ranking official from the Food and Drug...
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...endlessly facilitate in attaining the pre-set objectives. External Forces & Trend Consideration In the ‘External Forces Analysis’ organic and natural health food shops the major forces included are the legal & regulatory forces, economic forces, competitive analysis and social factors. Legal and Regulatory Factors The legal and regulatory forces are very important for the business of organic food and natural health products. Human health is a highly sensitive issue for the company, so the legal regulation regarding this business is the license of human health administration to sale the food product (Wheelan & Hunger, 2004). It is necessary for the shop to get a certification and license of the nutrition available in the products (Bradford & Duncan, 2000). The legal and regulatory framework would enhance the capability of the strategy formation of the company with the inclusion of the varied legal and regulatory aspects of food and health products (Brown, 2009). Economic Factors The economies of the countries have frequent fluctuations in them due to changing economic environment (Wheelan & Hunger, 2004). This will have a great impact on the business of health and food products. Due to the changes in the economies condition of consumers, the firm would have a rapid growth in such kinds of organic food product (Pierce & Robinson, 2004). Competitive factors Due to the preference...
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...Riordan Legal Evaluation Steve Johnson BSA/310 Jack Billingcoat 11/17/2011 Riordan’s legal business systems and policies are very well put together. Lowell Bradford is the Chief Legal Counsel for Riordan Manufacturing. The company deals with patented polymers to make plastic products, so Mr. Bradford handles these patent applications personally. The business system is handled mainly through Mr. Bradford when it comes to legal matters. All members of the company come to Mr. Bradford about legal questions and if he cannot answer it through his personal knowledge he will consult the companies law firm that is retained by Riordan Manufacturing. Litteral and Finkel is the law firm that is retained by Riordan manufacturing. They are offered a constant rate to ensure that they can quickly respond if there are any issues with litigation, tax issues, or real estate inquiries. Mr. Bradford closely observes any legal activity referred to Litteral and Finkel on behalf of the company. All legal fees are charged against the retainer and if there are anymore outstanding amounts they are billed to Riordan Manufacturing at the end of the month. The retainer is a monthly charge that does not carry over into other months. Litteral and Finkel are very close to the company because of the relationship with Dr. Riordan’s cousin that used to be part of the firm before he passed away. The firm that is at Riordan manufacturing’s disposal at anytime deals with the areas of tax law, real estate...
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...Chapter One Law, Value Creation, and Risk Management A Manager’s Dilemma: Putting It into Practice Guanxi: Networking or Bribery? Issue Presented: Should a business leader in China encourage a manager to run for office? Engage in guanxi lobbying to encourage district leaders to impose stiffer emissions and mileage requirements for heavy trucks? Hire the son of a prominent local official? Whenever engaging in international business development, managers are expected to exercise their responsibilities according to the laws and practices of the countries where they conduct business. However, a manager should also consider the ethical standards in the home country, where the firm is headquartered and where the board of directors will review his or her performance, as well as what the shareholders would consider ethically acceptable. In China, companies have a long history of engaging in political activities. Chinese executives are frequently elected to local or national government to engage in guanxi lobbying, where they are permitted to make charitable contributions and report issues relevant to their corporation to the government. The Election Act of China permits the local manager of Dexter’s affiliate to seek election as a congressperson while remaining on Dexter’s payroll. In light of this legislation, the manager could run for office and, if elected, lobby to persuade district leaders to impose stiffer emissions and mileage requirements for heavy...
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...Addressing International Legal and Ethical Issues Simulation Summary LAW/421 July 2, 2012 Kathryn Harris Abstract This paper discusses many of the issues discussed in the simulation on addressing international legal and ethical issues. This paper discusses many of the issues involved in resolving legal disputes in international transactions. Some of the issues discussed include selecting local counsel, fully understanding the foreign laws, due diligence, and choosing the right law and dispute resolutions. This paper also highlights some of the factors that could possibly work against CadMex when it comes to its decision on sublicensing agreements. Some of the factors discussed in this paper include time and cost increases in addition to price differences between generic brands in Canada and CadMex’s brand. The paper will also discuss some of the ways local customs and laws can conflict and how to deal with the situation. Finally, this paper will also cover how companies should resolve domestic and international disputes differently than the companies discussed in the week one readings. Addressing International Legal and Ethical Issues Simulation Summary Understanding how to address international legal and ethical issues is essential in creating a strong business relationship with other businesses abroad. There are many issues involved in resolving international legal disputes including selecting local counsel, full understanding of the local laws, due diligence...
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...relationship by showing that the conversation between Virginia and Teddy was a legal advice. Inferences can only be made objectively, and should not be made from mere beliefs . What Virginia provided, in the conversation between her and Teddy, are deemed to be her opinion rather than a proper...
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...complainants or interested third parties in formal dispute settlement activity related to their market access interests. This paper focuses on costs of the WTO’s extended litigation process as an explanation for the potential but “missing” developing country engagement. We provide a positive examination of the current system, and we catalogue and analyze a set of proposals encouraging the private sector to provide DSU-specific legal assistance to poor countries. We investigate the role of legal service centres, non-governmental organizations, development organizations, international trade litigators, economists, consumer organizations, and even law schools to provide poor countries with the missing services needed at critical stages of the WTO’s extended litigation process. In the absence of systemic rules reform, the publicprivate partnership model imposes a substantial cooperation burden on such groups as they organize export interests, estimate the size of improved market access payoffs, prioritize across potential cases, engage domestic governments, prepare legal briefs, assist in evidentiary discovery, and pursue the public relations effort required to induce foreign political compliance. JEL No. F13 Keywords: WTO, Dispute Settlement, Developing Countries Bernard M. Hoekman‡ Sciences Po, Paris World Bank & CEPR ________________ † Bown (corresponding author): Okun-Model Fellow in Economic Studies (The Brookings Institution) and Department of Economics and International...
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...All businesses have their own way of doing things. They all have their own strengths, weaknesses, structures, procedures, opportunities, and hindrances. At the end of the day, a business has to do what works for them. Our company is known as a comprehensive financial planning firm with a focus on the elderly population. We concentration on Tax, investment and Legal Planning with estate and elder law and elder care health issues. Our goal is to make sure our clients not only enjoy their retirement but stay in retirement. The company principals are to provide exceptional customer service with dignity to our clients. We provide this element of service by starting the relationship with our clients by focusing on what their life goals are. We feel that by helping better define their goals and what steps need to be taken to accomplish them, it brings purpose to their investments, assets and lifetime of hard work, which goes beyond just the idea of growing your money with no end in mind or purpose. We also strive to find creative ways to give back to our communities we live and work in. We feel it is our responsibility to give back to the communities that support us and assist the less fortunate. We have tried to focus a lot of our marketing towards giving to charities and helping our clients give towards causes that are close to their hearts. During the year we have chosen certain causes to donate towards as our clients will give us a referral or donate a percentage of sales...
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...and Application Instructor ________ Date _________ Management Planning and Ethics Only during the last few decades has planning become a widespread function of management. In the mid-1900s formal planning was only adopted by a few large corporations. Nowadays, aggressive and opportunistic entrepreneurs who run small firms also engage in formal planning (Bateman & Snell, 2009). Planning is directed to set up goals and to decide in advance what actions should be taken in order to achieve the established organizational goals. Planning includes activities directed to analyze the current situation, anticipate the future, as well to determine objectives and resources that will be used to achieve them. Planning is not considered as an informal response to a crisis. Planning is a purposeful effort geared towards providing “individuals and work units with a clear map to follow in their future activities; at the same time this map may be flexible enough to allow for individual circumstances and changing conditions” (Bateman & Snell, 2009, p. 132). The purpose of this paper is to evaluate Arthur Andersen’s, LLP, planning function of and how legal issues, ethics, and corporate social responsibilities impacted Arthur Andersen’s management planning. Arthur Andersen, LLP In 1913, Arthur Andersen and Clarence De Lany, accounting professors at Northwestern University, formed Andersen, DeLany & Co. A few years later, DeLany left the company; therefore the company’s name changed...
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...Where the firm obtains information that would have caused it to decline an engagement if that information had been available earlier, policies and procedures on the continuance of the engagement and the client relationship should include consideration of: (a) The professional and legal responsibilities that apply to the circumstances, including whether there is a requirement for the firm to report to the person or persons who made the appointment or, in some cases, to regulatory authorities; and (b) The possibility of withdrawing from the engagement or from both the engagement and the client relationship. 35. Policies and procedures on withdrawal from an engagement or from both the engagement and the client relationship address issues that include the following: • Discussing with the appropriate level of the client’s management and those charged with its governance regarding the appropriate action that the firm might take based on the relevant facts and circumstances. • If the firm determines that it is appropriate to withdraw, discussing with the appropriate level of the client’s management and those charged with its governance withdrawal from the engagement or from both the engagement and the client relationship, and the reasons for the withdrawal. • Considering whether there is a professional, regulatory or legal requirement for the firm to remain in place, or for the firm to report the withdrawal from the engagement, or from both the engagement and the client...
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...internet Ethicial and Legal issues Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser https://hwguiders.com/downloads/hum-186-week-4-internet-ethicial-legal-issues/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) HUM 186 Week 4 The Internet: Ethical and Legal Issues The “Information Superhighway”, or Internet, is a powerful medium for today’s information driven society. From its humble beginnings as a series of networks established to help the military and government share resources, it has become a place for people to engage in commerce and also for people to interact socially in both business and personal faculties. Along with the excellent opportunities for meaningful communication in this new atmosphere, the Internet has evolved as an open, democratic cyber society marked by free speech and volunteerism. It is a community gathering place for people to share ideas, concerns, stories and opinions, and to give help and assistance to one another. (Mills-Scofield) There has also arisen a series of problems. Whenever any major development in society is conceived, such as when telephones were introduced, problems ensue. The Internet, because of its modern nature is not really well dealt with when it comes to existing ethical and moral issues. Being that the Internet...
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...Abstract As a manager and supervisor of an accounting department, discuss the following issues related to the employment-at-will doctrine and liability of an employer based on actions and responses to the employee’s behavior and actions. Jennifer, a recent graduate, has recently been hired by your accounting firm out of college. Upon being hired, she engages in a number of different behaviors that need you attention. Within each scenario of the employer vs. employee situation, will contain a list of steps to address the situation. Considering the following informative legal outcomes to the Employment-at-Will such as: the firms allowance legally in firing the employee based on the employment-at-will doctrine; the legal implications for the employer vs. the employee in the particular situation at hand; preventative measures that the employer should have or put into place in order to reduce any risk or liability; and if there is any “exceptions” to the employment-at-will doctrine that would apply in the particular incident. Employment-At-Will Doctrine Managers and Supervisors within accounting departments hold the right to authorize hiring, suspending, or terminating employees in authorizations to hire, suspend, or terminate an employee based on the Employment-at-Will doctrine. Given the documented performance of the employee, Jennifer, a recent graduate and hired by the accounting firm; the company has devised an affirmative plan of action to mitigate the incidental behavior...
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...faced with a variety of legal issues at the state levels; they are affected by legal issues on the national level affecting their everyday affairs. Physician’s ownership, safe harbor requirements, out-of-network fees are a few of the legal issue. According to “Robert Mosher, JD, partner at Nossaman, leading expert in health care law, say that the most common legal issue he deals with involves physician ownership and more particularly, the buying and selling of acute surgery centers units”. Physicians Ownership The number one problem is the buying out of retiring owners and bringing in new owners. Some acute surgery centers fight with interpreting their existing agreements concerning buying and with the legal obligation of selling for a fair market value. Finding enthusiastic buyers willing to pay fair market value for surgery centers financially burden can be a tentative course of action. Owners of surgery centers must have an open mind about new partners. They should not wait until there is a predicament or profitability problem. The owners should be constantly evaluating new partners that can progress the productivity of the center. When the centers try to buy or sell units, establishing the fair market value of a facility can be challenging. Although it is recommended that the fair market value is used to agree on the cost of buy-in, there is not a regulatory direction on how to determine the value (Dunn, 2009). The centers use valuation firms to establish their value...
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