This thesis investigates the long-term post-issue performance using a sample of 1,953 UK non-financial IPOs for the period of 1982-2004. Data is obtained from the LSPD. The main measure of performance includes buy-and-hold abnormal returns, cumulative abnormal returns, and calendar time regression intercepts. Our results indicate the mixed evidence on the long-term post-IPO stock performance. Event time analysis produce significant underperformance at five-year horizon while calendar time regression results show that IPOs perform as good as benchmarks. In conclusion, the relative long-term performance depends on the method and benchmark of examining performance. For example, most results based on BHAR measure suggest that the sample underperforms. Additionally, we assess the choice of data set on the conclusion of long-term post-IPO performance. We find that Datastream (DS) produces similar results as London Share Price Database (LSPD) if equal weight scheme is adopted. Additionally, there is insignificant discrepancy for the value weighted returns. Finally, the thesis reveals that two-stage IPOs do not underperform the benchmarks. Furthermore, two-stage IPOs have similar long-term performance compared to that of regular IPOs listed in AIM. Also, the underpricing for two-stage IPOs is less severe than regular IPOs.

The main objective of this thesis is to investigate the short and long–term overreaction phenomenon in the Egyptian stock market. In addition, the thesis investigates links between stock market regulatory policies (price limits and circuit breakers) and the profitability of contrarian strategies. Finally, the study examines the effect of regime switch – from strict price limits to circuit breakers – on the volatility spillover, delayed price discovery and trading interference hypotheses. Using data from the Egyptian stock exchange, I find that a panel data approach adds a new dimension to the existing models, offers interesting additional insights and reveals the importance of the role of unobservable firm-specific factors in addition to observable factors in the analysis of the overreaction phenomenon. Moreover, portfolios based on unobserved factors i.e. management quality, corporate governance and political connections of board members, significantly outperform traditional portfolios based on size. Results also show evidence of genuine long-term overreaction phenomenon in the Egyptian stock market as the contrarian profits of the arbitrage portfolio cannot be attributed to the small firm effect, formation period length, and stability of time varying factor or seasonality effect. Finally, switching from a strict price limit to a circuit breakers regime increases stock price volatility and disrupts the price discovery mechanism in the Egyptian stock market.

In increasingly competitive, complex and volatile environments, the urge to fully understand the future and to thereby deduce insights for strategic processes has - over the past decades - always been of great interest to academics and practitioners. Corporate foresight related research has, however, provided only limited insight to date. The following thesis is based upon a trichotomous analytical framework which scrutinises corporate foresight and its impact on strategic decisions in order to investigate how managers, organisations and the environment influence the phenomenon and its manifestations. The intermediary concept of judgement thereby intends to explain how corporate foresight results can possibly be integrated into strategic decision-making processes. The research data is collected via formal and informal interviews, document analyses and observations within a European bank consisting of multiple business units and segments. The findings reveal that corporate foresight manifests itself in numerous forms and locations. Moreover, it was ascertained that manifold influences from both the internal and external environment affect corporate foresight and its impact on strategic decisions. Further findings additionally illustrate that future perceptions occur in a more quantitative fashion in a banking context. This study finally suggests that the integration of corporate foresight into strategic decisions is not only specified by the phenomenon's manifestation, but also by strategic decision-makers' judgements regarding corporate foresight itself.

The objective of this study is to provide evidence on the efficiency of the stock options market of the European Options Exchange. `Riskless' spreading and hedging strategies using the Black-Scholes call option pricing model with the Merton dividend adjustment, are used to test market efficiency. The results show that, although for the zero transactions costs case above-normal returns are possible, these returns become negative when the bid-ask spread cost is taken into account. These results persist over the two sample periods studied. Two variations of the trading rule that compute model prices by using the same model but with two different estimators of the standard deviation of the underlying stock's return as inputs to the model, also produce similar results. The study concludes that, with respect to the trading rules used and the sample periods studied, there were no inefficiencies on the stock options market of the European Options Exchange.

This thesis addresses the issue of developing optimal "ex~ante" global asset allocation strategies from the viewpoint of a UK investor, without the need to resort in fundamental forecasts of the portfolio inputs. In this context, the main emphasis is placed on the market selection, currency hedging and asset mix decisions as opposed to the individual stocklbond selection within each market. Effectively, the principal focus lies in empirically assessing the extent of inter~temporal instability in the inputs to theglobal portfolio optimization problem and in developing appropriate multivariate estimation procedures that aim to assist investors in achieving superior out of sample portfolio performance. The empirical results from application of MANOY A techniques provide strong evidence about the inter~ temporal instability of the global index covariance structure and the necessity of controlling estimation risk in index portfolio inputs. Multifactor models based on unobservable factors are shown to be capable of reducing the "noise" from the historical correlation structure, even though statistically superior correlation estimates do not always result in superior out of sample portfolio performance, since the latter has relatively low sensitivity to misestimation of correlations. Instead, Bayesian and empirical Bayes~Stein type models appear capable of satisfactorily controlling estimation risk in index returns, while very promising results arise from procedures where investors impose prior restrictions on investment weights. Finally "co~integration" analysis reveals significant evidence of common trends andpredictable return components in a number of markets, primarily hedged bond indices.

This thesis reports a study examining how the corporate centres of UK financial services companies involve themselves in product development in constituent businesses. Herein lies a key challenge for corporate managers - deciding on the appropriate balance between corporate nvolvement and granting autonomy to business units. Analysis of 16 businesses in large UK banks, building societies and insurers shows that in successful product development businesses the corporate centre becomes more intensely involved than in less successful businesses. In addition to providing expert product development advice, a corporate centre can provide leadership in the agreement of objectives based on a long-term vision of market opportunities. The results show that successful businesses are helped by their corporate centres to capitalize more fully on their entrepreneurial efforts. This is so particularly when businesses are allowed autonomy in performing operational tasks. Less successful product development businesses, on the other hand, are distinguished from winners by a distinctly different type of corporate involvement which at the extreme amount to unnecessary meddling in their affairs.

The aim of this dissertation is to provide a comprehensive analysis of how British merchant banks organise and approach contested bids within the institutional framework of the City. To this end, a number of exploratory hypotheses were derived from a pilot study with five merchant banks in the City as well as discussions with the project supervisor. Interviews were then carried out with 30 leading UK merchant banks belonging to either the Accepting or Issuing houses associations regarding their role, organisational structure, approaches to bidding and defensive issues related to contested bids. The main perceptions and empirical findings from this major survey are then compared with results to analysis of 30 case studies spanning the 1979-81 period (supported by analysis of another 10 cases with respect to some issues) and the results are then discussed and analysed in chapters 8 and 9. To obtain an overview of how self regulation prescribes bid behaviour and practices, interviews were also held with various City bodies. Volume 1 of this dissertation is divided into 5 parts. Part I outlines the research objectives, methodology and literature survey. Part II then examines the results of a survey of opinion of merchant bankers. In Part III, main results of the literature survey and merchant banking field work are compared with evidence derived from the case studies. Important research findings pertaining to organisational structure of leading UK merchant banks, approaches to strategies and related issues are then identified and highlighted. Contemporary takeover issues which became apparent during this research project are then analysed and possible reforms suggested (Part IV). The final section i.e., Part V, considers some for corporate advisory work relating to takeovers in the 1980s. In the discussion, details of 40 case studies are used to illustrate the main trends. Volume 2, which is not to be generally available to readers gives a cross section of'transcripts of the interviews held with more than 90 merchant bankers, stockbrokers, takeover specialists, American investment bankers, merchant banking analysts, authors, foreign were chant bankers, officials of self-regulatory bodies as well as relevant financial and non-financial data of the merchant banks interviewed during this survey, Findings of this study are numerous and it has illustrated the fact that UK merchant banks approached their takeover assignments through team work with a minimum of 2, a favored norm of 3 and the maximum team size is dependent on the size, time factor and complexity of the transaction itself. Their approach to contested bids which are invariably multi-disciplinary and complicated should not be viewed purely from the financial perspective alone. In both bidding and defending capacities, the merchant subscribe to the hypotheses that while there are general financial and non-financial principles guiding their approaches,flexibility and creativity are essential. Although the bidder has more control over timing in the takeover Did, however, the findings of this survey have shown that in a number of cases, this factor may not always favour the buyer because of the emergence of rival bidders. Moreover timing is but one element of a bidding/offensive strategy. In essence, the defensive posture is necessarily a response appropriate to the offensive strategy. The share ownership structure of the defending company plays a crucial role in the final outcome of the bid. Generally, the merchant banks perceive that it is relatively easier to defend a client when the ownership is spread amongst the small investors who are thought to be more loyal to their boards. This is particularly important, for the main defensive thrust is often an appeal to shareholders' loyalty. This is but one aspect of defensive strategies for, although the literature of corporate finance tends to dwell on. only a few defensive strategies, this study finds that their range is wide. Another important finding was the fact that UK stockbrokers (as agents) work very closely with the merchant banks ('as principals) in advising on contested bids. The former are normally consulted for their market expertise. One of the leading stockbroking firms interviewed served 8 of the 17 ACH (Accepting Houses Committee) members. Owing to this special relationship between these two types of financial institutions and possibly their lack of financial power comparable to that of the merchant banks, the stockbrokers are generally constrained from acting as prinicpal advisors in takeover situations. However, with the impending structural changes in the stockbroking business in the mid 1980s, there is a possibility that either the merchant bank or stockbroking firm assuming dual capacity. Finally, UK merchant banks in the 1980s will be characterised by a trend towards conglomeracy and the development of fee-based international merchant banking activities especially in the USA and. the Asia/Pacific regions in view of the constriction and competition in domestic corporate financial advisory activities.

The thesis examines the links between the changes in office work (in the insurance industry) caused by computerisotion and rationalisation, and their impact on white-collar employees' work expectations. It is hypothesised that such employees have been turning to unions as a way of retrieving their unfulfilled expectations either by gaining bargaining power over such matters as promotion prospects and work content or by achieve compensatory higher salaries. it is farther hypothesised that managements can be expected to resist all attempts by unions to extend their bargaining into spheres traditionally considered as managerial prerogative. The bureaucratic organisational context of insurance employees is described, with particular reference to the way in which tho employer's control over career prospects and work performance is strengthened by increased bureaucratisation. Consideration is then given to one group of employees - professionals - whose possession of professional expertise minimises the impact of bureaucratic control. The First empirical study (a questionnaire attitude survey and interviews) compares work expectations and achievements and attitudes to the employer and trade union of professional and non-professional employees. It was found that the non-professionals perceive a higher level of bureaucratisation in their jobs and also a more pronounced failure of expectations in relation to their work content and career achievements. This influenced their attitude to their employer but was reflected in union membership and their preferred areas of union activity rather than an intention to leave the company. The process by which a union was recognized for collective bargaining in another insurance company is the subject of the second empirical study. The case-study highlights the strategy by which the management of that company sought to preserve its authority and to maintain control over the conduct of decision-making, particularly in areas such as work content and promotion prospects which have been identified as, the core of employees' unfulfilled expectations. The thesis concludes that pressure by white-collar employees through their union for greater influence on matters such as work content and promotion can be anticipated, and that these matters will be the focus of bargaining in the future.

Although wide variation in the type of consideration offered in corporate acquisitions is observed in practice, little is known about how bidders or targets choose the method of payment in takeovers. Further, several empirical studies report that shareholders of both targets and bidders earn higher returns in cash offers than in equity offers, but the reasons for this more favourable impact of cash offers have not been empirically established. This study attempts to fill these gaps in the literature by addressing three research questions:- 1) What factors determine the method of payment used by bidders in corporate acquisitions? 2) How do target shareholders choose between cash and equity when the bidder has offered "equity with a cash alternative" as the method of payment? 3) Why are bid premia higher in cash offers than in equity offers? In examining how bidders choose the method of payment this study in contrast to all previous studies, emphasises that there is a simultaneous and joint relationship between the method of payment and the choice of accounting policy. Accordingly, we adopt a simultaneous equations framework with payment method and accounting policy choices as endogenous variables. Our results show that payment method has a significant impact on accounting policy choice whereas the reciprocal effect is not significant. This result reflects the fact that UK accounting rules have eroded the distinction between merger and acquisition accounting which is more clearly observed in the US. We study how target shareholders choose the payment currency by examining how a choice is made between cash and equity when the bidder has offered "equity with a cash alternative" as the method of payment. We find that information about the opportunities for realising synergies in the acquisition have no influence on the choice of payment method by target shareholders. The choice is based primarily on the difference in value between the cash and equity offers. This is consistent with the theoretical predictions based on the efficient market hypothesis, that all publicly available information about a security can be reduced into a single index, namely the share price. We tested some of the popular explanations which have been advanced in the literature to explain the higher returns to cash offers. The capital gains tax compensation and the wealth redistribution hypotheses are rejected. Information asymmetry between managers and shareholders can explain some of the higher returns observed in cash offers. This is consistent with signalling models which predict that the use of equity to finance investments signals a belief by managers that their shares are overvalued.

This thesis aims to make a contribution to the understanding of credit risk dynamics in the Sterling Eurobond market. The background to the thesis is the increasing size, complexity and volatility of all debt markets, where the tasks of measuring, understanding and forecasting credit risk are of central importance to investing institutions and to corporate and sovereign borrowers. We investigate the changes in the perceived credit quality of bond issuers through three different approaches. First, we describe the evolution of credit spreads over time, exploring whether they reflect economic fundamental, or whether they represent self-generated force. This question is central to the fixed income literature in general, and to the pricing of risky debt and credit derivatives in particular. The time-series properties of our credit spreads provide strong evidence of mean-reversion, non-linearities, and directional and persistentv olatility. All these stylised facts are captured by time-varying volatility models. Second, we assess the information value of bond ratings, by examining the dynamics of bond spreads around rating revision dates. In contrast to standard event studies we apply a novel GARCH model to the panel data. This lets us examine the effects of the regrading event on the volatility of bond yields as well as the yields themselves. We find that downgrades are viewed as informational events, but upgrades are not. An asymmetric pattern is also observed in the dynamics of volatility. Third, we build a predictive structural model for the downgrade probability using a two-step estimation procedure. This allows us to disentangle the effects of credit rating and various financial and accounting ratios. We find evidence of non-linear effects from both company indebtedness and credit risk. The forecasting model is benchmarked against both a naive model, and a more sophisticated neural network model. Unlike the field of default prediction, little research has been done on forecasting the downgrade event. Filling this gap is of interest to banks and investors in periods of relative economic stability, in the context of value-at-risk models, and for the pricing of credit risky instruments.