Firm Size and Age mediating the Firm Survival-Hedging Effect: Hayes’ 3-Way Parallel Approach

Okwo, Henry; Ezenwakwelu, Charity A.; Igwe, Anthony; Imhanrenialena, Benedict

doi:10.3390/su11030887

Cited by 10 publications

(6 citation statements)

References 101 publications

(145 reference statements)

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“…Accordingly, when we predict the IPO survival of a one listing market, then there will be no involvement of the exposure variable. Besides, this study incorporates control variables used by previous studies such as firm age at the listing date [10,16,68], financial leverage to control financial risk [1,16], and trailing earnings per share (EPS) to control profitability. Unlike previous studies [17,23,29] that use return on assets (ROA) as a proxy for profitability, we use earnings per share (EPS) because the prospective investors focus on trailing EPS for valuing the stock price.…”

Section: Model and Variable Descriptionmentioning

confidence: 99%

Predictive Role of Ex Ante Strategic Firm Characteristics for Sustainable Initial Public Offering (IPO) Survival

2021

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This study attempts to predict how long a newly listed corporation, usually termed initial public offering (IPO), will survive on the equity listing market. The three-fold contribution of this study comprises a hand-collected and substantially expanded dataset for listed IPOs (1990–2017) over a maximum tracking period of 31 years (1990–2020) to predict the IPO survival on emerging Malaysian capital market, the rationale and consequences for unifying the two listing boards (Main Board and Second Board) in 2009, and an investigation of the predictive role of ex ante strategic prospectus information as early warning signals for sustainable survival of Malaysian IPOs. We also make comparisons for the survival profile of IPOs listed on different listing equity boards. We use Cox proportional hazard (PH) model to estimate the empirical results because of the cohort research design of the study. Overall empirical results show that survival curves for IPOs listed on Main Board and Second Board were not statistically different. However, Second Board IPOs remained more vulnerable to hazard. The survival curves for IPOs listed on Main Market and ACE Market are statistically different. Empirical results reveal that high share premium, high listed capital, and longer firm age at listing date significantly increase the survival (reduce hazard) of IPOs listed on the Main Market and the Second Board. However, bigger firm size and elevated risk factors significantly reduce the survival (increase hazard) of the listed IPOs mentioned above. However, share premium is the only variable that has a negative and significant correlation with IPO survival on ACE Market. These results have implications for the regulators, prospective investors, and policymakers of emerging markets, where the IPO prospectus disclosures bridge the information asymmetry gap prevailing due to the nonexistence of public information prior to the IPO. Empirical findings of this study can be generalized to other developing and emerging markets where IPO prospectus substantially mitigates information asymmetry and ex ante strategic firm characteristics act as early warning signals in predicting IPO survival.

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Section: Model and Variable Descriptionmentioning

confidence: 99%

Predictive Role of Ex Ante Strategic Firm Characteristics for Sustainable Initial Public Offering (IPO) Survival

2021

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“…However, we did not find any support of the mediating roles of evaluation and judgment on the PRM-EI relationship. This finding could be attributed to the peculiarity of our clime of study, in which businesses face long-term survival issues (Okwo et al, 2019;SMEDAN & NBS, 2017). Having a PRM who lost business would cast doubt in an individual that the identified entrepreneurship opportunity would be sustained in an environment posed with business long-term survival issues (SMEDAN & NBS, 2017).…”

Section: Resultsmentioning

confidence: 96%

“…In line with SCCT, having the opportunity to work in a small or new created firm would provide direct knowledge that would help fresh graduates to perceive entrepreneurship as advantageous or otherwise. Long-term survival issues could deter interest in business amongst fresh graduates in developing economies owing to associated economic, social, and personal costs of business failures (Wyrwich et al, 2015;Eid et al, 2019;Okwo, Ezenwakwelu, Igwe & Imhanrenialena, 2019). However, by working in a small or newly created firm, an individual could acquire the basic skills on how to leverage inherent challenges of business (Cacciotti et al, 2016;Paunescu, Popescu & Duennweber, 2018;Vallaster, Kraus, Lindahl & Niielsen, 2019) to ones' advantage.…”

Section: Hypotheses Development: Prior Entrepreneurial Exposure and Entrepreneurial Intention (Pee And Ei)mentioning

confidence: 99%

Mediating role of entrepreneurial alertness between prior entrepreneurial exposures and entrepreneurial intentions

Edigbo¹,

Ogbo²,

Onwe³

et al. 2021

EBER

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The objective of the study is to ascertain the mediating role of entrepreneurial alertness (EA) on the prior entrepreneurial exposures (PEE) and entrepreneurial intentions (EI) relationship of fresh graduates in Nigeria. Research Design & Methods:We conducted a survey on fresh graduates in Nigeria (n = 387). The data gathered were analysed using Hayes' simultaneous entry on SPSS 23.0 and PROCESS 3. Findings: We found that PEE leads to an entrepreneurship career intention. We concluded that EA improves the PEE-EI relationship amongst fresh graduates in an emerging economy. Implications & Recommendations:The theory of EA is a good predictor of EI and a good mediator in the PEE-EI relationships, therefore further studies should consider EI models, especially those that involve EA and fresh graduates instead of students. Contribution & Value Added:We advance the understanding of PEE-EI relationship by utilizing the EA theory as a mediator while also testing this on a fresh graduate population in an emerging economy. Article type:research article

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“…Growth is treated as a vital element for firms to maintain their existence (Geroski, 1995;Okwo, Ezenwakwelu, Igwe, & Imhanrenialena, 2019;Sutton, 1997). The basic variables of growth were investigated in many studies within the literature (Agarwal & Audretsch, 2001;Baldwin & Rafiquzzaman, 1995;Boeri & Cramer, 1992;Davidsson & Delmar, 1997;Joseph & Wilson, 2018;Jovanovic, 1982;Lucas, 1978).…”

Section: Resultsmentioning

confidence: 99%

Sources That Managers Prefer for Business Information Needs

Baskıcı

2019

Mehmet Akif Ersoy Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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This study aims to reveal how business managers associate their information needs and the information sources to meet these needs. In order to answer this question, face-to-face interviews were carried out with a total of 327 business managers working in various sectors. Information sources are encoded by using content analysis with personal and non-personal, internal and external dimensions. Results obtained have shown that managers mainly prefer non-personal information sources. Accordingly, business managers who face problems of sustainability and competitiveness seek personal and internal information while those who face problems of growth and innovation seek non-personal and external information. As for the problem profitability, managers refer to non-personal and internal information. The findings aim to contribute to strategic management and environmental scanning literature as well as to implementers. The research results might be guiding for identifying the information needs of managers in a more focused way and meeting this need more efficiently.

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Firm Size and Age mediating the Firm Survival-Hedging Effect: Hayes’ 3-Way Parallel Approach

Cited by 10 publications

References 101 publications

Predictive Role of Ex Ante Strategic Firm Characteristics for Sustainable Initial Public Offering (IPO) Survival

Predictive Role of Ex Ante Strategic Firm Characteristics for Sustainable Initial Public Offering (IPO) Survival

Mediating role of entrepreneurial alertness between prior entrepreneurial exposures and entrepreneurial intentions

Sources That Managers Prefer for Business Information Needs

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