IPO Strategy - Specific Approaches in the CEE Region

kniha odborná

angličtina

This monograph presents the main results of the research project IPO Strategy - Specific Approaches in the CEE Region. The first chapter deals with recent primary stock market developments in Central and Eastern Europe and aims to indicate the influence of capital market determinants on numbers of IPOs in Poland, Czech Republic, Hungary, Slovakia, Slovenia and Austria over the period of 2000 to 2012. Descriptive statistics are used to analyse capital market and IPO developments . The results of our analysis can be summarized as follows. All CEE capital markets recorded a strong dynamism over the observed period. All fundamental capital market parameters increased the attractiveness of individual capital markets, although their values are behind developed European capital countries. Our assumption that a growing and more liquid market has a positive impact on IPO activities could not be supported by empirical evidence. In the second chapter we investigate the influence of macroeconomic factors on the number of IPOs in the Polish capital market over the period of 2004 to 2012. Our sample includes 218 local enterprises that conducted an IPO on the Main Market of the Warsaw Stock Exchange. The model estimation was performed with the Ordinary Least Squares method. The main conclusion of our model is that the GDP growth and annual stock index returns have a significant impact on the number of new issues. The model could confirm that other macroeconomic factors have had no explanatory power for IPO numbers in Poland in the observed period. The third chapter examines internal determinants influencing the decision to go public or to stay private by Polish enterprises divided into two groups. The first group consists of entities that have previously executed an initial public offering; the second one includes entities that are IPO candidates. The questionnaire-collected data was treated by statistical methods reflecting its nature and quantity. Firstly, raising external capital as a reason for an IPO received a strong support from the respondents of both groups of companies. Next, more than 50% in each group of respondents believe that the IPO will have a positive effect on its image and publicity. The ability to trade shares on the capital market is perceived as a sign of competent company management. Most of the respondents also believe that an IPO will improve the company valuation, strengthen the management's bargaining position in negotiations with providers of external capital, and increase the attractiveness of the company as an employer. Thirdly, the respondents do not see debt reduction as a reason to go public. Fourth, the deliberation to undertake an IPO is very sensitive to the question of time, costs and reporting duties in companies with successful IPO status. Fifth, the not tried companies place a big emphasis on the limitation or loss of decision-making control. CFOs from this group of companies also possess a very strong feeling regarding the fear of IPO failure. Similar to successful companies, the respondents concern very strongly with market and industry conditions affecting the success of going public. Last, in choosing an opportune time for an IPO, both subsamples of companies take into considerations the current need of external equity capital for development projects. Managers also take advantage of macroeconomic development and effort conducting IPOs when present and projected state of the national and global economy is favourable. The results of this survey made it possible to formulate new insights as contributions towards a better understanding of corporate financing strategies, particularly under the specific conditions of the CEE region.

IPO, Initial Public Offering, Central and Eastern Europe, CEE, Capital Market

MELUZÍN, T.; ZINECKER, M.; ŠKAPA, S.

2015

17. 4. 2015

VUTIUM

Brno

978-80-214-5113-1

odborná kniha

1

1

100

100