Suman Neupane and Biwesh Neupane
The purpose of this paper is to examine the impact of mandatory regulatory provisions on board structure and the influence of such board structure on institutional holdings.
Abstract
Purpose
The purpose of this paper is to examine the impact of mandatory regulatory provisions on board structure and the influence of such board structure on institutional holdings.
Design/methodology/approach
The study uses unique hand-collected data set of Indian IPOs during the 2004-2012 period after the corporate governance reforms with the introduction of clause 49 in the listing agreements in 2001. Using OLS regression, the paper empirically analyses the determinants of board size and board independence at the time of the IPOs and the influence of such a board structure on shareholdings by domestic and foreign institutional investors.
Findings
The authors find that complying with mandatory regulatory provisions does not impede firms from structuring their boards to reflect the firms’ advising and monitoring needs. The authors also find that complying with provisions have positive implication for the firm, as firms with greater board independence appear to attract more foreign institutional investors.
Originality/value
To the authors’ best knowledge, this is the first study to examine the issue in a regime where regulation mandates the composition of the board of directors. The paper also extends the literature on institutional holdings by providing evidence on the impact of board structure on institutional ownership at a critical time in a firm’s life cycle when concerns for endogeneity for empirical investigations are weaker.
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Qingxia Wang, Robert Faff and Min Zhu
More studies have investigated the relation between option measures and stock returns during scheduled corporate events. This study adds to the literature and investigates the…
Abstract
Purpose
More studies have investigated the relation between option measures and stock returns during scheduled corporate events. This study adds to the literature and investigates the informational role of options concerning stock returns following unscheduled corporate news events. The authors focus on individual analysts' recommendation changes rather than consensus revisions, as the recommendation consensus might discard a large amount of potentially valuable information in the aggregation process.
Design/methodology/approach
Based on the econometric model, the authors follow Bakshi et al. (2003) to construct the model-free option implied measures. The authors further decompose the implied option variance into upside and downside components. In such a way, the different informational roles of call and put options can be distinguished. A variety of regression analyses are conducted to examine the predictive power of option implied measures, and the ordered probit model is used to test the tipping hypothesis of analyst recommendations.
Findings
This study’s results show that the option market impounds the “valuable” firm-specific news; thus, the pre-event option market is strongly related to stock returns around recommendations even though recommendation changes are largely “unscheduled”. At the same time, these results suggest that upside (good) and downside (bad) implied volatilities contain distinctive information on subsequent stock returns.
Originality/value
This study provides new evidence that an increase in upside (downside) volatility around analyst recommendation changes would increase the probability that analysts upgrade (downgrade) the stock. The findings provide implications for investors and risk managers in making investment decisions.
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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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N. Dhanunjayarao Borra and Venkata Swamy Naidu Neigapula
The tear strength (Ts) is a significant property for any kind of soft polymeric material such as rubber, elastomer, viscoelastic material and its composites, to quantify the…
Abstract
Purpose
The tear strength (Ts) is a significant property for any kind of soft polymeric material such as rubber, elastomer, viscoelastic material and its composites, to quantify the suitability of a material for any shape memory applications. Many times, the soft elastomeric polymer material has to be capable enough to deform to a maximum extent of displacement but at the same time, it has to withstand the maximum load without fail. Along with shape recovery properties (i.e. the ability to recover its shape from programmed to the original), the success of the shape memory cycle is mainly depending on its stiffness and strength. It has to resist tear during stretching (i.e. programming stage) as repeatedly subjected to deformation, and, hence, it is important to study the tear behaviour for shape memory polymers (SMPs) and their composites. The purpose of the work is to investigate the effect of parameters on Ts of 4D printed specimen using Taguchi method.
Design/methodology/approach
The objective of the work is to tailor the Ts of SMPs by reinforcing the graphene nano particles (GNPs) in a blended photopolymer (PP) resin with flexible PP and hard PP resin. In this study, a total of nine experiments were designed based on the L9 orthogonal array (OA) using the design of experiments (DOEs). All the shape memory photopolymer composite’s (SMPPCs) specimens are fabricated using masked stereolithography (MSLA), also known as resin three-dimensional printing (R3DP) technique.
Findings
Specimens are tested using universal testing machine (UTM) for maximum tear force (Fmax) and displacement (δ) caused by tearing the specimen to evaluate the strength against the tear. The results showed that the Wt.% of resin blend highly influenced both Fmax and δ, while GNPs also had an impact on δ. The specimens are offering more tear resistance for those specimens blended with less Wt.% of flexible PP at the same time the specimens enable more δ for those specimens reinforced with 0.3 Wt.% GNPs at 10-s exposure time. The optimum combinations are A1, B1 and C3 for the Fmax and Ts and at the same time A1, B3 and C3 for δ.
Research limitations/implications
To customise the tear resistance of SMPPCs using MSLA 3 D printing, this study suggested a blend of PP resins reinforced with GNPs. This opens up a new path for creating novel, inexpensive multi-functional 4-dimensional (4D) printed parts.
Originality/value
The use of flexible PP and hard PP resin blends, fabricating the SMPPCs specimens using 3 D printed MSLA technology, investigating the effect of GNPs, resin blend and exposure time, optimizing the process parameters using Taguchi and the work were all validated using confirmation tests and regression analysis using test train method, which increases the originality and novelty.