The objective of the Indonesian economic policy is to alleviate poverty and increase employment. The existence of Free trade zone area or special zones (SEZ) have been proven to help countries in fostering economic growth. Some of the key characteristics of successful zones are that they offer immediate access to high quality infrastructure, clearly titled land, facilities, and support services. In addition streamlined regulatory enforcement, simpler business establishment rules, expedited customs administration and other special administrative and approval procedures are also offered in such zones.This paper is trying to help the government to improve FTZ policies in Indonesia by providing a benchmark to other FTZ countries such as China, India, Malaysia, Thailand, and Vietnam. While China has the most established SEZ program, Malaysia and Thailand also have highly-regarded SEZs and investment incentives. Vietnam and India have gotten into the SEZ competition more recently and are still working out kinks in their policies. Those neighboring countries have developed SEZs in significant quantities but the greatest returns have come from a subsection of large-scale zones with favorable locations, good planning and access to resources. Thailand has a smaller number of Zones, but a higher rate of successful zones. How the position of Indonesia compare to nine Asean countries is becoming the main question of this study.
{"title":"Competitiveness of Free Trade Zone Area: Comparison between Indonesia & ASEAN Countries","authors":"S. Wahyuni, Esther Sri Astuti S. A.","doi":"10.2139/ssrn.1867832","DOIUrl":"https://doi.org/10.2139/ssrn.1867832","url":null,"abstract":"The objective of the Indonesian economic policy is to alleviate poverty and increase employment. The existence of Free trade zone area or special zones (SEZ) have been proven to help countries in fostering economic growth. Some of the key characteristics of successful zones are that they offer immediate access to high quality infrastructure, clearly titled land, facilities, and support services. In addition streamlined regulatory enforcement, simpler business establishment rules, expedited customs administration and other special administrative and approval procedures are also offered in such zones.This paper is trying to help the government to improve FTZ policies in Indonesia by providing a benchmark to other FTZ countries such as China, India, Malaysia, Thailand, and Vietnam. While China has the most established SEZ program, Malaysia and Thailand also have highly-regarded SEZs and investment incentives. Vietnam and India have gotten into the SEZ competition more recently and are still working out kinks in their policies. Those neighboring countries have developed SEZs in significant quantities but the greatest returns have come from a subsection of large-scale zones with favorable locations, good planning and access to resources. Thailand has a smaller number of Zones, but a higher rate of successful zones. How the position of Indonesia compare to nine Asean countries is becoming the main question of this study.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123775160","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The present research studies the causality relationship between the three variables of foreign direct investment (FDI), export (EX) and gross domestic product (GDP) for the period from 1977 to 2009 using Panel model for Mena countries. Having performed the variables stationarity test, Pedroni co-integration test has been done which indicates that there is no long-run relationship between variables. The test results indicate that there is a bidirectional causality relationship between GDP and FDI and these two reinforce each other and there is a causality relationship from FDI to EX in this zone.
{"title":"The Relationship between Growth, Foreign Direct Investment and Trade in MENA Countries: A Causality Test","authors":"Mehdi Behname","doi":"10.2139/ssrn.1867805","DOIUrl":"https://doi.org/10.2139/ssrn.1867805","url":null,"abstract":"The present research studies the causality relationship between the three variables of foreign direct investment (FDI), export (EX) and gross domestic product (GDP) for the period from 1977 to 2009 using Panel model for Mena countries. Having performed the variables stationarity test, Pedroni co-integration test has been done which indicates that there is no long-run relationship between variables. The test results indicate that there is a bidirectional causality relationship between GDP and FDI and these two reinforce each other and there is a causality relationship from FDI to EX in this zone.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"80 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126007913","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Development finance is at a turning point. There is talk about a “triple revolution of goals, actors and tools.” As much of Asia grows its way out of poverty, aid will increasingly be focused on Africa and on countries plagued by instability, or with governments unable to meet the basic needs of their populations. A growing share of development finance will be directed to tackling global public goods - like climate change, conflict prevention, and public health. Responsibility for addressing global challenges will increasingly be borne by coalitions that cut across states, the private sector, and civil society. These networks to address poverty and global issues will become a feature of the international architecture in a multipolar world. The rules of the game and the tools of development assistance need to evolve to focus on transparency, results, accountability, a market-driven division of labor and flexible partnerships for the future development finance system to become an effective tool of global problem solving.
{"title":"The Future of Development Finance","authors":"N. Shafik","doi":"10.2139/ssrn.1886530","DOIUrl":"https://doi.org/10.2139/ssrn.1886530","url":null,"abstract":"Development finance is at a turning point. There is talk about a “triple revolution of goals, actors and tools.” As much of Asia grows its way out of poverty, aid will increasingly be focused on Africa and on countries plagued by instability, or with governments unable to meet the basic needs of their populations. A growing share of development finance will be directed to tackling global public goods - like climate change, conflict prevention, and public health. Responsibility for addressing global challenges will increasingly be borne by coalitions that cut across states, the private sector, and civil society. These networks to address poverty and global issues will become a feature of the international architecture in a multipolar world. The rules of the game and the tools of development assistance need to evolve to focus on transparency, results, accountability, a market-driven division of labor and flexible partnerships for the future development finance system to become an effective tool of global problem solving.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123446969","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article traces the evolution of knowledge-based economic development in the Arab World. In pursuing this objective, many countries in the region have made large state-driven human capital investments with the goals of job creation, economic integration, economic diversification, environmental sustainability, and social development. An assessment of the effectiveness of Arab investments in human capital shows marginal progress towards knowledge-based development over the last decade. A disconnect between the skills developed in Arab skills formation systems and those required by private sector employers relegates Arab businesses to contesting lower-skilled, non-knowledge intensive industries which has stalled knowledge-based development in the region.
{"title":"Knowledge-Based Economic Development as a Unifying Vision in a Post-Awakening Arab World","authors":"Wesley Schwalje","doi":"10.2139/ssrn.1809224","DOIUrl":"https://doi.org/10.2139/ssrn.1809224","url":null,"abstract":"This article traces the evolution of knowledge-based economic development in the Arab World. In pursuing this objective, many countries in the region have made large state-driven human capital investments with the goals of job creation, economic integration, economic diversification, environmental sustainability, and social development. An assessment of the effectiveness of Arab investments in human capital shows marginal progress towards knowledge-based development over the last decade. A disconnect between the skills developed in Arab skills formation systems and those required by private sector employers relegates Arab businesses to contesting lower-skilled, non-knowledge intensive industries which has stalled knowledge-based development in the region.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125409303","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
For African countries, the revenue derived from the uranium mining operations of multinational corporations is despite the high price of uranium minimal, uncertain and volatile. The financial agreements that these countries make with the uranium producers regarding their share in the profits are the primary reason for this state of affairs. These contracts are often the result of negotiations that take place behind closed doors. This report analyses the financial aspects of uranium mining in the main African uranium producing countries Namibia, Niger, Malawi and South Africa and examines the activities of the four largest multinational uranium mining companies in Africa: the French AREVA group, the English-Australian Rio Tinto, the Australian Paladin Energy and the South-Africa-based AngloGold Ashanti. Currently, one-fifth of all uranium worldwide is mined in Africa, and production is expected to double in the next two years. Nevertheless, uranium mining remains an uncertain source of revenue for African countries given the unstable price of uranium and the dependence on corporate profits. The primary sources of revenue from uranium mining for African countries are corporate income taxes and royalties (a percentage of uranium sales). But the financial arrangements between multinational corporations and African governments vary widely. For example, Niger has acquired the right to sell a portion of the uranium produced itself rather than relying on AREVA to do so. In addition, Nigers royalties rate for uranium is higher than that in Namibia. Paladin Energy in Malawi and AngloGold Ashanti in South Africa pay less tax and other incentives per kilogram of uranium sold than Rio Tinto in Namibia and AREVA in Niger. The multinational corporations are also allowed to write off investments at an expedited rate, further reducing the value and certainty of revenues to host states. Over the past five years, total revenues received by host states amounted to only approximately 17% of the value of the uranium sold.
{"title":"Radioactive Revenues: Financial Flows between Uranium Mining Companies and African Governments","authors":"Albert ten Kate, J. Wilde-Ramsing","doi":"10.2139/SSRN.1777084","DOIUrl":"https://doi.org/10.2139/SSRN.1777084","url":null,"abstract":"For African countries, the revenue derived from the uranium mining operations of multinational corporations is despite the high price of uranium minimal, uncertain and volatile. The financial agreements that these countries make with the uranium producers regarding their share in the profits are the primary reason for this state of affairs. These contracts are often the result of negotiations that take place behind closed doors. This report analyses the financial aspects of uranium mining in the main African uranium producing countries Namibia, Niger, Malawi and South Africa and examines the activities of the four largest multinational uranium mining companies in Africa: the French AREVA group, the English-Australian Rio Tinto, the Australian Paladin Energy and the South-Africa-based AngloGold Ashanti. Currently, one-fifth of all uranium worldwide is mined in Africa, and production is expected to double in the next two years. Nevertheless, uranium mining remains an uncertain source of revenue for African countries given the unstable price of uranium and the dependence on corporate profits. The primary sources of revenue from uranium mining for African countries are corporate income taxes and royalties (a percentage of uranium sales). But the financial arrangements between multinational corporations and African governments vary widely. For example, Niger has acquired the right to sell a portion of the uranium produced itself rather than relying on AREVA to do so. In addition, Nigers royalties rate for uranium is higher than that in Namibia. Paladin Energy in Malawi and AngloGold Ashanti in South Africa pay less tax and other incentives per kilogram of uranium sold than Rio Tinto in Namibia and AREVA in Niger. The multinational corporations are also allowed to write off investments at an expedited rate, further reducing the value and certainty of revenues to host states. Over the past five years, total revenues received by host states amounted to only approximately 17% of the value of the uranium sold.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123459988","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Agriculture is the main occupation of the Indian peoples. Performance of Indian economy is dependent upon the growth of Agriculture sector. It contributes nearly 16% of India’s Gross Domestic Product (GDP) & 13% of total exports. It provides employment to 52% of the country’s work force and livelihood security to more than 620 million people. Agriculture plays an important role in economic development, such as provision of food to the nation, enlarging exports, transfer of manpower to non-agricultural sectors, contribution to capital formation, and securing markets for industrialization. Agriculture forms the backbone of Indian economy and even though large industrialization in last 60 years, agriculture still occupies a place of pleasure.
{"title":"Performance of Agriculture Sector in India: Special Reference to Post Reform Period","authors":"V. Kumbhar","doi":"10.2139/ssrn.1748246","DOIUrl":"https://doi.org/10.2139/ssrn.1748246","url":null,"abstract":"Agriculture is the main occupation of the Indian peoples. Performance of Indian economy is dependent upon the growth of Agriculture sector. It contributes nearly 16% of India’s Gross Domestic Product (GDP) & 13% of total exports. It provides employment to 52% of the country’s work force and livelihood security to more than 620 million people. Agriculture plays an important role in economic development, such as provision of food to the nation, enlarging exports, transfer of manpower to non-agricultural sectors, contribution to capital formation, and securing markets for industrialization. Agriculture forms the backbone of Indian economy and even though large industrialization in last 60 years, agriculture still occupies a place of pleasure.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"39 22","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120934520","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study makes an early attempt to estimate the magnitude and intensity of manufacturing firms’ R&D by Indian states during the period 1991‒2008 and analyses the role of regional factors on firm-level R&D activities. As there is little research on state-wise R&D performance of firms in India, this study serves an important contribution to the academic and policy realm. It has brought out the fact the total manufacturing R&D investment in India is unevenly distributed regionally with a few states accounting for disproportionate share of it. Regional heterogeneity or inter-state disparities in R&D has increased between the 1990s and the first decade of the twenty-first century. In view of this persistent regional heterogeneity in R&D, the study has developed and estimated an empirical model for a sample of 4545 Indian manufacturing firms with R&D facilities located in single state and that explicitly includes regional factors as probable factors affecting R&D. The three-step Censored Quantitle Regression results confirm that regional factors play an important role in shaping the R&D intensity of the sample of firms. This led us to some useful policy suggestions for regional governments to promote local firms’ R&D activities.
{"title":"Regional Heterogeneity and Firms’ Innovation: The Role of Regional Factors in Industrial R&D in India","authors":"J. Pradhan","doi":"10.2139/ssrn.1741127","DOIUrl":"https://doi.org/10.2139/ssrn.1741127","url":null,"abstract":"This study makes an early attempt to estimate the magnitude and intensity of manufacturing firms’ R&D by Indian states during the period 1991‒2008 and analyses the role of regional factors on firm-level R&D activities. As there is little research on state-wise R&D performance of firms in India, this study serves an important contribution to the academic and policy realm. It has brought out the fact the total manufacturing R&D investment in India is unevenly distributed regionally with a few states accounting for disproportionate share of it. Regional heterogeneity or inter-state disparities in R&D has increased between the 1990s and the first decade of the twenty-first century. In view of this persistent regional heterogeneity in R&D, the study has developed and estimated an empirical model for a sample of 4545 Indian manufacturing firms with R&D facilities located in single state and that explicitly includes regional factors as probable factors affecting R&D. The three-step Censored Quantitle Regression results confirm that regional factors play an important role in shaping the R&D intensity of the sample of firms. This led us to some useful policy suggestions for regional governments to promote local firms’ R&D activities.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"87 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-01-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129917925","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Nothing happens economically, until a customer's perception of value towards a certain product or service surpasses the price of the latter. Meaning, that value or emotion for a product or a service must at a certain point fluctuate high and above the fixed price in order for the transaction to be executed by the customer. The objective of this research is to attempt to explain this emotion consisting of hedonic and utilitarian components that leads Egyptians to perceive luxury product as a necessity casting an inelastic property over the former.They take a considerable amount of social risk to obtain this necessity. Some Egyptians are more and more inclined to purchase counterfeit luxury products. This research attempts to understand the factors behind such behavior. A counterfeit product is a product made with varying quality material using the same design, shapes, symbols, and even logos to resemble the original one but at a fraction of the price.
{"title":"The Factors that Influence the Rise of Counterfeit Luxury Products in Egypt","authors":"Karym Medhat Metwally","doi":"10.2139/SSRN.1732106","DOIUrl":"https://doi.org/10.2139/SSRN.1732106","url":null,"abstract":"Nothing happens economically, until a customer's perception of value towards a certain product or service surpasses the price of the latter. Meaning, that value or emotion for a product or a service must at a certain point fluctuate high and above the fixed price in order for the transaction to be executed by the customer. The objective of this research is to attempt to explain this emotion consisting of hedonic and utilitarian components that leads Egyptians to perceive luxury product as a necessity casting an inelastic property over the former.They take a considerable amount of social risk to obtain this necessity. Some Egyptians are more and more inclined to purchase counterfeit luxury products. This research attempts to understand the factors behind such behavior. A counterfeit product is a product made with varying quality material using the same design, shapes, symbols, and even logos to resemble the original one but at a fraction of the price.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114763740","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Form does not trump substance, and outward adherence to religious injunctions does not, without more, equal piety. Rather, piety is measured by deeds motivated by sincere faith, perceptible or imperceptible to others. The significance of this for individual Muslims is clear. And it applies to institutions that hold themselves out to the public as “Islamic”, whether in the form of Islamic banks, Islamic windows of conventional banks, or other providers of Islamic financial products and services, such as takaful and financial advisory. Islamic Financial Institutions (IFIs) must ensure that behind the scenes, in their back offices, their operations are of a quality that ensures that representations about the nature of their business model, products, services, and commercial and legal objectives are true to the religion-derived principles to which they owe their market share. This requires operational excellence in the back offices of IFIs, which must be facilitated and reinforced at the industry level. Operational excellence is the key to unlocking lasting value in Islamic Finance. This note discusses two published court opinions involving IFIs — The Investment Dar v. Blom (“Blom”) and Shamil Bank of Bahrain EC v. Beximco Pharmaceuticals Ltd. (“Shamil”) — and IFI Shari’ah Board Reports and their implications for governance and brand management. In this note, the notions of operational quality and governance are broad, and are used interchangeably.
{"title":"The Front Office Generates Revenue, the Back Office Creates Value: Operational Excellence is the Key to Unlocking Value in Islamic Finance","authors":"Hdeel Abdelhady","doi":"10.2139/SSRN.1835282","DOIUrl":"https://doi.org/10.2139/SSRN.1835282","url":null,"abstract":"Form does not trump substance, and outward adherence to religious injunctions does not, without more, equal piety. Rather, piety is measured by deeds motivated by sincere faith, perceptible or imperceptible to others. The significance of this for individual Muslims is clear. And it applies to institutions that hold themselves out to the public as “Islamic”, whether in the form of Islamic banks, Islamic windows of conventional banks, or other providers of Islamic financial products and services, such as takaful and financial advisory. Islamic Financial Institutions (IFIs) must ensure that behind the scenes, in their back offices, their operations are of a quality that ensures that representations about the nature of their business model, products, services, and commercial and legal objectives are true to the religion-derived principles to which they owe their market share. This requires operational excellence in the back offices of IFIs, which must be facilitated and reinforced at the industry level. Operational excellence is the key to unlocking lasting value in Islamic Finance. This note discusses two published court opinions involving IFIs — The Investment Dar v. Blom (“Blom”) and Shamil Bank of Bahrain EC v. Beximco Pharmaceuticals Ltd. (“Shamil”) — and IFI Shari’ah Board Reports and their implications for governance and brand management. In this note, the notions of operational quality and governance are broad, and are used interchangeably.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114470484","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The performance of Indian initial public offerings (IPO) is influenced by the ownership structure of a firm. As many firms raise the capital in the form of private equity (PE), this work highlights the impact of governance structure of private equity firms, the decision of exit through IPO route on the performance of Indian IPO. In Indian scenario, private equity (PE) backed IPO shows insignificant role in impacting the degree of underpricing of IPO as well as IPO performance. The insignificant ownership stake held by private equity investors as a consequence of regulatory constraint as well as liquidating less ownership stake through IPO is identified as a differentiating characteristic in India. These observed results are contrary to the results reported by Lee & Wahal (2004). On the other hand it supports the grandstanding hypothesis related to private equity firms put forth by Gompers (1996). However, our results show that PE investment in business group affiliated firms’ shows significant negative impact on its long term performance. The overall performance of IPO follows ‘U’ shape curve.
{"title":"Role of Private Equity Exit Strategy, Governance Mechanism and Regulatory Constraint on Performance of Indian IPOs","authors":"Phani Bv, Kunal, Supriya Katti","doi":"10.2139/ssrn.1718963","DOIUrl":"https://doi.org/10.2139/ssrn.1718963","url":null,"abstract":"The performance of Indian initial public offerings (IPO) is influenced by the ownership structure of a firm. As many firms raise the capital in the form of private equity (PE), this work highlights the impact of governance structure of private equity firms, the decision of exit through IPO route on the performance of Indian IPO. In Indian scenario, private equity (PE) backed IPO shows insignificant role in impacting the degree of underpricing of IPO as well as IPO performance. The insignificant ownership stake held by private equity investors as a consequence of regulatory constraint as well as liquidating less ownership stake through IPO is identified as a differentiating characteristic in India. These observed results are contrary to the results reported by Lee & Wahal (2004). On the other hand it supports the grandstanding hypothesis related to private equity firms put forth by Gompers (1996). However, our results show that PE investment in business group affiliated firms’ shows significant negative impact on its long term performance. The overall performance of IPO follows ‘U’ shape curve.","PeriodicalId":213910,"journal":{"name":"Emerging Markets: Regional Perspective eJournal","volume":"94 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125902178","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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