D. Schiereck

Knowing me, knowing you:: Trader anonymity and informed trading in parallel markets☆

Abstract In this paper we empirically analyze whether the degree of trader anonymity is related to the probability of information-based trading. We use data from the German stock market where non-anonymous traditional floor based exchanges co-exist with an anonymous computerized trading system. We use an extended version of the Easley et al. (J. Finance 51 (1996) 1405) model that allows for simultaneous estimation for two parallel markets. We find that the probability of informed trading is significantly lower in the floor based trading system. We further document that the size of the spread and the adverse selection component are positively related to the estimated probabilities of information-based trading.

Long-Run IPO Performance Analysis of German and Spanish Family-Owned Businesses

This article examines the long-run stock market performance of German and Spanish initial public offerings (IPOs) between 1990 and 2000. We distinguish between family-and nonfamily-owned business IPOs by using the power subscale of the F-PEC. Buy-and-hold-abnormal returns (BHAR) are calculated in order to determine abnormal returns. Our results show that three years after going public, investors, on average, realized an abnormal return of −32.8% for German and −36.7% for Spanish IPOs. In both countries, nonfamily business IPOs perform insignificantly better. Regression analyses show that for the whole sample there is a positive company size effect. In family-owned businesses, strong family involvement has a positive impact on the long-run stock market performance, whereas the age of the firm has a negative influence.

Underpricing of European property companies and the IPO cycle: a note

Purpose – The purpose of this paper is to provide evidence for the ongoing significant underpricing of European property IPOs.Design/methodology/approach – The paper provides recent evidence on underpricing for a comprehensive data set of 105 IPOs of European property companies. It starts with an overview of evidence and explanations for the underpricing of property IPOs and evidence for the cyclical nature of IPO activity. It then goes on to describe the methodology and data collection process. The results on initial returns are summarised.Findings – The paper finds that the current IPO market for property shares has been shown to be hot according to common definitions. Additionally, it is safe to say that the hot property securities market has caused to some extent a hot IPO market with property indices averaging 10.69 per cent during the 100 days prior to the IPO compared to 4.65 per cent for the general equity market indices. However, the recovery in Western European property markets and lack of quali...

Wie werden Kreditsicherheiten in der Praxis eingesetzt? - Ein Überblick über empirische Befunde

Der Beitrag gibt einen berblick ber den aktuellen Stand der empirischen Forschung zur Kreditbesicherung. Demnach werden umso eher Kreditsicherheiten gestellt, (a) je j nger und je kleiner das Kredit nachfragende Unternehmen ist, (b) je l nger die Kreditlaufzeit und je h her der Kreditbetrag sind, (c) je geringer der Wettbewerb am Bankenmarkt und je schlechter die gesamtwirtschaftliche Lage ist. Mehrere Studien zeigen, dass besicherte Kredite h here Zinss tze aufweisen. Hausbanken scheinen mehr Sicherheiten zu halten als andere Kreditgeber. Es werden offenbar deutlich h ufiger Sicherheiten aus dem Unternehmensals aus dem Privatverm gen gestellt. Noch nicht hinreichend gekl rt ist, ob eine substitutive oder komplement re Beziehung zwischen Sicherheiten aus dem Unternehmensverm gen oder anderem Verm gen besteht, z. B. aus dem Privatverm gen. Insgesamt st tzen die empirischen Ergebnisse nicht die These, dass Kreditsicherheiten dazu dienen, besser zwischen „guten“ und „schlechten“ Kreditnehmern unterscheiden zu k nnen (Sortierungsoder Selbstselektionsfunktion). Teilweise gest tzt wird die These, dass Sicherheiten die Anreize des Schuldners zur Bedienung des Kredits verbessern. Das l sst allerdings eher Sicherheiten aus dem Privatverm gen erwarten. Am ehesten l sst sich noch die These vertreten, dass Gl ubiger Sicherheiten aus dem Unternehmensverm gen bestellen, wenn sie Interessenkonflikte mit anderen Kreditgebern bef rchten.

Cross-Border Acquisitions and Shareholder Wealth: Evidence from the Energy and Industry in Central and Eastern Europe*

We look at the wealth generated for shareholders of energy assets in Central and Eastern Europe (CEE) by the announcement of cross-border mergers or acquisitions involving a bidder from a Western industrialized country between 1995 and 2005. The impact on both the performance improvements at the firm level as well as on an industry and economic level of foreign ownership of the energy assets in CEE are discussed. The main driver behind the positive effect is the industrial relatedness in acquiring CEE energy assets, while bidder experience and the relative size of the acquired stake do not impact the results significantly.

Determinants of Merger & Acquisition success in global logistics

The logistics industry has experienced a strong consolidation since the early 1990s. In this paper, the value implication of 200 logistics mergers and acquisitions (M&A) that have taken place between 1991 and 2006 is analysed by applying event study methodology. The impacts on acquirers, targets, and combined entities are examined and it is determined that significant positive abnormal returns can be realised. By assessing subsamples according to transactionbased success factors, it has been identified that operationally focusing transactions within the same product market are more successful than those that follow a diversification strategy. Crossborder mergers outperform national mergers within the same regional market. Transactions with a large volume are more successful than small ones.

Market valuation of real estate finance mergers: a note

Purpose – Real estate finance institutions as well as the mortgage banking landscape have undergone a profound restructuring since the late 1980s. This study seeks to examine the value implications of 69 domestic and cross‐border merger and acquisition (M&A) deals of exchange‐listed real estate finance institutions.Design/methodology/approach – To identify relevant M&A transactions between 1995 and 2002 the following data sources are used: Thomson Financial SDC (Securities Data Company – Mergers and Acquisitions Database), Bloomberg, and Computasoft M&A Data. To assess the value implications of M&A standard event study methodology is used, which relies on the market adjusted model and the market model. Cumulated abnormal returns stemming from the market model and the market adjusted model are calculated for four different event windows.Findings – The results document that shareholders of targets earn, at least in the closest analyzed interval, significant positive abnormal returns. There are no significan...

Electric energy storages – a method for specification, design and assessment

The energy transition towards a significantly increased use of renewable energies is confronted with numerous challenges. These include the development of efficient energy storage systems, which need to address the specific requirements of the application area. The present paper contributes to this debate with the specification, design and assessment-method (SDA-method). Based on a statistical analysis of the applications load profile, the specifications for the energy storage system are defined and the design process is conducted. This is demonstrated using the example of a kinetic energy storage system. The following assessment considers the energetic behaviour, life cycle costs as well as environmental impacts. In order to fully exploit the comprehensive methodology, in-depth information is required. This relates firstly to the economical use of storages. Secondly, the multidimensional assessment is subject to many uncertainties. Our methodology reveals existing information gaps and helps to identify future research objectives.

M&A success of German acquisitions in the US-evidence from capital market and survey data

This article examines the value creation of 78 German acquisitions in the US during the period 1990 to 2004. The observed Cumulative Abnormal Returns (CARs) confirm the previous finding that cross-border Mergers and Acquisitions (M&A) activity yields on average wealth gains for shareholders of the acquiring companies. No evidence of a negative cross-border wealth effect could be ascertained, thereby indicating a high international integration of the German capital market. The positive capital market perception of German M&A activities in the US is mainly driven by the acquisition of private targets and equity-settled transactions. The market reactions yield overall congruent results to the responses from surveyed executives of German acquirers. However, bidders’ self assessment of US acquisitions is more positive than the capital market valuation, which substantiates manager overconfidence.

Mergers and Acquisitions in the Software Industry Research - Results in the Area of Success Determinants

This paper analyzes approaches investigating success drivers of mergers and acquisitions (M&A) in the software industry. The literature review covers a classification of research papers in the generic and software industry specific M&A research discipline. The results accentuate that the impact of success factors depends on the research context and that many factors have not been examined so far with respect to the software industry. Building on these insights, the resulting areas for research are pointed out. The investigation of software industry specific factors, in particular, promises to contribute to the analysis of variance in M&A performance.