FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W18570201> ?p ?o ?g. }

• W18570201 startingPage "39" @default.
• W18570201 abstract "DOES IT PAY TO INVEST IN SMALL BUSINESS IPOS?* need for capital to finance growth and development has been a constant challenge for small businesses. Investors tend to perceive small business investments as riskier than more established vehicles such as blue chip stocks, treasury notes, bonds, and so forth. In the recent past, entrepreneurs have faced high interest rates, the reduction of government-backed loan programs, and a change in the capital gains tax regulations (1978). Taken collectively, these factors have helped to improve the climate for small business initial public offerings (IPOs). * authors thank Terry Freeman and Stewart Winograd of the National OTC Stock Journal and Professor Mark Hirschey for their assistance. An earlier draft of this paper was presented at the 30th Annual World Conference of the International Council for Small Business, Montreal, Canada, June 16-19, 1985. While internal sources and financial institutions provide most of the financing for established businesses, equity investment is especially important to new and growing small firms.1 Many investors in small business IPOs are betting that, due to a lack of generally available information, many stock offerings are initially underpriced2 and should therefore provide higher expected returns.3 1 State of Small Business: A Report of the President (Washington, D.C.: U.S. Government Printing Office, 1985), pp. 199-244. Also, it has been reported that mutual funds, pension funds, and big institutional buyers, as well as individuals, are beginning to increase investments in newly created small firms (see Alexander L. Taylor III. Making a Mint Overnight.' Time, January 23, 1984, pp. 44-54). 2 K. R. Rock, Why Issues Are Underpriced.' Ph.D. dissertation, University of Chicago, 1982. 3 Jay R. Ritter, The Hot Issues' Market of 1980,' Journal of Business, vol. 27 (1984), pp. 215-240. purpose of this study is to investigate the rationale and some of the incentives for investing in the IPO market. Three hypotheses are examined, based upon IPO initial returns and the following characteristics: (1) the age of the IPO firm, (2) offering type, and (3) industry characteristics. first hypothesis (H1) states that IPOs for less established firms are more underpriced than those for established firms as a means of compensating investors for the cost of becoming informed. second hypothesis (H2) states that riskier offerings (Best Efforts) will experience higher initial returns than less risky offerings (Firm). third hypothesis (H3) states that industry effects occur, so that one industry will experience higher initial returns than other industries. PREVIOUS RESEARCH Previously, most IPO studies focused primarily on the occurrence of hot issues' for which investores received significant positive initial returns. Several different time periods were covered in these studies. For example, Reilly and Hatfield examined the 1964 to 1965 period; McDonald and Fisher examined the first quarter of 1969; Ibbotson, 1960 to 1969; and Ritter, 1977 to 1982.4 Ritter's study further tested Rock's hypothesis that the initial underpricing of a stock reflected greater uncertainty about the IPO firm.5 Angell and Hunt concentrated on the Denver penny stock market to determine whether it was a hot issues' market during the late 1977 to mid-1980 period.6 Ibbotson and Jaffee examined whether one could predict a hot issues' market over the 1960 to 1970 period. They found that there was some predictability; however, transaction costs of buying and selling stocks may overwhelm any gains.7 4 Frank K. Reilly and K. Hatfield, Investor Experience with Stock Issues,' Financial Analysts Journal (September-October 1969), pp. 73-80; J. G. McDonald and A.K. Fisher, New Issue Stock Price Behavior,' Journal of Finance (March 1972), pp. …" @default.
• W18570201 created "2016-06-24" @default.
• W18570201 creator A5059326443 @default.
• W18570201 creator A5075475531 @default.
• W18570201 date "1986-04-01" @default.
• W18570201 modified "2023-09-23" @default.
• W18570201 title "Does It Pay to Invest in Small Business IPOs" @default.
• W18570201 hasPublicationYear "1986" @default.
• W18570201 type Work @default.
• W18570201 sameAs 18570201 @default.
• W18570201 citedByCount "5" @default.
• W18570201 crossrefType "journal-article" @default.
• W18570201 hasAuthorship W18570201A5059326443 @default.
• W18570201 hasAuthorship W18570201A5075475531 @default.
• W18570201 hasConcept C10138342 @default.
• W18570201 hasConcept C12559387 @default.
• W18570201 hasConcept C127413603 @default.
• W18570201 hasConcept C144133560 @default.
• W18570201 hasConcept C162324750 @default.
• W18570201 hasConcept C166957645 @default.
• W18570201 hasConcept C17744445 @default.
• W18570201 hasConcept C199539241 @default.
• W18570201 hasConcept C199728807 @default.
• W18570201 hasConcept C204036174 @default.
• W18570201 hasConcept C2777064782 @default.
• W18570201 hasConcept C2777764128 @default.
• W18570201 hasConcept C2777973936 @default.
• W18570201 hasConcept C2780889827 @default.
• W18570201 hasConcept C78519656 @default.
• W18570201 hasConcept C95457728 @default.
• W18570201 hasConceptScore W18570201C10138342 @default.
• W18570201 hasConceptScore W18570201C12559387 @default.
• W18570201 hasConceptScore W18570201C127413603 @default.
• W18570201 hasConceptScore W18570201C144133560 @default.
• W18570201 hasConceptScore W18570201C162324750 @default.
• W18570201 hasConceptScore W18570201C166957645 @default.
• W18570201 hasConceptScore W18570201C17744445 @default.
• W18570201 hasConceptScore W18570201C199539241 @default.
• W18570201 hasConceptScore W18570201C199728807 @default.
• W18570201 hasConceptScore W18570201C204036174 @default.
• W18570201 hasConceptScore W18570201C2777064782 @default.
• W18570201 hasConceptScore W18570201C2777764128 @default.
• W18570201 hasConceptScore W18570201C2777973936 @default.
• W18570201 hasConceptScore W18570201C2780889827 @default.
• W18570201 hasConceptScore W18570201C78519656 @default.
• W18570201 hasConceptScore W18570201C95457728 @default.
• W18570201 hasLocation W185702011 @default.
• W18570201 hasOpenAccess W18570201 @default.
• W18570201 hasPrimaryLocation W185702011 @default.
• W18570201 hasRelatedWork W129695162 @default.
• W18570201 hasRelatedWork W1487490628 @default.
• W18570201 hasRelatedWork W1517458439 @default.
• W18570201 hasRelatedWork W1539190943 @default.
• W18570201 hasRelatedWork W163130356 @default.
• W18570201 hasRelatedWork W171723798 @default.
• W18570201 hasRelatedWork W1964113819 @default.
• W18570201 hasRelatedWork W1971855795 @default.
• W18570201 hasRelatedWork W2003115897 @default.
• W18570201 hasRelatedWork W2040706369 @default.
• W18570201 hasRelatedWork W2148198877 @default.
• W18570201 hasRelatedWork W2592170272 @default.
• W18570201 hasRelatedWork W2598842933 @default.
• W18570201 hasRelatedWork W2994257580 @default.
• W18570201 hasRelatedWork W3121719340 @default.
• W18570201 hasRelatedWork W3122367063 @default.
• W18570201 hasRelatedWork W3122826868 @default.
• W18570201 hasRelatedWork W3124008197 @default.
• W18570201 hasRelatedWork W74966405 @default.
• W18570201 hasRelatedWork W2182016469 @default.
• W18570201 hasVolume "24" @default.
• W18570201 isParatext "false" @default.
• W18570201 isRetracted "false" @default.
• W18570201 magId "18570201" @default.
• W18570201 workType "article" @default.