Elaine Ramsey, Pat Ibbotson, Jim Bell and Brendan Gray
The Internet is causing fundamental changes in the economics of service industries as new, network‐based global e‐business models emerge, where small‐ and medium‐sized enterprises…
Abstract
The Internet is causing fundamental changes in the economics of service industries as new, network‐based global e‐business models emerge, where small‐ and medium‐sized enterprises (SMEs) have been identified as key users of Internet commerce. Initially the paper contextualises the research issues via a review of the theoretical opportunities afforded firms of all sizes. Correspondingly, an examination of the practical impediments from an SME perspective suggests that, among other things, there are major hurdles for SMEs going online including strategic appreciation of the dynamics of the Web and the development of capabilities for managing the information infrastructure for e‐business. To illustrate the inherent issues, the findings of empirical research are presented. Both inductive and deductive methodological approaches were employed to investigate e‐business awareness, attitudes and activities among a sample of Irish (north and south) service sector SMEs.
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Isobel Cunningham, Sharon Loane and Pat Ibbotson
This study aims to investigate the internationalisation strategies of small games development firms from Poland and Hungary.
Abstract
Purpose
This study aims to investigate the internationalisation strategies of small games development firms from Poland and Hungary.
Design/methodology/approach
This enquiry adopts a qualitative approach, whereby firms were identified from online searches, and secondary information was sought on each firm prior to in‐depth interview, in order to highlight the issues relating to internationalisation/growth.
Findings
The paper provides evidence that small games development firms undertake rapid internationalisation, despite resource constraints. Firms were founded by teams of entrepreneurs who unlike many other international entrepreneurs, did not have a priori experience, sometimes moving from being hobbyists into commercial operations. These often exist in a pre‐natal phase some years before formal incorporation, an important phase when many of the resources required are sourced. The findings show only partial support for RBV, as these firms were acquiring and controlling resources from their environment on a freelance and low commitment basis. The authors speculate that these firms display dynamic capabilities of the highest order in order to do so.
Research/limitations/implications
This enquiry adds to understanding of the (international) growth strategies of small games development firms, and gives insight into how they access dynamic capabilities. However, the number of firms investigated is small and from two Eastern European countries, therefore further larger scale research should be undertaken.
Originality/value
Based on this exploration new insights are developed with regard to an under researched sector, and how such firms undertake rapid internationational growth, despite being particularly resource constrained. In particular, the entrpreneurs in these firms have little experience and creatively acquire and control resources in order to grow rapidly. The authors speculate that they display advanced dynamic capabilities.
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Denise Crossan, Pat Ibbotson and Jim Bell
The paper's purpose is to present qualitative findings describing entrepreneurial differentiations between non‐profit organisations along a social economic continuum. The paper…
Abstract
Purpose
The paper's purpose is to present qualitative findings describing entrepreneurial differentiations between non‐profit organisations along a social economic continuum. The paper aims to focus on those non‐profit organisations classified as “social” and those more entrepreneurial behaving organisations classified as “social commercial”.
Design/methodology/approach
The data were taken from recent research examining current classification systems and performance measurement indicators applied to not‐for‐profit and for‐profit organisations in an Irish regional context. Having reviewed the extant literature on classification systems and measurement indicators for non‐profit organisations, the social economic continuum model and theoretical measurement framework were developed. In order to test the models, the study employed a pragmatist mixed methodological approach; employing quantitative surveys and in‐depth interviews.
Findings
The paper presents key entrepreneurial differentiating themes between “social” and “social commercial” organisations, and discusses the triggers that produce a “hologram” effect or style of management in the third sector.
Practical implications
The identification of entrepreneurial themes allows for the analysis of the non‐profit organisations from overly social in their activities and presentation, to overly economic in their behaviour. It allows for a greater understanding of the management processes employed by non‐profit organisations to create social value and meet their social aims and purpose.
Originality/value
The paper carries out a unique inter‐sector comparison of non‐profit organisations to determine entrepreneurial differentiations amongst non‐profit businesses employing entrepreneurial methodologies and behaviours to achieve social good.
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Madhvi Sethi, Pooja Gupta, Shubhadeep Mukherjee and Siddhi Agrawal
Behavioral finance literature has long claimed that internet stock message boards can move markets. In this chapter, the authors study more than 2,000 internet board messages…
Abstract
Behavioral finance literature has long claimed that internet stock message boards can move markets. In this chapter, the authors study more than 2,000 internet board messages posted across finance message boards in India (Chittorgarh, etc.) for 110 companies that went for initial public offering (IPO) in the last one year. This study has multi-fold objectives. First, the authors try to identify the factors which lead to a discussion on an IPO stock in the message board. Second, the authors identify the factors which differentiate a widely discussed stock from the less discussed one. Next, the authors apply advanced machine learning technique to identify the topics which are discussed in the message board through automatic topic modeling. The methodology used includes a logistic regression model for identifying firm characteristics which leads to a probability of getting stakeholders’ attention and hence more discussion. The authors also use advanced topic modeling techniques to identify topics of discussion on the message boards through machine learning. The authors find that larger sized firms, younger firms, firms with low leverage, and non-manufacturing firms get discussed more and the topics of discussion relate to their financial statements, trading strategies, stock behavior, and performance.
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This study investigates the pricing of new issues in the Indian equity market during the period shortly following the deregulation of the market for new issues. We evaluate the…
Abstract
This study investigates the pricing of new issues in the Indian equity market during the period shortly following the deregulation of the market for new issues. We evaluate the importance of book value and market value estimates in determining issue prices as well as prices on the first day of trading. We also use variables that may reduce uncertainty (age to proxy for awareness of the company) and information asymmetry (the extent of the promoter’s contribution to the new issue) in order to test whether uncertainty and information asymmetry have an impact on pricing of new issues. Results indicate that pricing of new issues appears to be consistent with rational decision‐making. We also examine the extent of underpricing of IPOs in India by calculating the rate of return earned by the subscribers on the first day the shares trade publicly. The first day return is, on average, 72 per cent. We then simulate what this return would have been if the government regulations had still been in place. With government restrictions, the first day’s return would have been 160 per cent. These results are consistent with the expectations that removal of restrictions results in lower returns to subscribers and lower cost of capital for the issuing firm. Finally, we examine whether there are differences in first day returns or other variables for companies that issue shares at a price above the government benchmark and the companies that issues shares at prices below the benchmark. Results indicate that there are no significant differences in first day returns between the two groups of companies. There are, however, significant differences between the two groups with respect to relative size of the issue and the difference between the forecasted and current book value. This indicates that the CCI price might be used as a benchmark, which is, then adjusted upwards or downwards to place greater emphasis on expected performance.
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The purpose of this paper is to analyze the long-term performance of construction sector initial public offers (IPO) made in India during 2006–2015. The study aims to compare the…
Abstract
Purpose
The purpose of this paper is to analyze the long-term performance of construction sector initial public offers (IPO) made in India during 2006–2015. The study aims to compare the performance of the construction sector IPOs with the non-construction sector IPOs and finds the determinants of long-term performance of construction sector IPO with a time horizon of three years. The study also attempts to find out, if the long-term IPO underpricing that has been discussed in the literature, really exists or it is a myth.
Design/methodology/approach
The study uses data of IPOs listed on National stock exchange during 2006–2015. In total, 281 IPOs are considered for the study, among which 44 are construction sector IPOs. IPOs anniversary performance of three successive years is calculated from the date of listing, and a random effect panel regression model with clustered robust estimates using the maximum likelihood method is performed to find out the determinants of IPO performance. The data are also tested for multicollinearity, stationarity and heteroscedasticity to ensure the robustness of results.
Findings
The results show that in the long-run construction sector IPOs outperform the non-construction sector IPOs, though the performance is below average when compared to market returns. The IPO underpricing is a myth, and IPO underperformance is a reality in India. The performance of construction sector IPOs is driven positively by market return, size of the firm and negatively by liquidity of the firm.
Originality/value
The paper is the first attempt to analyze the performance of construction sector IPOs, and compare it with non-construction sector IPOs. The study uses a random effect panel regression model with robust estimates using the maximum likelihood method to ensure the robustness of results. This is the first time the performance of IPOs is studied with a panel data approach.
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The Minister of Civil Aviation, Lord Pakenham, has appointed Mr J. Roland Adams, K.C., to hold a Public Court of Inquiry into the accident which occurred at Mill Hill, London…
Abstract
The Minister of Civil Aviation, Lord Pakenham, has appointed Mr J. Roland Adams, K.C., to hold a Public Court of Inquiry into the accident which occurred at Mill Hill, London, N.W.7, on Tuesday, October 17, 1950, to the British European Airways Dakota aircraft G‐AG1W.
Sunaina Dhanda and Shveta Singh
The purpose of this study is to see if market timing predicts the first reporting of earnings performance after the issue, i.e. the issue-year earnings performance. Furthermore…
Abstract
Purpose
The purpose of this study is to see if market timing predicts the first reporting of earnings performance after the issue, i.e. the issue-year earnings performance. Furthermore, this study examines the behaviour of financial and non-financial issuers’ performance in the light of varied market timings.
Design/methodology/approach
This study focuses on 785 NSE-listed initial public offerings that took place between April 2010 and December 2021. This study evaluates market timing by using moving averages. Using multiple regression analysis, the research further investigates the impact of market timing on issue-year earnings performance for financial and non-financial issuers on the basis of an interaction (moderation) effect.
Findings
This study finds that there is a significant presence of market timing in India, which predicts issue-year earnings performance. This study also demonstrates that hot market issuers’ performance is heavily influenced by market timing for non-financial issuers only. However, financial companies are not influenced by market timing.
Research limitations/implications
The findings of this study will assist the potential investors, analysts and stakeholders about performance of public issuers in India. Lower earnings performance for hot market non-financial issuers implies that the issuers’ market performance may not be supported by earnings figures. A market performance that is not synchronous with earnings will not last long. The findings of this study hold implications to the regulators as well to keep an eye on issuers’ earnings performance alongside the stock performance. Apart from that, the observations in context of financial and non-financial issuers provide insight about the variation in performance of public issues on the basis of background.
Originality/value
To the best of the authors’ knowledge, this is the only study to examine earnings performance in the context of market timing in India. This study holds significance in terms of methodology for anticipating the presence of market timing and the study of interaction effects. Moreover, it is one of the few studies that has focused on comparing financial and non-financial issuers around the world.