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de Ridder, Adri
Alternative names
Publications (10 of 20) Show all publications
de Ridder, A. & Burnie, D. A. (2016). Managerial actions and nominal stock price levels. European Journal of Finance, 22(14), 1435-1456.
Open this publication in new window or tab >>Managerial actions and nominal stock price levels
2016 (English)In: European Journal of Finance, ISSN 1351-847X, E-ISSN 1466-4364, Vol. 22, no 14, 1435-1456 p.Article in journal (Refereed) Published
Abstract [en]

We examine nominal and real stock prices and the sequential price pattern of stock dividends and stock splits. We find that the average stock price has been fairly stable over time except for two decades in the beginning and end of the twentieth century. Inclusion of these periods yield a decline over time which is generally consistent with the drop in price levels found by Chittenden et al. [2010. A Note on Affordability and the Optimal Share Price. Financial Review 45: 205-216]. In a multivariate setting, the frequency of stock dividends and stock splits is positively related to the frequency for these events the prior year and recent market return. In further tests of the price change we find a positive relationship to the median price change for stock dividends/splits and negatively to labour income growth for stock splits. These findings indicate that stock price reduction via stock dividends and splits attracts individual investors as income grows. One key conclusion is that the primary reason for any stock action, dividend or split, is to fit the norm' stock price level of the market.

Keyword
managerial actions, shareholdings, stock splits, stock dividends, absolute stock price, market "norm' price
National Category
Business Administration
Identifiers
urn:nbn:se:uu:diva-308902 (URN)10.1080/1351847X.2015.1019644 (DOI)000386108500004 ()
Available from: 2016-12-01 Created: 2016-12-01 Last updated: 2017-11-29Bibliographically approved
Abrahamson, M. & De Ridder, A. (2015). Allocation of shares to foreign and domestic investors: Firm and ownership characteristics in Swedish IPOs. Research In International Business and Finance, 34, 52-65.
Open this publication in new window or tab >>Allocation of shares to foreign and domestic investors: Firm and ownership characteristics in Swedish IPOs
2015 (English)In: Research In International Business and Finance, ISSN 0275-5319, E-ISSN 1878-3384, Vol. 34, 52-65 p.Article in journal (Refereed) Published
Abstract [en]

In this article, we analyze underpricing of initial public offerings (IPOs) and holdings following offerings in Sweden. By exploiting a unique hand-collected data set with information on the ultimate holdings by institutional and individual investors, as well as boards of directors, we find, as most prior studies, that IPOs on average are underpriced. IPOs with low (high) initial return have higher (lower) holdings by individual investors. Institutional investors are, to a greater extent than individual investors, also able to identify underpriced firms.

Place, publisher, year, edition, pages
Elsevier, 2015
Keyword
Finance, IPO, Allocation, Underpricing, Investors, Breadth of Ownership, foreign
National Category
Business Administration Social Sciences
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-240313 (URN)10.1016/j.ribaf.2014.12.002 (DOI)
Available from: 2015-01-07 Created: 2015-01-07 Last updated: 2017-12-05
De Ridder, A. & Råsbrant, J. (2014). Share repurchases: does frequency matter?. Studies in Economics and Finance, 31(1), 88-105.
Open this publication in new window or tab >>Share repurchases: does frequency matter?
2014 (English)In: Studies in Economics and Finance, ISSN 1086-7336, Vol. 31, no 1, 88-105 p.Article in journal (Refereed) Published
Place, publisher, year, edition, pages
Emerald: , 2014
National Category
Social Sciences
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-233435 (URN)
Available from: 2014-10-05 Created: 2014-10-05 Last updated: 2015-11-29
de Ridder, A., Burnie, D. A. & Råsbrant, J. (2012). Institutional investors' holdings surrounding equity rights offerings. Global Finance Journal, 23(2), 125-140.
Open this publication in new window or tab >>Institutional investors' holdings surrounding equity rights offerings
2012 (English)In: Global Finance Journal, ISSN 1044-0283, E-ISSN 1873-5665, Vol. 23, no 2, 125-140 p.Article in journal (Refereed) Published
Abstract [en]

We examine shareholding surrounding Swedish rights offerings using detailed information on the ownership in firms. We analyze shareholding levels and their changes for domestic and foreign institutional investors. As institutional holdings change, domestic institutions increase their holdings more than foreign institutions. Our examination of low and high buying activities by institutional investors surrounding rights offerings shows no stock picking ability, thus not supporting the “smart-money hypothesis” (Gibson et al., 2004). We also find that investor domicile influences firm value following the offering. Overall, foreign investors exhibit a strong and opposite directional reaction to adverse selection costs than domestic investors.

Keyword
Equity offerings, Rights offerings, Institutional ownership, Domiciles
National Category
Economics and Business
Identifiers
urn:nbn:se:hgo:diva-1639 (URN)10.1016/j.gfj.2012.06.002 (DOI)
Available from: 2012-12-11 Created: 2012-12-11 Last updated: 2017-12-07
Burnie, D. & de Ridder, A. (2011). Do Stock Prices Conform to an Absolute Price Level?. Paper presented at 47th Annual Meeting of European Finance Association (EFA), April 13-16, 2011, Savannah, Georgia, USA. .
Open this publication in new window or tab >>Do Stock Prices Conform to an Absolute Price Level?
2011 (English)Conference paper, Published paper (Refereed)
Abstract [en]

We study nominal and real stock prices in Sweden over the one hundred and ten year period 1900-2009. We find that the average stock price has declined over time; consistent with the drop in price levels found by Chittenden et al. (2010) but while falling they do not exhibit the constant price level suggested by Weld et al. (2009) given the continued decline in prices over time. In a multivariate setting, the frequency of stock splits, stock dividends and IPOs are positively related to the frequency for these events the prior year and the recent 2-year overall return on the market. We find that there is a greater propensity for a stock split, a stock dividend or an IPO when market returns are higher. In further tests of the price change we find a positive relationship between the price difference to the median price for stock splits and stock dividends and a positive relationship to the 2-year overall market return for stock splits. We conclude that the primary reason for an action such as a stock split, “to make the stock affordable”, is valid for our sample.

National Category
Business Administration
Research subject
Business Economics
Identifiers
urn:nbn:se:hgo:diva-1264 (URN)
Conference
47th Annual Meeting of European Finance Association (EFA), April 13-16, 2011, Savannah, Georgia, USA
Available from: 2011-12-19 Created: 2011-12-19 Last updated: 2013-07-01Bibliographically approved
Abrahamson, M., de Ridder, A. & Råsbrant, J. (2011). Information Asymmetries among European Investors: Evidence from Swedish IPOs. In: Prof. Lars Oxelheim (Ed.), 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance: . Paper presented at 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 Mölle, Sweden. Session F1: European Corporate Finance (pp. 1-16). .
Open this publication in new window or tab >>Information Asymmetries among European Investors: Evidence from Swedish IPOs
2011 (English)In: 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance / [ed] Prof. Lars Oxelheim, 2011, 1-16 p.Conference paper, Published paper (Refereed)
Abstract [en]

We study underpricing and equity holdings following initial public offerings (IPOs) in Sweden over the sample period 2000 through 2009. We document, as most prior studies of IPOs, that they on average are underpriced (i.e., associated with a positive initial return). IPOs with a low (high) initial return have higher (lower) equity holdings by retail investors. Our analysis of domicile of institutional investors indicates that foreign institutional investors have preferences for holdings in IPOs characterized by a high initial return and large capitalization values. Analysis of overseas institutional holdings indicates existence of information asymmetries related to distance.

Keyword
IPO, initial public offering, ownership, structure, breadth, price level, initial return
National Category
Economics and Business Social Sciences
Research subject
Business Economics (HGO)
Identifiers
urn:nbn:se:uu:diva-197282 (URN)
Conference
13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 Mölle, Sweden. Session F1: European Corporate Finance
Available from: 2013-04-15 Created: 2013-03-21 Last updated: 2015-02-06Bibliographically approved
Abrahamson, M., de Ridder, A. & Råsbrant, J. (2011). Information Asymmetries among European Investors: Evidence from Swedish IPOs. In: Prof. Lars Oxelheim (Ed.), 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance. Paper presented at 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 Mölle, Sweden. Session F1: European Corporate Finance (pp. 1-16). .
Open this publication in new window or tab >>Information Asymmetries among European Investors: Evidence from Swedish IPOs
2011 (English)In: 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance / [ed] Prof. Lars Oxelheim, 2011, 1-16 p.Conference paper, Published paper (Refereed)
Abstract [en]

We study underpricing and equity holdings following initial public offerings (IPOs) in Sweden over the sample period 2000 through 2009. We document, as most prior studies of IPOs, that they on average are underpriced (i.e., associated with a positive initial return). IPOs with a low (high) initial return have higher (lower) equity holdings by retail investors. Our analysis of domicile of institutional investors indicates that foreign institutional investors have preferences for holdings in IPOs characterized by a high initial return and large capitalization values. Analysis of overseas institutional holdings indicates existence of information asymmetries related to distance.

Keyword
IPO, initial public offering, ownership, structure, breadth, price level, initial return
National Category
Economics and Business
Research subject
Business Economics
Identifiers
urn:nbn:se:hgo:diva-896 (URN)
Conference
13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 Mölle, Sweden. Session F1: European Corporate Finance
Available from: 2011-05-27 Created: 2011-05-27 Last updated: 2013-07-01Bibliographically approved
Abrahamson, M. & de Ridder, A. (2011). Valuation of Swedish IPO Companies: Who Receives the Money Left on the Table?. In: 2nd Annual Nordic Financial Accounting: . Paper presented at 2nd Annual Nordic Financial Accounting. .
Open this publication in new window or tab >>Valuation of Swedish IPO Companies: Who Receives the Money Left on the Table?
2011 (English)In: 2nd Annual Nordic Financial Accounting, 2011Conference paper, Published paper (Refereed)
Abstract [en]

We study underpricing and equity holdings following initial public offerings (IPOs) in Sweden over the sample period 2000 through 2010. By exploiting a unique data set, with information of the ultimate holdings by institutional as well as individual investors in these firms, we make several original contributions to the existing literature related to IPOs as our data are sharper and more detailed than what have been used in prior studies. We document, as most prior studies of IPOs, that they on average are underpriced (i.e., associated with a positive initial return). IPOs with low (high) initial return have higher (lower) equity holdings by retail investors. We find that institutional investors are, to greater extent than individual investors, able to identify firms with a high initial return (i.e. receives the money left on the table). Hence, our data support the generally accepted view that institutional investors are better equipped to process information. We also confirm that the relationship between underpricing (the initial return) and offer price is U-shaped, as first reported by Fernando, Krishnamurty and Spindt (2004). Our multivariate analysis shows that individual investors have preferences for low priced IPOs whereas domestic (foreign) institutional investors have preferences for low (high) priced IPOs. Our analysis of domicile of institutional investors indicates that foreign institutional investors have preferences for holdings in IPOs characterized by a high initial return and large capitalization values. Analysis of overseas institutional holdings indicates existence of information asymmetries related to distance.

 

Keyword
IPO, Ownership structure, Sweden, Stock Market
National Category
Business Administration Social Sciences
Research subject
Business Economics (HGO)
Identifiers
urn:nbn:se:uu:diva-197280 (URN)
Conference
2nd Annual Nordic Financial Accounting
Projects
Doktorand företagsfinansiering
Available from: 2011-12-01 Created: 2013-03-21 Last updated: 2015-02-06
Abrahamson, M. & de Ridder, A. (2011). Valuation of Swedish IPO Companies: Who Receives the Money Left on the Table?. In: 2nd Annual Nordic Financial Accounting. Paper presented at 2nd Annual Nordic Financial Accounting. .
Open this publication in new window or tab >>Valuation of Swedish IPO Companies: Who Receives the Money Left on the Table?
2011 (English)In: 2nd Annual Nordic Financial Accounting, 2011Conference paper, Published paper (Refereed)
Abstract [en]

We study underpricing and equity holdings following initial public offerings (IPOs) in Sweden over the sample period 2000 through 2010. By exploiting a unique data set, with information of the ultimate holdings by institutional as well as individual investors in these firms, we make several original contributions to the existing literature related to IPOs as our data are sharper and more detailed than what have been used in prior studies. We document, as most prior studies of IPOs, that they on average are underpriced (i.e., associated with a positive initial return). IPOs with low (high) initial return have higher (lower) equity holdings by retail investors. We find that institutional investors are, to greater extent than individual investors, able to identify firms with a high initial return (i.e. receives the money left on the table). Hence, our data support the generally accepted view that institutional investors are better equipped to process information. We also confirm that the relationship between underpricing (the initial return) and offer price is U-shaped, as first reported by Fernando, Krishnamurty and Spindt (2004). Our multivariate analysis shows that individual investors have preferences for low priced IPOs whereas domestic (foreign) institutional investors have preferences for low (high) priced IPOs. Our analysis of domicile of institutional investors indicates that foreign institutional investors have preferences for holdings in IPOs characterized by a high initial return and large capitalization values. Analysis of overseas institutional holdings indicates existence of information asymmetries related to distance.

 

Keyword
IPO, Ownership structure, Sweden, Stock Market
National Category
Business Administration
Research subject
Business Economics
Identifiers
urn:nbn:se:hgo:diva-1172 (URN)
Conference
2nd Annual Nordic Financial Accounting
Projects
Doktorand företagsfinansiering
Available from: 2011-12-01 Created: 2011-12-01 Last updated: 2013-07-01Bibliographically approved
de Ridder, A. (2010). Billiga och dyra aktier: några iakttagelser. In: Adri de Ridder, Åke Sandström (Ed.), Gotlandsakademiker tycker om ...: 2010 (pp. 101-116). Visby: Gotland University Press.
Open this publication in new window or tab >>Billiga och dyra aktier: några iakttagelser
2010 (Swedish)In: Gotlandsakademiker tycker om ...: 2010 / [ed] Adri de Ridder, Åke Sandström, Visby: Gotland University Press , 2010, 101-116 p.Chapter in book (Other academic)
Place, publisher, year, edition, pages
Visby: Gotland University Press, 2010
Series
Gotland University Press, ISSN 1653-7424 ; 8
National Category
Business Administration
Identifiers
urn:nbn:se:hgo:diva-729 (URN)
Available from: 2010-12-20 Created: 2010-12-20 Last updated: 2013-07-01Bibliographically approved
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