Why Has IPO Underpricing Changed Over Time? Tim Loughran and Jay Ritter* lu the l9SOs. the average first-day rcliirn on inilial public offerings (IPOs) was 7%‚ The average firsl-day return doubled to almost I5 ’ ’ ’i during 1990-1998. before jumping to 65% during Ihe internet bubble years of 1999-2000 and then reverting la / i % during 2001-2003. We attribute much of the higher underpricing during the bubble period to a changing issuer objective function. We argue that in the later periods there
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Häjänen Berben Jordy Jorien van den Bergh Agenda Why is an IPO the right thing for GTI? How does an IPO work? Advantages and disadvantages of an IPO Financial details Execution strategy: how to attract which investors? Conclusion Why is this the right time? Company readiness • Cash injection of 40m aces needed for growth in the next three years • Impressive growth prospects will attract investors Market readiness • IPO activity is recovering after the financial crisis • Capital raised
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The most important explanation of IPOs underpricing are information asymmetry model proposed by Akerlof (1970). It is based on the discrepancy of the information between‚ investors‚ underwriters and issuers. When enterprises go public by issuing shares in stock market‚ the closing stock price on the first-trading day will reflect whether the investors think the shares worth or not. Adequate and sufficient information is required for each party to decide on the IPOs pricing as to meet their own financial
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1435417.1435450 BY CAROL XIAOJUAN OU‚ ROBERT M. DAVISON Why eBay Lost to TaoBao in China: The Global Advantage electronic commerce involves electronically-facilitated transactions between consumers through third parties.9 In China‚ a number of C2C platforms have emerged‚ such as eBay (China)‚ TaoBao and PaiPai. TaoBao‚ established in 2003‚ has quickly assumed a dominant position in this market‚ underlined by the December 2006 decision by eBay to quit the C2C market in China altogether‚4‚ 8 merging its
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Marketing XXXXXXXX 18 April 2008 There are several reasons why EBay failed trying to enter and get a foothold into the Asian Markets. American companies as a whole have had difficulties trying to get into the Asian Global market beginning in the year 2000. The biggest reason is our cultural differences. EBay was an outsider and did not understand the cultural market there. By understanding our cultural differences we will understand why EBay was unable to successfully enter the Asian market. The main
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Why does Ebay have problems in Asian Markets? This is the question to be answered in the first Case assignment of Business 401. In order to answer this question there must be discussion about Global marketing concepts‚ such as product‚ place‚ promotion‚ and pricing (the 4 p’s)‚ method of entry‚ and entry decision. Then it is important to apply those concepts to the Asian Market. In the pages that follow I will discuss the marketing decisions of Ebay in their mission to expand into Asian markets
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users get recommendations and summary related to the user ’s interest and purchasing or search history. 3.Convenient payment: all payments are handled securely by Amazon.com itself. Sellers do not have to establish different payments account as in eBay and Paypal. Amazon.com provides a convenient "1-click" ordering that allow customers to make purchases without getting into the hassles of other online checkout payment systems. 4.Extraordinary convenient shopping experience:Wide selection: being
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EBay International 1. EBay Developing a Local Strategy in an International Market Deborah Leek-Nunoo Strategy Management June 11‚ 2013 EBay International 2. Abstract During a Labor Day weekend in 1995 Pierre Omidyar (engineer) developed what he said was an “experiment”: What would happen if everyone in the world had equal access to a single global marketplace? Pierre’s idea would grow from a basic auction site that sold a broken laser pointer to a collector for $14.83;
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If you’ve an eye for car booty‚ buy items cheaply at car boot sales‚ and sell them at a profit on eBay or other auction sites. Be sure to arrive early to beat other bargain hunters. The big money lies in spotting collectables to sell on‚ so research online first or (subtly) use your mobile phone’s web browser. There’s a quick way to glean a product’s market value on eBay*. Fill in the search box and tick ’completed items’ on the left-hand grey bar. It’ll come up with a list of prices similar
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16 (2007) 116 – 135 Investor interest‚ trading volume‚ and the choice of IPO mechanism in France Salim Chahine * American University of Beirut‚ The Suliman S. Olayan School of Business‚ Bliss Street‚ P.O.Box: 11-0236‚ Beirut‚ Lebanon Received 3 February 2004 Available online 7 November 2005 Abstract This paper investigates the relationship between underpricing and investor interest level prior to and after the IPO date. Empirical tests show a significant 3-day buy-and-hold abnormal return
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