Auctioned IPOs: The U.S. Evidence

F. Degeorge, F. DERRIEN, K. Womack

Journal of Financial Economics

novembre 2010, vol. 98, n°2, pp.177-194

Départements : Finance, GREGHEC (CNRS)

Mots clés : Initial public offerings, Investment banking, Auctions

accepté le 29 juillet 2009Between 1999 and 2007, WR Hambrecht completed 19 initial public offerings (IPOs) in the US using an auction mechanism. We analyze investor behavior and mechanism performance in these auctioned IPOs using detailed bidding data. The existence of some bids posted at high prices suggests that some investors (mostly retail) try to free-ride on the mechanism. But institutional demand in these auctions is very elastic, suggesting that institutional investors reveal information in the bidding process. Investor participation is largely predictable based on deal size, and demand is dominated by institutions. Flipping is at most as prevalent in auctions as in bookbuilt deals. But, unlike in bookbuilding, investors in auctions do not flip their shares more in 'hot' deals. Finally, we find that institutional investors, who provide more information, are rewarded by obtaining a larger share of the deals that have higher ten-day underpricing. Our results therefore suggest that auctioned IPOs can be an effective alternative to traditional bookbuilding.Keywords: Initial public offerings; Investment banking; Auctions

Awareness Dynamics


Journal of Philosophical Logics

avril 2010, vol. 39, n°2, pp.113-137

Départements : Economie et Sciences de la décision, GREGHEC (CNRS)

In recent years, much work has been dedicated by logicians, computer scientists and economists to understanding awareness, as its importance for human behaviour becomes evident. Although several logics of awareness have been proposed, little attention has been explicitly dedicated to change in awareness. However, one of the most crucial aspects of awareness is the changes it undergoes, which have countless important consequences for knowledge and action. The aim of this paper is to propose a formal model of awareness change, and to derive from it logics of awareness change. In the first part of the paper, the model of epistemic states of bounded agents proposed in Hill (Stud Log 89(1):81'109, 2008a) is extended with operations modelling awareness change. In the second part of the paper, it is shown how this model naturally extends the 'standard' logic of awareness to yield a logic of awareness change. Keywords Awareness - Knowledge - Logic of awareness - Awareness change - Belief revision - AGM belief revision - Dynamic epistemic logic

Betting on Machina's reflection example: an experiment on ambiguity

O. L'HARIDON, L. Placido

Theory and Decision

septembre 2010, vol. 69, n°3, pp.375-393

Départements : GREGHEC (CNRS)

In a recent article, Machina (Am Econ Rev forthcoming, 2008) suggested choice problems in the spirit of Ellsberg (Q J Econ 75:643-669, 1961), which challenge tail-separability, an implication of Choquet expected utility (CEU), to a similar extent as the Ellsberg paradox challenged the sure-thing principle implied by subjective expected utility (SEU). We have tested choice behavior for bets on one of Machina's choice problems, the reflection example. Our results indicate that tail-separability is violated by a large majority of subjects (over 70% of the sample). These empirical findings complement the theoretical analysis of Machina (Am Econ Rev forthcoming, 2008) and, together, they confirm the need for new approaches in the analysis of ambiguity for decision makingAuthor Keywords: Ambiguity; Choquet expected utility; Experimental economics

Beyond Brands: Happy Adolescents See the Good in People


Journal of Positive Psychology

2010, vol. 5, n°5, pp.342-354

Départements : Marketing, GREGHEC (CNRS)

Bioenergy options in the industrialized and developing world and opportunities for the Clean Development Mechanism


International Journal of Green Energy

2010, vol. 7, n°6, pp.647-661

Départements : Stratégie et Politique d’Entreprise

Mots clés : Sustainable development, Bioenergy, Gasification, Biofuels, Clean deevelopment mechanism (CDM)

Bioenergy is considered an option of significant potential for both industrialized and developing countries and its exploitation can strive toward more sustainable energy systems. In this framework, the main scope of this paper is an analysis of three bioenergy options, namely biomass combustion, biomass gasification, and production of biofuels for the transport sector, in terms of their status, benefits, and possible barriers, as well as their future potential. Special attention is given to the perspectives for deployment in the developing world in the context of emerging opportunities provided by the clean development mechanism for sustainable technology transfer

Buffer and Server Allocation in General Multi-Server Queueing Networks

T. Van Woensel, R. Andriansyah, F. R. B. Cruz, J. MacGregor Smith, L. KERBACHE

International Transactions in Operational Research

mars 2010, vol. 17, n°2, pp.257-286

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

This paper deals with the joint optimization of the number of buffers and servers, an important issue since buffers and servers represent a significant amount of investment for many companies. The joint buffer and server optimization problem (BCAP) is a non-linear optimization problem with integer decision variables. The performance of the BCAP is evaluated by a combination of a two-moment approximation (developed for the performance analysis of finite general-service queues) and the generalized expansion method (a well-known method for performance analysis of acyclic networks of finite queues). A standard non-linear optimization package is used to optimize the BCAP for a large number of experiments. A comprehensive set of numerical results is presented. The results show that the methodology is capable of handling the trade-off between the number of servers and buffers, yielding better throughputs than previously published studies. Also, the importance of the squared coefficient of variation of the service time is stressed, since it strongly influences the approximate optimal allocation.general servicejoint buffer and server allocationnetworksqueues

Building Social Business Models: Lessons from the Grameen Experience


Long Range Planning

avril-juin 2010, vol. 43, n°2-3, pp.308-325

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Grameen bank, founded in 1976, has both pioneered the development of micro-finance, and created nearly 30 businesses designed to alleviate poverty. The article traces the gradual development of Grameen's expertise in formulating social business models, which require new value propositions, value constellations and profit equations, and as such, resembles business model innovation. The article presents five lessons learned from this experience: three are similar to those of conventional business model innovation e challenging conventional thinking, finding complementary partners and undertaking continuous experimentation; two are specific to social business models: recruiting social-profit-oriented shareholders, and specifying social profit objectives clearly and early. We suggest these new business models e where stakeholders replace shareholders as the focus of value maximization e could empower capitalism to address overwhelming global concerns.

Capacités d'innovation des entreprises familiales pérennes: Proposition d'un cadre théorique et méthodologique


Revue Française de Gestion

2010, vol. 36, n°200, pp.111-126

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Family-owned business enterprises, Innovations in business, Competitive advantage, Creative ability in business, Industrial management

L'objet de cet article est de mettre en évidence les caractéristiques familiales ayant un impact positif sur le processus d'innovation. Le croisement des variables relatives à l'innovation et celles ayant trait aux entreprises familiales pérennes a permis de dégager un cadre d'analyse et méthodologique des capacités d'innovation des entreprises familiales pérennes innovantes

Capital Structure Decisions: Evidence From Deregulated Industries


Journal of Financial Economics

février 2010, vol. 95, pp.249-274

Départements : Finance, GREGHEC (CNRS)

CEO Ability, Pay, and Firm Performance

C. Y. Y. Chang, G. HILARY, S. Dasgupta

Management Science

octobre 2010, vol. 56, n°10, pp.1633-1652

Départements : Comptabilité et Contrôle de Gestion

accepté le 11/05/2010Do chief executive officers (CEOs) really matter? Do cross-sectional differences in firm performance and CEO pay reflect differences in CEO ability? Examining CEO departures over 1992-2002, we first find that the stock price reaction upon departure is negatively related to the firm's prior performance and to the CEO's prior pay. Second, the CEO's subsequent labor market success is greater if the firm's predeparture performance is better, the prior pay is higher, and the stock market's reaction is more negative. Finally, better prior performance, higher prior pay, and a more negative stock market reaction are associated with worse postdeparture firm performance. Collectively, these results reject the view that differences in firm performance stem entirely from non-CEO factors such as the firms' assets, other employees, or "luck," and that CEO pay is unrelated to the CEO's contribution to firm value.*CHIEF executive officers*EXECUTIVE ability (Management)*EXECUTIVES -- Salaries, etc.*BUSINESS enterprises -- Valuation*STOCKS -- Prices*LABOR market*FINANCIAL market reaction