This thesis examines the impact of lockup length on three important issues related to initial public offerings (IPOs) on Main Market of London Stock Exchange (LSE). First, we investigate the effect of lockup length on the survival of IPOs following five years after the issue. Our results show that IPOs with longer lockups have higher survival rates and longer survival time compared to IPOs with shorter lockups. Comparing the reasons of delisting from market, we find that IPOs with longer lockups are less likely to delist due to bankruptcy and other negative delisting reasons. The results from our survival models suggest that a 12-month increase in median lockup length increases the survival time by 27 percent, an effect which is statistically and economically significant. Second, a comparative analysis of long-run performance over three years after IPO reveals that IPOs with longer lockups have superior performance relative to IPOs with shorter lockups. These results are consistent across different benchmarks and factor models in both event-time and calendar-time analysis. Furthermore, longer lockup length is a statistically significant predictor of better long-run stock return performance using buy-and-hold returns. We also find negative abnormal returns around lockup expiry. The negative returns tend to be concentrated in IPOs with shorter lockups. Finally, we analyse the association between lockup length and the level of earnings management. We document a statistically significant inverse relationship between earnings management and lockup length. Longer lockups effectively reduce earnings management and this result is invariant to adjustments for potential endogeneity of lockups and alternative proxy for earnings management. Overall evidence suggests that longer lockups tend to be associated with longer survival, superior performance and lower earnings management.

This Thesis proposes a new approach to explaining the allocation of foreign direct investments (FDI), by applying the accounting framework for valuating a company’s intangible assets at a country level. This framework allows us to identify a valuable group of a country’s assets that previously had not been taken into account: a group of assets that forms a country’s Goodwill, or national Goodwill. National Goodwill includes all those unmeasurable, unquantifiable or not easily identifiable assets that add to (or subtract from) a country’s market value and that can, in turn, generate FDI inflows. The research shows how a simple accounting method identifying a company’s goodwill can be adapted into a formula that proxies a country’s Goodwill. By identifying and then quantifying a particular country’s Goodwill, for a large sample of countries, this Thesis postulates that it is possible to test the power of a country’s Goodwill to explain the cross-sectional and time-series variation in FDI flows for a broad set of countries. The ultimate aim of this research is, by placing the difficult to factor, yet extremely important -‘intangible assets’ of a country,- into a more quantifiable form, to provide a much needed specificity to our understanding of the factors that more accurately define a country’s value and attractiveness for FDI investments.

This thesis examines the dry bulk sector of the shipping industry. We begin by analysing the relation between second-hand vessel prices, net earnings, and holding period returns. Specifically, we provide strong statistical evidence that almost the entire volatility of shipping earnings yields can be attributed to variation in expected net earnings growth; almost none to expected returns variation and almost none to varying expectations about the terminal earnings yield. According to our results, earnings yields are negatively and significantly related to future net earnings growth. Furthermore, we find no consistent, strong statistical evidence supporting the existence of time-varying risk premia in the valuation of dry bulk vessels. Accordingly, we integrate the examination of the second-hand market by incorporating in the analysis the trading activity related to dry bulk vessels. For this purpose, we develop a heterogeneous expectations asset pricing model that can account for the actual behaviour of vessel prices and the positive correlation between net earnings, vessel prices, and second-hand vessel transactions. The proposed economy consists of two agent types who form heterogeneous expectations about future net earnings and at the same time under(over)estimate the future demand responses of their competitors. Formal estimation of the model suggests that the average investor expectations in the second-hand market for ships must be “near-rational”. In particular, the investor population must consist of a very large fraction of agents with totally – or very close to – rational beliefs while the remaining ones must hold highly extrapolative beliefs; thus, there must exist significant heterogeneity of beliefs in the market. Having concluded the analysis of the second-hand physical shipping market we turn to the derivative market for Forward Freight Agreements (FFAs) related to the dry bulk shipping sector. Accordingly, we illustrate formally that the bulk of volatility in the FFA basis can be attributed to expectations about future physical market conditions rather than expectations about future risk premia. Despite this finding, though, we document the existence of a bias in the FFA rates in the form of “contango” but also of both a strong momentum effect and significant predictability of risk premia by price-based signals and economic variables reflecting physical market conditions. The evidence of bias is further supported by the results of three econometric tests which suggest rejection of the unbiased expectations hypothesis. Finally, to justify these findings, we develop a dynamic asset pricing framework that can incorporate both the “hedging pressure” feature and a heterogeneous-beliefs explanation.

This thesis examines the central question of whether actively managed mutual funds generate returns beyond those offered by passively managed funds. Using a non-parametric change point test and a cross-sectional bootstrap technique, this study conducts the first comprehensive examination of mutual fund performance that explicitly controls for possible time-variation in both alpha and betas of the extended versions of the CAPM, without imposing any specific functional form on the nature of the time-variation in these parameters. We further use an FDR technique that is able to quantify the number of skilled and unskilled managers. Our empirical analysis using these techniques reaches the following conclusions: first, after controlling for time-variation, there is more evidence of manager skill for both net and gross returns than previously documented in the literature (Chapter 4). Second, the estimated proportion of skilled funds in our sample is 8.4%, and 34.1% of the funds are identified as unskilled (Chapter 5). Third, different rules in selecting funds could lead to contradictory inferences on fund performance (Chapter 6).

China is fast becoming an ageing society and this is raising important issues for public health. This study employs nationally representative datasets, the China General Social Surveys and the China Health and Retirement Longitudinal Study, to investigate the relationship between different health outcomes and social capital among older people in China (45 and over). First, the analysis uses binary logistic regression to confirm a significant positive association between subjective measures of individual health and wellbeing and individual-level social capital (measured by social trust, social interaction and membership of organisations and social groups). Second, the analysis combines Difference-In-Difference and Propensity Score Matching to simulate a quasi-experiment designed to identify the causal relationship between social capital and objective health (measured by cognitive function, mental health and physical health). Third, the analysis uses a multilevel modelling strategy to investigate the interrelationships between income inequality, community-level social capital, individual-level social capital and health outcomes. This part of the analysis finds evidence that social capital at the community-level can reduce to some extent the negative association between income inequality and health. Together, the results provide new evidence of the relationship between health, social capital and the distribution of household wealth among older people in China.

This thesis explores the empirical relationship between community characteristics and the amount of chemical releases from local industrial facilities for all 50 states of the US. We concentrate primarily on the effects of ethnic composition and the degree of ethnic diversity within a community. The effect of ethnic composition is captured by the share of each ethnic group within a community. The degree of ethnic diversity is measured by two indices: the fractionalization and polarization index. Our empirical results provide a number of interesting findings. First, there is inconsistent evidence in support of the effect of ethnic composition on chemical releases in 1991-1995 at the zip code level. However, we find that the amount of releases is related with the potential of a community’s collective action to pressurize polluters. Second, we show that local facilities’ environmental performance is not only influenced by the ethnic composition of a community but also by the ethnic diversity of local residents. We argue that ethnic heterogeneity makes it more difficult for members of a community to cooperate and instigate a collective action to protest local polluting facilities. Our estimated results confirm that chemical releases during the period of 1991-1995 increase in a more ethnically diverse communities. Third, our results suggest that differences in toxicity among chemicals should be taken into account when investigating the effect of community characteristics on chemical releases from local facilities. Our findings also confirm the effects of ethnic composition and ethnic diversity in determining chemical releases in 2001-2005 at a county level. However, such findings are subject to regional differences and the choice of chemicals included in the analysis.

Why do we pay tax? If an individual is acting in self-interest, it makes sense to avoid, or evade, as much tax as possible. Rather than exploring why people don't pay tax, this research looks at the reasons why people do pay tax, and asks whether a socio-contractual rights and responsibilities model of citizenship can help explain the tax compliance decision. Through qualitative interviews with the very wealthy, as well as focus group data, this research finds that people. do accept an obligation to pay tax as part of the contribution condition of citizenship, but that paying tax is not an essential part of being a good citizen; what is crucial is making a contribution either evidenced by tax, or by alternative means. Participants did not feel low earners were necessarily not fulfilling their civic duties, although it was important they were not making a negative contribution. Attitudes towards tax avoidance and tax evasion were also explored; when presented with 'real-life' scenarios, most people were more forgiving of some evasion, dependent on the evader's personal circumstances. Evading tax did not necessarily affect that person's 'good citizen' status, reinforcing the idea that paying tax, while an element of citizenship, is not definitive.

Gold ETFs are relatively new instruments that were introduced only recently. Consequently, there are many things that are not known about them. Such things include whether the gold ETFs track physical gold prices, and returns, well in the UK, whether the introduction of the gold ETFs in the UK affected the gold mutual funds in the country and whether the gold ETFs hedged, or can hedge inflation. We find that tracking performance of every gold ETF categories is different. Further, individual tracking performance of every gold ETF differs despite of having similar underlying asset. The best individual gold ETF in tracking is a gold ETF that uses physical gold as its underlying asset. Not only it has the smallest tracking error compared to other gold ETFs, its tracking error is also smaller compared to gold mutual funds. In terms of substitutability, we didn’t find any evidence to conclude that gold ETFs are substitutes for gold mutual funds, based on event study and regression analysis. Finally, the hedging capability of gold ETFs against inflation rates in the UK is found to be better than the hedging capability of inflation-linked bond ETFs, although both types of ETF track the inflation rates well.

This research aims to identify the factors which explain the timing of the adoption of new and revised accounting standards by large firms. The investigation uses a mixed methods explanatory sequential quan→QUAL design as part of a pragmatic constructivist methodology. Quantitative (quan) analysis of financial statements for 158 non-financial FTSE 350 firms identifies the timing of the adoption of accounting standards since IFRS became mandatory for these firms in 2005. Findings are that early adoption is relatively unpopular but its extent varies across standards so that IFRS 6: Exploration for and evaluation of mineral assets, IFRS 8: Operating segments and the new consolidation standards were adopted early by a number of firms. Qualitative analysis (QUAL) of interviews with chief financial officers, group financial controllers, auditors and the IASB explores the values and meanings behind decisions whether to adopt a new standard from the mandatory effective date included in the published standard or to adopt early. Findings are that institutional pressures to copy the practices of other firms have an impact on both firms and their auditors and these pressures influence firms to stay in the mainstream by adopting new accounting standards from the mandatory effective dates. Firms may find the motivation to resist these pressures and adopt early if they see an efficiency, economic or strategic benefit in doing so. By including the views of preparers, this research contributes to knowledge of the financial accounting practices of large firms. It also makes a number of contributions to institutional theory inter alia by portraying the institutional environment as a network of relationships and interdependencies, by presenting empirical evidence regarding the existence and interaction of multiple institutional pressures, and by considering how firms use the tactic of escape in order to avoid the requirements of an existing standard by placing themselves in the new regulatory environment containing the new standard.

This thesis critically explores the reflexivity and resistance of Indonesian Islamic Financial Institutions (IIFIs) towards International Accounting Standards Board (IASB) and Accounting and Auditing Organisation of Islamic Financial Institutions (AAOIFI) financial reporting standardization projects. The motivation of this study derived from two conflicting arguments as to whether or not Islamic financial institutions require specific financial reporting standards to accommodate their specific Islamic finance transactions. Most of the financial reporting researches adopt a narrative approach in their attempt to answer the ‘Why’ question, but neglect further investigation to respond to the ‘What is going on here?' question. This thesis fills the gap by answering the latter question and unveiling doubts on the required financial reporting standards for IFIs as well as the IIFIs and suggesting way forward for an enhanced stability of the global financial systems, through harmonization of financial reporting regimes. The data of this study was collected from semi structured interviews with 32 participants who are well versed with the knowledge on financial reporting standardization projects for IFIs/IIFIs, Shariah issues, and public policy. One of the chapters employs secondary data from conceptual framework and financial reporting standards issued by IASB, AAOIFI, and Indonesian standard setter. The aspect of reflexivity is examined on the extent of IFRS and AAOIFI adoptions by the IIFIs. It begins with the development of IASB and its promoting journey of IFRS that contains political lobbying in the Indonesian institutional arena. Likewise, the aspect of resistance towards AAOIFI is revealed through exploration of the institutional arena that reflects dissimilar finding with that of IFRS. The study involves not only conventional political discourse but also Islamic political interaction that influences the future of Islamic based financial reporting standardization. In other facet, an analysis of the three reporting standards using Maqāsid ul-Shari’āh lens supports the early assumption on the need of a specific financial reporting for the IIFIs. As a way forward, International Islamic Financial Architecture (IIFA) institutions are also examined to explore what supports required to have Islamic based financial reporting standards for IFIs in general and for the IIFIs in specific. The thesis makes four main contributions, both to theories and literatures. Firstly, it shows how the hegemonic political economy of accounting exists within the area of financial reporting standardization, which is not simply by identifying the types of isomorphism that influence the organizations’ involvement in the financial reporting standardization. Secondly, in the context of Islamic financial institutions, the different interpretations of Shariah very much dominate in determining the direction of IFIs towards the implementation of Islamic based financial reporting due to the political influence in the respective countries where Islamic finance operates. Hence, the thesis proposes “Islamic Political Economy of Accounting” as a new theoretical framework to analyse similar discourse. Standard setters and regulators of IFIs are required to be tactful when looking into this issue. Thirdly, as the Islamic finance industry is now at continuous growth and maturity while also facing rising challenges, there must be a different approach to regulate the financial reporting standards. The hybrid way may not be appropriate any longer. This is shown in the analysis of the contents of the standards, where low level of Maqāsid ul- Shari’āh compliance is apparent. Lastly, this thesis also constructs an assumption about the attitude of dominant political leading countries towards the development of Islamic finance. As there is currently no real leadership in the area of Islamic finance, it would require influences from dominant leaders with congregated visions and a mission in line with Islamic values.