Now showing 1 - 10 of 20
  • Publication
    Is there a high technology pecking order? An investigation of the capital structure of NTBFs in the Irish software sector
    (University College Dublin. School of Business. Centre for Financial Markets, 2004-09) ;
    This paper examines the financing of 117 privately held new technology-based firms (NTBFs) in the Irish software product sector. We advance the high-technology pecking order hypothesis (HTPOH) to explain the dominance of external equity over debt in NTBFs. Using founders’ opinions and perceptions on various financing issues, we find evidence consistent with four implications of the HTPOH. Sample firm founders perceive low tax benefits of debt, and very high levels of business risk as reflected in pessimism about their likelihood of survival even with adequate financing. In addition, founders perceive greater information asymmetries in debt than in private equity markets. This finding is consistent with the spirit of Myers’ (1984) and Myers and Majluf’s (1984) pecking order hypothesis in that firms prefer sources of finance associated with the least information asymmetry. A related finding is that founders believe issuing equity sends a positive signal to clients, suppliers and financiers.
      474
  • Publication
      276
  • Publication
    What factors determine the use of venture capital? Evidence from the Irish software sector
    (University College Dublin. School of Business. Centre for Financial Markets, 2004) ;
    We address the venture capital financing issue from the firm’s perspective. Using survey data for 110 new technology-based firms (NTBFs) in the Irish software sector, we assess the extent to which 5 human capital and 3 other variables determine the firm’s use of venture capital. Education of the lead founder to degree level is the only significant human capital variable, and it is directly related to the likelihood of being venture capital-backed. Venture capital-backed firms have significantly higher start-up costs, and their founders are less averse to loss of control than non-venture capital-backed firms. We conclude that the use of venture capital is dictated largely by the willingness of founders to relinquish control.
      768
  • Publication
    Competitiveness implications for Ireland of EU enlargement
    (University College Dublin. School of Economics, 2002-09) ; ; ;
    Ten states, primarily from Central and Eastern Europe, are likely to be admitted to the EU within the next few years. The present paper assesses the competitiveness implications of this enlargement for Ireland. Four specific topics are considered: the trade effects, the implications for Ireland's ability to attract FDI, the likely levels of immigration from Central and Eastern Europe and its consequences, and the budgetary implications for the Irish Exchequer.
      602
  • Publication
    Are fund of hedge fund returns asymmetric?
    (University College Dublin. School of Business. Centre for Financial Markets, 2004) ; ;
    We examine the return distributions of 332 funds of hedge funds and associated indices. Over half of the sample is significantly skewed according to the skewness statistic, and these are split 50/50 positive and negative. However, we argue that the skewness statistic can lead to erroneous inferences regarding the nature of the return distribution, because the test statistic is based on the normal distribution. Using a series of tests that make minimal assumptions about the shape of the underlying distribution, we find very little skewness in the returns of funds of funds, and when we do find evidence of asymmetry it is close to the mean rather than in the tails.
      255
  • Publication
    Our iron takeover law
    (Financial Services Institute of Australasia (Finsia), 2000)
      285
  • Publication
    Regulation of corporate control in Australia : a historical perspective
    (University of Canterbury School of Law, 1998)
    As the process of financial and economic reform gains pace throughout the Asia-Pacific region, one important aspect that deserves the attention of business and legal analysts is the regulation of corporate control. The purpose of this paper is to describe and assess the evolution of corporate control regulation in Australia. With some important changes to takeover law about to be passed by parliament, it is appropriate and timely to reflect on the process of regulatory change that has given us our current system, so that lawmakers may avoid the errors and pitfalls of the past. This assessment of the process of regulatory change in Australia may also provide lessons for regulators in the Asia-Pacific region.[extract]
      360
  • Publication
    Australia's takeover rules : how good are they?
    (Financial Services Institute of Australasia (Finsia), 2002)
      1407
  • Publication
    Information asymmetry and capital structure in SMEs : new technology-based firms in the Irish software sector
    This paper examines the capital structure of 117 new technology-based firms in the Irish software sector. In apparent contradiction to the pecking order hypothesis (POH), most external finance is private equity, and debt is virtually absent. We argue that this is consistent with the spirit of the POH – that firms prefer sources of finance associated with the least information asymmetry. For unlisted technology firms this is private equity. Using information on founders’ perceptions gathered via survey, we confirm that software firm founders perceive greater information asymmetries in debt than in equity markets, and they agree that issuing equity sends a positive signal about the value of their firm. Founders also perceive low tax benefits of debt, and very high levels of business risk.
      1485