Firm location effect on underwriting, subscription, and underpricing: Evidence from IPOs in China

Liu, Lewis; Neupane, Suman; Zhang, Lei

doi:10.1016/j.econmod.2022.105778

Cited by 7 publications

(2 citation statements)

References 52 publications

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“…The underwriting process's critical role in managing risks and ensuring the company's financial stability is reflected in the positive impact on profitability. These results align with earlier research conducted by Fikri (2009), Liu et al (2022), andSastri et al (2017).…”

Section: Effect Of Underwriting Results On Profitabilitysupporting

confidence: 93%

“…These findings are consistent with previous research conducted by Fikri (2009), Liu et al (2022), andSastri et al (2017), which also support the idea that underwriting results have a significant positive effect on the profitability of joint venture general insurance companies. The underwriting process assesses and classify the level of risk associated with potential insured individuals or groups, ultimately safeguarding insurance companies from potential losses.…”

Section: Effect Of Underwriting Results On Profitabilitysupporting

confidence: 93%

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The effect of premium income, expenses claim, and underwriting on profitability of Indonesia joint enterprises insurance companies

Markonah,

Riwayati,

Kumalasari

2023

JSB

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Purpose – This research has purposes to scrutinize over the role of premium income, expenses claim and underwriting results towards profitability of Indonesia Joint Enterprises Insurance Companies. Design/methodology/approach – The sample used is general insurance company that presents complete financial statements during 2018-2021 and listed by Otoritas Jasa Keuangan through its official website. Purposive sampling used as sampling technique with several samples are 48 data. Panel data regression used as analysis technique which then processed by Eviews-9 application. Findings – Its results showed that only underwriting results which significantly affect on profitability, while the others variables such as premium income had significantly negative affect on profitability so did with the expense claims which turn out had no affect towards profitability. At the level of significance (α = 0.05), it has small effect, while at the significance level of (α = 0.10), the expense claims seem had significant negative affect on profitability of Indonesia general insurance industry. Research limitations/implications – This research has certainly limitations such as the research object used relatively small only the joint general insurance companies which submitted complete financial reports which are listed by Otoritas Jasa Keuangan and followed by the company’s official website. Practical implications – This research indicates that those companies are noticed about an increase in premiums, but on the other hand they have also received many claims, therefore those premiums will be diverted to finance the claims which occur lately, then this certainly would decrease an income or profitability of the insurance company itself. Originality/value – This research also has a different research object and research period compared to previous research, therefore it can be used as a complement the research which have done before.

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Section: Effect Of Underwriting Results On Profitabilitysupporting

confidence: 93%

Section: Effect Of Underwriting Results On Profitabilitysupporting

confidence: 93%

The effect of premium income, expenses claim, and underwriting on profitability of Indonesia joint enterprises insurance companies

Markonah,

Riwayati,

Kumalasari

2023

JSB

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External Governance Oversight and the IPO Process: Empirical Evidence from China

Liu

2024

Asia-Pac Financ Markets

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This study examines the effects of political affiliations as an external governance element on various aspects of the IPO procedure in China. Within China, the significance of political connections is widely recognized as a notable external governance factor capable of exerting influence over both the IPO process. Utilizing a distinctive dataset comprising IPO information from 1856 firms in China spanning the period between 2014 and 2021, the primary objective of this research is to demonstrate that companies with political affiliations have a higher probability of experiencing underpricing, coupled with an increased likelihood of attracting investments from retail investors. Furthermore, these firms tend to attract prestigious underwriters and more underwriter subscriptions, despite having to pay higher floating costs and underwriting fees. Lastly, the study demonstrates that political connections are especially beneficial for firms during market uncertainty, such as the recent pandemic. Political connections act as monitors, reducing information asymmetry and signaling positive aspects of the firms to investors. To strengthen the main conclusions, the study conducts various robustness tests, including PSM and subsample analysis. Overall, the research adds to the existing literature on the crucial role of political connections in promoting IPO practices and reducing information asymmetry through monitoring and support.

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Sustainability reporting and corporate reputation of Malaysian IPO companies

Abbas¹,

Mehmood

Lazim³

et al. 2022

Environ Sci Pollut Res

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Firm location effect on underwriting, subscription, and underpricing: Evidence from IPOs in China

Cited by 7 publications

References 52 publications

The effect of premium income, expenses claim, and underwriting on profitability of Indonesia joint enterprises insurance companies

The effect of premium income, expenses claim, and underwriting on profitability of Indonesia joint enterprises insurance companies

External Governance Oversight and the IPO Process: Empirical Evidence from China

Sustainability reporting and corporate reputation of Malaysian IPO companies

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