Sheena Chhabra, Ravi Kiran and A.N. Sah
The purpose of this paper is to examine the relevance of information, transparency and information efficiency in short-run performance of new issues. The current research…
Abstract
Purpose
The purpose of this paper is to examine the relevance of information, transparency and information efficiency in short-run performance of new issues. The current research evaluates the short-run performance of IPOs during 2005-2012, which even includes the recessionary period. The present study evaluates the impact of informational variables on first-day returns.
Design/methodology/approach
The short-run performance of the IPOs is measured through market adjusted excess return. A structural equation model (SEM) has been designed to identify how information influences the short-run performance of IPOs.
Findings
The results of structural model reveal that the sale of promoters’ stake and underwriters’ reputation are the major contributors towards information and are found to be highly significant statistically. The model also shows that the issue size (a component of information) is statistically insignificant at 5 per cent. The model suggests that the availability of information has negative impact on the first day returns indicating that the issuer which disclose maximum information to the public get lower returns on the listing day and hence, their issues are less underpriced.
Originality/value
The present study has a contribution in investment decisions for global investors, as the participation of international investors is common in IPOs of emerging markets. The findings of the study are expected to be useful to the practitioners in predicting the pricing of IPOs based on the informational variables influencing their performance.
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Sheena Chhabra, Ravi Kiran, A.N. Sah and Vikas Sharma
The purpose of this paper is to focus on examining the first day returns of initial public offerings (IPOs) and the role of information on their performance. The study tries to…
Abstract
Purpose
The purpose of this paper is to focus on examining the first day returns of initial public offerings (IPOs) and the role of information on their performance. The study tries to optimize the returns of the new issues during 2005-2012 with risk as a constraint.
Design/methodology/approach
The initial returns are measured through the market-adjusted excess return and the risk associated with the new issue is measured through underwriters’ reputation. The returns have been optimized through a mixed integer linear problem using the Maple software.
Findings
The previous studies show that various informational variables affect the listing day returns significantly. The results of the present study indicate that the mean of initial returns for IPOs during 2005-2012 is 18.03 and the mean risk for these issues is 0.46. The findings also suggest that the optimal returns are obtained in the pre-recession era (2005-2008) and the value for the same is 50.02 percent.
Originality/value
The current study contributes in the investment decisions for global investors as every investor wants to maximize his/her returns. The optimal returns with risk as a constraint will help the investors in improving their investment decision as a prudent investor does not aim solely at maximizing the expected return of an investment but is also interested in optimizing with the minimization of risk.
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Shalini Srivastava, Pavitra Dhamija and Poornima Madan
Using the person-organization (P-O) fit perspective, the present study explores the interlinkages between workplace spirituality (WPS) and organizational citizenship behavior…
Abstract
Purpose
Using the person-organization (P-O) fit perspective, the present study explores the interlinkages between workplace spirituality (WPS) and organizational citizenship behavior (OCB). It further attempts to understand the mediating effects of psychological ownership and innovative work behavior (IWB) for the association.
Design/methodology/approach
Data was collected in three waves from 283 frontline hotel employees in the Delhi NCR region of India. Partial least square (PLS-structural equation modeling) was used to test the hypothesized model.
Findings
A significant association was found between WPS and OCB. Psychological ownership and IWB had a significant serial mediation effect on WPS and OCB relationship.
Practical implications
The involvement of spirituality in the workplace is one of the significant factors contributing to positive organizational performance from the perspective of perishable services. Hence, understanding and implementing best practices to encourage WPS and strengthening psychological ownership for favorable behavioral outcomes must be one of the significant priorities for human resource managers in the hospitality industry.
Originality/value
WPS is an under-explored area in the hospitality industry. The present study will be novel and critical in bridging the research gap wherein psychological ownership and IWBs mediate the relationship between WPS and OCB in the hospitality sector. Furthermore, the present study notably contributes to using person organizational fit theory for the hypothesized relationships between study variables for the hospitality sector employees in India.