In the study, we choose the companys that had conducted IPOs or SEOs between 2005 and February 2006 as studying samples. The purpose of the study is to investigate how the issuing firms choose among different underwriting mechanisms and the factors influencing the choice of underwriting mechanisms. Empirical result shows that issuing factors are the important factors that influence the choice of underwriting mechanisms. The firms that conduct IPOs usually trend to choose bookbuilding method, but the firms that conduct SEOs trend to choose fixed price method instead. On the other hand, we also find that issuing scale is another significant factor influencing the choice of underwriting mechanisms and the effect is more apparent on the firms that conduct SEOs. The firms with bigger issuing scale trend to choose bookbuilding method but the firms with smaller issuing scale trend to choose fixed price rather than bookbuilding method.

Thesis (M.S.)--Naval Postgraduate School, 2002. / Thesis advisor(s): E. Cory Yoder, David V. Lamm. Includes bibliographical references (p. 97-100). Also available online.

This research examines the relationship of initial public offer (IPO) underpricing and intrinsic value in the Australian fixed-price setting. The first stage of the research contains a review of major underpricing theories (asymmetric information, institutional explanations and theories of ownership and control) and relates these theories to the Australian institutional setting. A baseline model of underpricing is developed from analysis of Australian empirical IPO literature. The second stage of the research is the disaggregation of underpricing into mispricing (MP) and misvaluation (MV) components. MP captures the extent of the issuer‟s influence on underpricing and is measured as the difference between the intrinsic value of an IPO share and its offer price. MV captures the extent of investors‟ influence on underpricing and is measured as the difference between the intrinsic value of an IPO share and its market price at listing.Mispricing is modelled with issuer-related variables that have hypothesised associations with offer price. Results show a proxy for IPO market sentiment and the size of the IPO relative to industry median market capitalisation make significant contributions to the explanation of mispricing. Misvaluation is modelled with investor characteristics that have hypothesised associations with market price. A proxy for general market sentiment and the level of mispricing make significant contributions to the explanation of misvaluation. The third stage of the research integrates results from the disaggregation of underpricing with the baseline model.Several conclusions can be drawn from the results. First, with respect to mispricing, issuers incorporate their knowledge of current IPO market conditions when establishing offer price, with more positive mispricing observed during hot IPO markets. Further, issuers taking relatively larger companies public tend to overprice their issues. This result persists even after controlling for potential scale effects. Second, with respect to misvaluation, overpriced issues (i.e. positive mispricing) are also overvalued by the market. This result provides an indication that price is not a suitable proxy for value. Third, prior Australian research [Cotter, Goyen & Hegarty (2005) and How, Lam & Yeo (2007)] reports a negative association for mispricing and underpricing. Consistent with US results (Zheng, 2007), no relationship isobserved for this sample. Overall, the results from this research indicate that investor-related factors are the primary drivers of underpricing.This research makes eight major contributions to the body of knowledge. The first is the novel approach of disaggregating underpricing into mispricing and misvaluation components. Second, mispricing is modelled and it is demonstrated that previously hypothesised issuer-related factors do not explain mispricing. Third, misvaluation is modelled, providing some interesting insights into the role of market sentiment in the underpricing context. Fourth, the relationships of mispricing, misvaluation and underpricing are investigated. Fifth, the Australian institutional setting is compared to that of the US and implications for future research are identified. Sixth, the baseline model of underpricing consolidates variables developed from prior Australian literature, providing a yardstick for comparison in future underpricing research. Seventh, evidence shows issuers exploit high market sentiment with positive mispricing in the fixed-price setting. The final major contribution relates to the role of institutional investors in the fixed-price setting. Contributions to the IPO literature on ownership and control, signalling, asymmetric information theories of ex ante uncertainty and agency theory are also made with tests of key variables in the mispricing and misvaluation models. Finally, evidence on the role of institutional investors in the fixed-price setting and on the role of demand (informed and total) sheds light on the underpricing puzzle.

In 1998, the Philippines introduced book-building pricing mechanisms for Initial Public Offerings. Almost all capital raised through IPOs in the Philippines is done using a book-building pricing method, however a significant number of IPOs still occur using non-book-building methods. Understanding why book-building has become the dominant pricing mechanism but yet non-book-building methods still survive is the aim of this paper. I find that unlike other countries where the introduction of book-building leads to higher total issue costs for individual issuers and unlike theory which suggests the increased effort of book-building should come with increased costs, IPOs that use book-built pricing in the Philippines actually have a lower total issue cost as a percentage of the total issue size compared to issuers who use non-book-building methods. This being the case, explaining why non-book-built IPOs still occur is even more interesting. I find that the large variance in size and the low volume of IPOs in the Philippines creates a bifurcated market where it is uneconomical for underwriters to use book-building to service small firms who want to IPO. The harder phenomenon to explain is the choice by firms who are large enough to book-build to use non-book-built methods. I suggest that the developing sophistication of the local market as well as the relationship driven aspect of business in the Philippines are two possible explanations.

A large number of different methods in the field of estimation of IS/IT projects have been developed in past years. Those methods should be used with regard to several factors. The choice and the application of an estimation method should take into consideration the current phase of each project and the wide variety of external factors, whose composition and intensity are very diverse and individual. The accuracy of the estimation considerably influences the success of the whole project. Therefore it is crucial to pay special attention to the mentioned phenomenon. The aim of this diploma thesis is to provide a comprehensive overview of the issue of the estimation of large projects for fixed price. The objective is particularly fulfilled by the provided overview and definitions of the chosen methods, the list of the most common mistakes and the interpretation of the results of an analysis concerning the portfolio of projects that were realised in an international company. The expected outcome of the diploma thesis is represented by the definition of the procedurally correct and comprehensive description of the creation of the price for a project with the fixed extent of work, which can be guaranteed with a reasonable rate of risk by a supplier. Another outcome of the thesis is the interpreted outputs of the analysis concerning the portfolio of projects realised by the international supplier of IS/IT products and services, which can be exploited for more effective estimations and project portfolio management.

Till följd av att större delen av alla nyproducerade bostadsrätter i Stockholms kommun idag säljs till fasta priser är det intressant att undersöka och ta reda på varför inte fler bostadsproducenter använder sig av budgivning som försäljningsstrategi. Hur dessa fasta priser fastställs av bostadsproducenterna och vad som ligger till grund för den bedömningen, är även det en intressant aspekt.  Information som ligger till grund för de teoretiska utgångspunkterna har inhämtats genom en grundlig litteraturstudie. Resultatet bygger på ett par kvalitativa intervjuer för att ta reda på vilka parametrar som spelar in vid val av försäljningsstrategi och prissättning. Urvalet av intervjukandidater har noga övervägts och landade i en aktör som använder sig av ett budgivningsförfarande och en aktör som använder sig av fast pris som försäljningsstrategi, för att på bästa sätt kunna ställa dessa metoder mot varandra.  Analysen visar bland annat att storleken på projektet, vilka finansieringsalternativ som är möjliga, inställningen och egenskaperna hos bostadsproducenterna och hur marknadsläget råder är avgörande för vilken strategi som används. Slutsatsen mynnar ut i att mycket handlar om finansieringsmässig trygghet och att det är en inställningsfråga hos bostadsproducenterna. Det finns därmed goda möjligheter att i större utsträckning använda sig av budgivning som försäljningsstrategi. Alternativt att kombinera de två olika metoderna, budgivning och fast pris, för att på så sätt nå maximal avkastning, vilket borde ligga i bostadsproducentens intresse. / Due to the fact that most new production of condominiums in the municipality of Stockholm today are sold at fixed prices, it is interesting to investigate and find out why not more real estate developers use bidding as a sales strategy. How these fixed prices are determined by the developers and the basis for that assessment. Information that underlies the theoretical starting points has been obtained through a thorough literature study. The result is based on a couple of qualitative interviews to find out which parameters are involved in choosing a specific sales strategy and pricing. The selection of interview candidates has been carefully considered and landed in an actor using a bidding process and an actor using fixed price as a sales strategy. The analysis shows, among other things, that the size of the project, which financing options that are possible, the attitude of condominium developers and how the market situation prevails determines the strategy used. The conclusion is that the attitude among the real estate developers plays a big role, and there are good opportunities to make more use of bidding as a sales strategy. Alternatively, combine the two different methods, bidding and fixed price, in order to achieve maximum return.

The purpose of the study is to analyze the problem of offer pricing and share issuing in the issuer with a dynamic model. The result shows: First, the correlation between discount and the prosperity of the market is not a linear function. Thus, ¡¥the IPO¡¦s timing¡¦ should be the key issue of issuing firm, which can reasonably explain the fluctuations in underpricing over time. Second, we also discover that the relationship between the ownership structure and the prosperity of the market is not a liner function as what Bolton and Thadden (1998) have claimed. Third, the firm with low quality prefers to release issuing shares in IPO when the market is booming. Fourth, the less the IPO discount in traditional industry, the more the share releasing. Finally, the more the phenomena of subscription, the more the investors subscribe blindly and generate an effect of the cascade. One of the contributions in this model comprises the views between the prosperity of the market and IPO discount in the literature to integrate a profound viewpoint by dividing the IPO discount into the offer pricing error and the market pricing error. Another finding is that the offer pricing error will decrease subject to the prosperity of the market. This is consistent with the viewpoint of Chemmanur (1993) that when the market is booming, the issuers can decrease the cost of adverse choice. As for the non-linear relation between the market pricing error and the prosperity of the market is coordinate with what Ma(1999) has claimed that IPO discount is influenced by the offer pricing and the market pricing. Besides, the non-linear relationship between ownership structure and the prosperity of market can reasonably account for the real situation. Besides, the benefit of controlling authority is better than the value of the cash flow of the released shares owing to the depression of the market, even the market is turning booming. Therefore, the issuers will minimize releasing share. However, the issuers will increasing released shares up to the market is keeping booming and the value of the cash flow of the released shares is better than the benefit of controlling authority. An auction model is established to analyze the choice of firms between fixed-price offerings and auctions. Chemmanur and Liu(2003) stated that obtaining the auction information is more advanced; however, the cost is high so that it can not catch enough investors to produce information which does not favor the discovery of the secondary market price. On the contrary, we proclaim that the information transmitting effect produced by auction will be helpful to the discovery of the secondary market price. Thus, a profitable company but suffers from high levels of information asymmetry prior to the IPO might expect the secondly market price to reflect its real value by auction. Moreover, the choice of underwriting mechanisms lies in the prosperity of the market, the reputation of the company and the degree of the releasing shares. The result of the empirical study is consistant with the expectation of our model.

本研究配合台灣制度，以模型推導方式研究IPO承銷機制選擇(競價拍賣與公開申購)之決定因素，並以台灣資料進行實證分析。本文考慮市場因素與投資人意見差異，以發行者之觀點進行分析。模型之預測為，當投資人意見差異程度較大、承銷規模較大、或是市場情況較佳時，發行者會選擇以競價拍賣銷售新股。 實證結果顯示，發行者於選擇承銷機制時，不僅考慮市場因素，亦會參考公司特性與發行特性，此結果與本模型之預測一致。本研究亦發現，台灣之競價拍賣制度，相較於公開申購方式，並無法更有效控制折價程度；如果發行者所選用的承銷方式，不適合市場情況、公司特性或發行特性，將會使公司的IPO承受較多的折價。 / This thesis develops and tests a theoretical rationale on the choice of IPO selling methods, discriminatory auctions versus fixed-price offerings, in Taiwan. We incorporate market conditions and investors’ divergence of opinions into the model from the issuer’s point of view. Our model predicts that when the extent of investors’ divergence of opinions is high, the amount in IPOs is large, or market conditions are hot, issuers will tend to use auctions. Our examination of issuers’ choice of IPO methods on the Taiwan’s IPOs shows that issuers condition the choice of IPO methods not only on prevailing market conditions, but also on firm/IPO characteristics. The results are consistent with our model. Finally, Taiwanese auction does not lead to less under-pricing than the fixed-price offering, but an issuer choosing a selling method with a higher degree of unfitting for firm/IPO characteristics and to market conditions will suffer more under-pricing.

This thesis investigates the development of turnkey offerings. Turnkey offerings is considered a kind of product-oriented Product Service System (PSS) where the customer pays a fixed price for a total solution, in this thesis, maintenance of vessels. Turnkey offerings have received academic attention, mainly aimed towards the construction industry and regarding benefits and disadvantages. Moreover, previous research has identified the need for further investigating the design of business models in terms of personnel capabilities needed to efficiently offer product oriented PSS’s.  Therefore this study aims to investigate these aspects by conducting a single case study on a large maritime manufacturing company. The study involves data collection through semi-structured interviews, as well as secondary sources such as observations made on site and company documents.  The thesis brings important managerial implications regarding the development of turnkey offerings. These include having an holistic perspective of the offering, since it allows for stronger customer relationships which allows the organization to develop more advanced customized services in the future. Further, this study confirms previous research on the importance of experimentation when innovating business models. Additionally, the triple-bottom-line sustainability aspects are discussed in relation to the offering where it is found that positive improvements can be made towards all three aspects. / Denna uppsats undersöker utvecklingen av turnkey erbjudanden. Turnkey erbjudanden betraktas som en sorts produktorienterat Produkt- Tjänstesystem (PSS) där kunden betalar ett fast pris för en total lösning, i detta fall underhåll av fartyg. Turnkey erbjudanden har fått akademisk uppmärksamhet, främst inom byggindustrin och gällande fördelar och nackdelar. Dessutom har tidigare forskning identifierat behovet av att ytterligare undersöka utformningen av affärsmodeller med avseende på personalens förmågor som krävs för att effektivt erbjuda produktorienterade PSS.  Därför syftar denna studie till att undersöka dessa aspekter genom att genomföra en enskild fallstudie på ett stort tillverkande företag inom marinindustrin. Studien omfattar insamling av data genom semistrukturerade intervjuer samt sekundära källor som observationer på plats och företagsdokument.  Uppsatsen ger viktiga ledningsmässiga implikationer när det gäller utvecklingen av turnkey erbjudanden. Dessa inkluderar att ha ett holistiskt perspektiv på erbjudandet, eftersom det möjliggör starkare kundrelationer, vilket i sin tur gör det möjligt för organisationen att utveckla mer avancerade skräddarsydda tjänster i framtiden. Vidare bekräftar denna studie tidigare forskning om vikten av experimentering vid innovation av affärsmodeller. Dessutom diskuteras hållbarhetsaspekterna för triple- bottom-line i relation till erbjudandet, där det konstateras att positiva förbättringar kan göras inom alla tre aspekter.

In the construction industry, there are various methods for how the client and contractor should work together. Historically, most contracts have been awarded through traditional cooperation, resulting in limited collaboration between the contractor and the client. In recent times, partnering has become increasingly common, based on close collaboration between the client and the contractor. As partnering has gained popularity, the profitability of different collaboration forms has come under scrutiny, as well as which collaboration form contributes to the highest quality of the final product and the lowest cost for the client. The purpose of this work is to examine how incentives and competition will affect the different parties’ approach to risk management within the different collaboration forms. This will be done through three different methods: a literature study, a case study, and interviews, clearly demonstrating how risk management varies depending on the collaboration form applied in the project. The literature study forms the basis for the analysis of the case study and the formulation of the questions asked in the interviews. The case study compares the risk and opportunity assessments of two ongoing construction projects, one using traditional cooperation and the other using partnering. The interview study is based on seven interviews with relevant respondents, each offering their perspective on the collaboration forms. The work shows that incentives and competition will influence the parties eagerness to work with risk management to the extent that it is profitable. Since many partnering agreements have somewhat loose reins, it means that the client must take on greater responsibility for a partnering project to become profitable. The work also highlights that competition will have a significant impact on the contractor's risk allocations depending on the collaboration form applied in the project.