Search results

1

Performance of Polish IPO Firms: Size and Profitability Effect

100%

Lizińska J., Czapiewski L.

Gospodarka Narodowa. The Polish Journal of Economics

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2014

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vol. 269

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issue 1

53-71

PL

Celem opracowania było zbadanie trzech kwestii. Po pierwsze, czy na polskim rynku, również w okresie kryzysu finansowego, zaobserwować można było krótkoterminowy underpricing i długookresowe przewartościowanie. Ponadto, jeżeli takie anomalie znajdują potwierdzenie, to czy poziom stóp zwrotu był odmienny dla grup zróżnicowanych pod względem wielkości i zyskowności spółki. Po trzecie, obserwowano również zmianę zyskowności w okresie przed i po emisji. Badania obejmowały problematykę reakcji cenowej na skutek dokonania pierwotnych emisji akcji (IPO) rzez spółki notowane na Giełdzie Papierów Wartościowych w Warszawie w okresie 2004–2009. Koncentrowały się na determinantach zjawiska na polskim rynku i relacji pomiędzy stopami zwrotu a wielkością spółki i jej zyskownością. Stwierdzono niższy poziom underpricingu i przewartościowywania w porównaniu z dotychczasowymi badaniami. Dla większych spółek dokonujących emisji odnotowano niższe krótkoterminowe i wyższe długoterminowe stopy zwrotu. Spółki bardziej rentowne przed emisją cechowały się wyższym poziomem underpricingu. Poprawa wskaźników rentowności przed emisją była bardziej znacząca dla większych spółek, również przy mniej gwałtownym spadku ich zyskowności po wejściu na giełdę.

EN

The study investigates the price behavior after initial public offerings (IPOs) listed on the Warsaw Stock Exchange from 2004 to 2009. It focuses on possible explanations for the IPO phenomenon within the context of Poland and provides evidence on the relation between both the company size and profitability and the aftermarket price performance. The study aims to answer three questions. First, whether we could observe the short-term underpricing and the long term underperformance of Polish IPOs, including the financial crisis period. Second, if the IPO anomalies did exist, whether they were distinct for the size and profitability subsamples. Finally, the change of the profitability was investigated for size subsamples from before to after going public.A lower level of the underpricing and three-year underperformance was reported in comparison to the previous WSE studies. The pre‐issue company size influences the IPO underpricing with the higher level of returns for smaller companies. Concerning the long-term performance, the opposite relation between size and buy‐and‐hold abnormal returns was found. It was also found that the higher the pre‐issue profitability, the higher the underpricing. Large companies experience a better profitability improvement in the pre‐IPO period with the profitability ratios getting worse not so rapidly after the flotation.

2

Motives and Effects of the Initial Public Offerings on the Warsaw Stock Exchange

100%

Sosnowski T.

Equilibrium. Quarterly Journal of Economics and Economic Policy

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2015

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vol. 10

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issue 2

207-222

EN

This paper empirically investigates the links between the motives for going public and changes in the market value and efficiency of new stock companies. Using a sample of 200 firms from Warsaw Stock Exchange between 2005 and 2012 I find that the principal purpose of initial public offering is raising additional capital by the company but divestment grounds of initial shareholders are also important. I find evidence that the sale of secondary shares in the initial public offering may be seen as a negative signal at aftermarket performance of the firm. The data reveal that the most adverse long-term changes in the market value and business efficiency are observed for those companies, where in the initial public offering both primary and secondary shares were sold

3

Earnings management in the private equity divestment process on Warsaw Stock Exchange

100%

Sosnowski T.

Equilibrium. Quarterly Journal of Economics and Economic Policy

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2018

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vol. 13

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issue 4

689-705

EN

Research background: Prior studies suggest that companies which go public manage earnings in order to inflate the issue price. However, for private equity funds the use of such activity can be costly in terms of the reputation capital as they are repetitive stock market players. The results of previous research on the effect of private equity fund on the quality of pre-IPO reported earnings are mixed and inconclusive. Purpose of the article: The main aim of the study is to empirically investigate the use of pre-IPO earnings management by private equity funds in the process of divestment conducted on a stock exchange. Methods: I provide comparisons between PE-backed companies and firms with a similar initial market value and growth potential, using the method of single-linkage clustering to build the study sample. In order to assess the scale of pre-IPO earnings management, I apply the discretionary accruals model of Larcker and Richardson [2004]. Findings & Value added: Using a sample of companies conducting IPO on WSE between 2005 and 2015 I do not find evidence that the presence of private equity fund among the shareholders of the company in the period preceding first listing of shares on a stock market constrains the use of earnings management prior to the IPO. The difference between the discretionary accruals in PE-backed and matched companies, when controlling for the market value and book-to-market ratio, is statistically insignificant. To be specific, companies with private equity funds in their shareholder structure do not exhibit lower scale of earnings management prior to the IPO in comparison to other new stock companies.

4

A Practical Approach: Value-Maximizing IPO Timing Decision

100%

Krüger S.

Journal of Management and Financial Sciences

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2016

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vol. 26(4)

45-62

EN

Finding the right IPO timing is one of the most crucial decisions shareholders need to take when they want to list their company on a stock exchange. This paper proposes a simple and in practice usable model to help identify a good IPO timing window. From a theoretical point of view, the model identifies capital market inefficiencies (in case there are any) and gives shareholders of the IPO candidate hints how to use them. The key tool used is a multiple-to-multiple base trade-off analysis over time. The analysis identifies relationships between relative valuation levels investors are willing to pay and relative expected change in operating performance metrics. These market-implied valuation-to-operating performance metrics change relationships are applied to the expected operating performance of the IPO candidate over time. This allows approximating a date with the value-maximizing combination of the multiple base and the market implied valuation multiple.

5

The credibility of earnings announced by new stock companies: accrual and real earnings management

100%

Sosnowski T.

Equilibrium. Quarterly Journal of Economics and Economic Policy

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2021

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vol. 16

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issue 3

661-677

EN

Research background: An initial public offering (IPO) creates an excellent opportunity to research the impact of changes in the institutional environment of companies on the trustworthiness of the information disclosed in financial statements. Purpose of the article: The main aim of the study is to analyze the use of accrual and real earnings management to inflate earnings, revenue, or total assets around the going public event. Therefore, this paper contributes to the stream of study on the quality of financial reporting of new stock companies. Methods: Two main approaches reflect the use of various types of earnings management activities, i.e., discretionary accruals and real earnings management. In both cases, it was necessary to use proper OLS method estimated models to identify the normal level of categories that affect the results reported in financial statements. Findings & value added: Based on a sample of 183 IPOs from the Warsaw Stock Exchange between 2005 and 2015, generally, managers of newly-listed companies actively use discretionary accruals, reduce production costs and certain discretionary expenses, and abnormal cash flows from operations ? i.e., all proxies of earnings management used in the paper ? in the periods around the IPO. In the period prior to the IPO, managers more often introduce techniques typical of the real sphere of the company's operations, in particular, the deliberate modeling of certain discretionary costs. In turn, the use of discretionary accruals dominates in the year after the IPO.

6

Dyferencjacja strategii dezinwestycji funduszy private equity metodą pierwszej oferty publicznej

100%

Sosnowski T., Uniwersytet Łódzki W. E.-S.

Acta Universitatis Lodziensis. Folia Oeconomica

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2013

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vol. 278

EN

The main aim of this paper is an attempt to identify the different strategies of private equity funds divestments carried out through stock exchange. The purpose of this study has been achieved by empirical verification of hypothesis which stipulates that the private equity funds implement heterogeneous strategies of divestment by the initial public offering. The research on disinvestment of private equity funds through initial public offering has shown that this method of exit from investment may take a wide range, different dynamics and bring various effects. The empirical studies have been carried out on a group of 26 private equity backed companies in which the divestment process had been carried out by the initial public offering and the first listing on the Warsaw Stock Exchange had taken place between 2002 and 2010.

7

Publiczna oferta akcji jako forma pozyskania kapitału przez przedsiębiorstwo – pozytywne i negatywne aspekty pierwszej oferty publicznej

88%

Michorowski M.

Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie

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2013

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issue 901

97-112

EN

The key decisions made by a managing director should always be based on the analysis of the enterprise’s requirements and financial possibilities. Without this knowledge, some investments could face the serious risk of failure. Many forms of raising capital allow investment aims to be tailored so as to be adequately implemented. Moreover, the selected method should coincide with the company’s economic situation. Thanks to today’s constant development of the capital markets and global free cash flow, the stock exchange has become one of the best alternative ways of raising capital. The paper presents the numerous positive and negative aspects of the IPO with consideration of the cost of raising capital and corporate policy. It is based on data on IPOs from the Warsaw Stock Exchange in the years 2005–2010.

8

Persistence of pre-IPO earnings of new companies from CEE stock markets

88%

Sosnowski T.

Equilibrium. Quarterly Journal of Economics and Economic Policy

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2022

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vol. 17

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issue 2

415-434

EN

Research background: A company?s earnings are one of the main determinants of investment decisions on the stock market. Thus, the reliability of disclosed financial information is crucial for the efficient allocation of capital. Unfortunately, reported earnings are an economic category susceptible to manipulation. This problem grows especially in the case of an initial public offering (IPO), as there is significant information asymmetry. Purpose of the article: The main aim of the paper is to assess the persistence of earnings reported by companies in the IPO process and to empirically identify financial characteristics associated with persistence of earnings. The usefulness of financial information is directly related to the issue of earnings quality. Therefore, this paper contributes to the stream of study on the quality of financial reporting of new stock companies. Methods: I employ a simple single-factor regression model to recognize the earnings persistence in new stock companies. Pre-IPO earnings are the explanatory variable. Then, I use multiple regression analysis to identify factors that influence this metric of reported earnings quality. Findings & value added: Using a sample of companies from stock exchange markets in Central and Eastern Europe (i.e., the Warsaw Stock Exchange, the Bulgarian Stock Exchange, the Bucharest Stock Exchange, the Belgrade Stock Exchange, the Prague Stock Exchange) that went public between 2010 and 2018, I find that, generally, pre-IPO earnings hold higher persistence compared to earnings reported in the year of the IPO. Profitability seems to be a factor that significantly influences this feature. Thus, the results contribute to corporate theory and practice facing insufficient empirical evidence on the issue of sustaining pre-IPO profitability in the long term, additionally putting these concerns in the context of the economic environment of European emerging stock markets.

9

Earnings management and the floatation structure: empirical evidence from Polish IPOs

88%

Sosnowski T.

Equilibrium. Quarterly Journal of Economics and Economic Policy

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2017

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vol. 12

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issue 4

693-709

EN

Research background: Firms use discretionary accounting choices to manage earnings disclosures around the time of certain types of corporate events. The initial public offering particularly provides an opportunity to earnings management because of the significant information asymmetry between investors and issuers at the time of the offering. Purpose of the article: The main aim of the study is to empirically investigate the links between the earnings management and the portions of primary and secondary shares sold in IPO. Methods: In order to investigate whether the earnings management influences the issue of new shares and the sale of secondary shares I use Tobit and logit regressions, where discre-tionary accruals are the proxy for earnings management. Findings & Value added: Using a sample of 221 firms from Warsaw Stock Exchange between 2005 and 2015 I do not find evidence that the increase of pre-IPO discretionary accruals positively affects the sale of primary shares in the IPO, but the analysis has revealed that the deliberate conservative reporting limits the probability of the new shares issuance. In turn, the sale of secondary shares by the original shareholders in IPO is more likely in companies using a conservative earnings management. Furthermore, negative discretionary accruals increase the portion of secondary shares sold in the IPO.

10

Efektywność wykorzystania kapitału własnego w spółkach portfelowych funduszy private equity objętych procesami dezinwestycji metod IPO

88%

Sosnowski T., Uniwersytet Łódzki; Wydział Ekonomiczno-Socjologiczny; Instytut Ekonomik Stosowanych i Informatyki

Acta Universitatis Lodziensis. Folia Oeconomica

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2012

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vol. 272

EN

The main objective of this paper is an attempt to identify changes in the financial condition of private equity backed companies in which the divestment process was carried out by the initial public offering and to examine the level of capital efficiency in this group of firms. The major hypothesis, that return on equity in portfolio companies of private equity funds after lists its securities on a public exchange is sustained decline has been positively verified. Empirical research was realized based on the financial statements of 23 portfolio companies of private equity funds, which primary listing on the Warsaw Stock Exchange was held in 2002–2008.

11

Zabezpieczenie finansowe rezerwami bilansowymi działalności nowych spółek giełdowych

75%

Duraj N., Sosnowski T.

Studia Prawno-Ekonomiczne

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2015

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vol. XCVII

217-237

PL

Zasadniczym celem artykułu jest przedstawienie wyników badań empirycznych nad zabezpieczeniem finansowym rezerwami bilansowymi działalności gospodarczej spółek akcyjnych debiutujących na Giełdzie Papierów Wartościowych w Warszawie. Prace badawcze zorientowane były na uzyskanie odpowiedzi na następujące pytanie badawcze: czy w spółkach debiutujących na GPW w Warszawie ma miejsce zwiększenie poziomu zabezpieczenia finansowego działalności gospodarczej rezerwami bilansowymi po wprowadzeniu ich akcji do publicznego obrotu po raz pierwszy w porównaniu do sytuacji sprzed debiutu giełdowego? Uzyskane rezultaty zostały uzupełnione oceną ogólnej sytuacji finansowej badanych przedsiębiorstw w obszarze rentowności, płynności oraz zadłużenia. Analizy empiryczne przeprowadzono na grupie 204 spółek akcyjnych, których akcje zostały wprowadzone po raz pierwszy do publicznego obrotu na rynku głównym GPW w Warszawie w latach 2005–2012.

EN

The main aim of this article is to present the results of the empirical studies on the financial protection afforded by balance sheet provisions of the new companies on the Warsaw Stock Exchange. The research is devoted to answer the following research question: do the newly listed companies experience an increase in the level of financial protection with balance sheet provisions after the introduction of their shares to public trading for the first time in comparison to the situation before the IPO? This analysis has been supplemented by the assessment of the financial situation of the surveyed enterprises in the area of profitability, liquidity and debt. The empirical studies have been carried out on a sample of 204 companies whose shares were introduced to public trading on the main market of the WSE for the first time between 2005 and 2012.

12

Ekonomiczne aspekty wejścia klubów piłkarskich na giełdę

63%

Wyszyński A.

Gospodarka Narodowa. The Polish Journal of Economics

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2013

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vol. 264

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issue 5-6

123-151

EN

The article discusses issues related to initial price offerings (IPO) involving sports clubs. The author examines the case of Poland’s Ruch Chorzów top-division soccer club, which entered the Warsaw Stock Exchange’s NewConnect alternative market Dec. 4, 2008. Based on a review of available literature, Wyszyński looks at the potential advantages and disadvantages of an IPO for a sports club as well as the responsibilities involved. Additionally, the author analyzes the economic, financial and sports implications of Ruch Chorzów’s decision to be listed on the stock exchange in two periods: before the IPO (2005-2007) and after the IPO (2008-2010). The analysis shows that the main benefit of the IPO for the club was that it gained access to a new source of funds, the author says. The IPO was preceded by a private placement of some of the company’s shares (G, H, I, J and K series) from 2008 to 2011. The IPO resulted in an increase in the share capital and improved the club’s financial condition as well as its sports performance. The increased share capital helped reduce financial risk and improve financial liquidity in comparison to other Ekstraklasa top-division clubs, according to Wyszyński. After the IPO, the club achieved its best sports results in the 2009/2010 and 2011/2012 campaigns, finishing 3rd and 2nd in the Ekstraklasa league respectively, the author says.

PL

Celem artykułu jest przedstawienie problematyki związanej z wejściem klubów sportowych na rynek giełdowy na przykładzie Spółki Akcyjnej Ruch Chorzów S.A., która 4 grudnia 2008 r. zadebiutowała na rynku NewConnect, prowadzonym jako alternatywny system obrotu przez Giełdę Papierów Wartościowych w Warszawie S.A. W tym celu, z jednej strony, na podstawie przeglądu literatury przedmiotu, pokazano zalety i wady, jak też obowiązki oraz potencjalne zagrożenia dla organizacji sportowej, wynikające z wejścia jej na parkiet giełdowy. Z drugiej, przeprowadzono analizę wyników ekonomiczno-finansowych i sportowych przed wejściem i po wejściu na rynek NewConnect w Warszawie. Pierwszy okres analizy obejmował lata 2005-2007 (przed wprowadzeniem akcji), drugi od 2008 do 2010 r. (po debiucie ma rynku NewConnect). Na podstawie przeprowadzonej analizy stwierdzono, że do najważniejszych zalet dla klubu wynikających z wejścia na rynek NewConnect był dostęp do nowego źródła kapitału. Badana spółka w latach 2008-2011 r. przeprowadziła emisje akcji (oferta prywatna) serii G, H, I, J i K, które następnie wprowadziła do obrotu giełdowego. Zwiększenie kapitału zakładowego wpłynęło na poprawę zarówno kondycji finansowej, jak też wyników sportowych po debiucie na rynku kapitałowym. Stałe podnoszenie kapitału akcyjnego wywarło wpływ z jednej strony na zmniejszenie ryzyka finansowego (wzrost kapitału własnego w strukturze kapitałowej), a z drugiej na poprawę płynności finansowej w porównaniu do innych klubów Ekstraklasy. Po debiucie giełdowym najlepsze wyniki sportowe Ruch osiągnął w sezonie 2009/2010 i 2011/2012 zdobywając kolejno 3 i 2 miejsce w rozgrywkach ligowych.

13

Explanatory Theories of Stock Returns in the Long Run after IPO - Literature Review

63%

Żyła M.

Nauki o Finansach

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2022

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vol. 27

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issue 2

95-105

PL

Ujemne stopy zwrotu z akcji w długim okresie po pierwszych ofertach publicznych zostały potwierdzone na wielu rynkach, jednak wyjaśnienie przyczyny tego zjawiska jest niejednoznaczne. Badanie niedowartościowania jest istotne, ponieważ pozwala to lepiej zrozumieć rolę rynków akcji w systemie finansowym. Taka anomalia rynkowa wpływa na zachowanie inwestorów w dłuższej perspektywie. Niedowartościowanie jest szeroko opisywane w literaturze i zostało potwierdzone w większości przypadków. Nie wiadomo jednak, co wpływa na takie zjawisko na rynkach. Celem artykułu jest przedstawienie teorii wyjaśniających zjawisko, które opierają się na zachowaniach uczestników rynku, oraz podsumowanie zmiennych objaśniających zjawisko niedowartościowania wynikających z teorii.

EN

Negative returns of shares in the long run after initial public oferings have been confirmed on many markets, however the explanation for the cause of this phenomenon is ambiguous. Investigating underperformance is important because it allows for a better understanding of the role of the stock markets in the financial system. Such a market anomaly influences the behaviour of investors in the long run. Underperformance features in an extensive body of empirical literature and has been confirmed in most cases, yet it is inconclusive as to what afects such phenomenona on the markets. The purpose of this paper was to present the explanatory theories based on the behaviour of market participants and to summarise the explanatory variables of underperformance that stem from the theory.

14

Corporate Governance and the Time to Full Exit in the Private Equity Divestment Process on Warsaw Stock Exchange

51%

Sosnowski T.

Acta Universitatis Lodziensis. Folia Oeconomica

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2017

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vol. 2

|

issue 328

PL

W opracowaniu zaprezentowano rezultaty prac badawczych zorientowanych na poszukiwanie i ocenę zależności między przyjęciem określonych rozwiązań w zakresie ładu korporacyjnego w spółkach portfelowych funduszy private equity a czasem upływającym od wprowadzenia akcji spółki do publicznego obrotu po raz pierwszy do realizacji pełnego wyjścia z inwestycji przez fundusz. Wyniki badań wskazują, iż wyższemu udziałowi funduszy private equity w ogólnej liczbie głosów na walnym zgromadzeniu wspólników danej spółki przed przeprowadzeniem pierwszej oferty publicznej towarzyszy wydłużenie czasu realizacji pełnego wyjścia z inwestycji. Ponadto stosowanie konsorcjów inwestycyjnych, jak i wcześniejsze doświadczenie funduszu w realizacji dezinwestycji za pośrednictwem rynku giełdowego mogą być uznane za istotne predyktory hazardu realizacji całkowitego wyjścia z inwestycji. Badania empiryczne objęły 41 spółek portfelowych funduszy private equity, których akcje w procesie dezinwestycji zostały wprowadzone po raz pierwszy do publicznego obrotu na GPW w Warszawie w latach 2005–2015.

EN

This paper investigates empirically the links between the specific solutions of corporate governance in portfolio companies of private equity funds and the duration of divestment process after the first listing of company’s shares on the stock market. Using a sample of 41 IPOs from Warsaw Stock Exchange between 2005 and 2015 I find that the pre‑IPO set up corporate governance significantly affects the time of the private equity funds’ full exits. I find evidence that the higher share of private equity funds in the total number of votes at the general meeting of the company’s shareholders before the IPO negatively impacts the chance of the full exit occurrence. However, the data reveal that the syndication and previous experience of private equity fund in IPO exits are important factors affecting the probability of the investment’s end.

Refine search results

Performance of Polish IPO Firms: Size and Profitability Effect

Motives and Effects of the Initial Public Offerings on the Warsaw Stock Exchange

Earnings management in the private equity divestment process on Warsaw Stock Exchange

A Practical Approach: Value-Maximizing IPO Timing Decision

The credibility of earnings announced by new stock companies: accrual and real earnings management

Dyferencjacja strategii dezinwestycji funduszy private equity metodą pierwszej oferty publicznej

Publiczna oferta akcji jako forma pozyskania kapitału przez przedsiębiorstwo – pozytywne i negatywne aspekty pierwszej oferty publicznej

Persistence of pre-IPO earnings of new companies from CEE stock markets

Earnings management and the floatation structure: empirical evidence from Polish IPOs

Efektywność wykorzystania kapitału własnego w spółkach portfelowych funduszy private equity objętych procesami dezinwestycji metod IPO

Zabezpieczenie finansowe rezerwami bilansowymi działalności nowych spółek giełdowych

Ekonomiczne aspekty wejścia klubów piłkarskich na giełdę

Explanatory Theories of Stock Returns in the Long Run after IPO - Literature Review

Corporate Governance and the Time to Full Exit in the Private Equity Divestment Process on Warsaw Stock Exchange