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We derive theoretically that an open auction IPO results in higher IPO ofier price (less under- pricing) and more issuer proceeds than a traditional bookbuilding IPO, if maximizing issuer proceeds is the IPO objective. Our empirical results using the U.S. open auction IPO data underwritten by WR Hambrecht + Co and a 5-to-1 matching sample of the bookbuilding IPOs from 1998 to 2014 support this notion. Open auction IPOs are associated with statistically significant less underpricing for one day, one week, one month, two months, and three months post IPO. Bookbuilding IPO firms are more likely to register for and exercise the greenshoe option, and issue seasoned equity ofierings, consistent with our theoretical result that they raise sub-optimal amount of capital through the initial stage of IPO. Open auction IPOs also take longer to go public, amend S-1 files more frequently, and price IPO more conservatively relative to the previously suggested price ranges.

Keywords: Open Auction IPOs, Bookbuilding IPOs, IPO Underpricing, Greenshoe Option

JEL: G23, G30, G32

Purpose: The article shows the impact of household debt on the banking system stability in Vietnam, and proposes the policy implications to minimize the  impact of household debt on the banking system.

Methods: The study uses the method of autoregression (VAR - Vector Autoregression) with micro-level and macro-level data from 20 commercial banks to examine the impact of household debt on the stability of finance in Vietnam.

Finding: This study assesses the impact of household debt on the banking system in Vietnam, and proposes some policy implications to promote positive effects and limit the negative impacts of household debt on the stability of the banking system in Vietnam.

Implications: Policymakers need to perfect the policy framework to reduce the risks of the Vietnamese banking system from excessive household debt.

Originality: In addition, the previous studies show the impact of household debt on the stability of the banking system in other countries; However; there is no research in Vietnam that indicates the impact of family household debt on the Vietnamese banking system. This article fills this gap.

Keywords: Household debt, banking system stability, VAR.

This paper examines the relationship among the mortgage rate, benchmark deposit rate, commodity residential housing prices and inflation rate in China both in the long run and short run from Jan. 1998-June.2022. Using the error-correction model, I find that the pass-through of benchmark deposit rate to mortgage rate is complete; I also find an information asymmetry since the central bank adjusts mortgage rate downwards faster than upwards, and changes in house prices have weak effect on mortgage rate both in the long run and short run, that means the mortgage rate is still not sensitive to the changing of residential housing price in China. The analysis suggests the central government should further let loan prime rate more market flexible in order to adjust residential housing prices change especially during the COVID-19 global economy recession period. At the meantime, the government should pay attention to the inflation rate during the expansionary monetary policy period and make the housing market more stable and healthy development.

Keywords: Mortgage rate, Error-correction model, Information asymmetry, Loan Prime Rate, Inflation Rate

JEL Classification: B22, E44, R38

The main objective of this research is to evaluate the extent to which international trade impacted on economic development in Nigeria. The data employed for this study are basically annual time series data covering 1986- 2018. The data were obtained from World Bank data outlook, and central bank of Nigeria statistical bulletin. This study adopts the statistical method of method of multiple linear regression approach using ordinary least squares to examine the relationship between Real Gross Domestic Product as dependent variable and degree of openness, foreign exchange rate and interest rate as independent variables. The result of this study showed that relationship exist between international trade and economic growth, and that while some components of international trade exerted positive and significant effect on growth, INTR exerted positive but insignificant effect. The result further shows that all the regressors except interest rate were statistically significance at 5% level of significance. The researcher recommends that the government formulates effective policies on trade liberalization, exchange rate that will bring about low inflation rate, high productivity growth and economic development and political stability.

Keywords: International Trade, Global Economic Development, Real Gross Domestic Product, Openness

The study examined the impact of economic recovery on market capitalization in Nigeria. The specific objectives of the study include: to examine the effect of Gross Domestic Product (GDP) growth rate on market capitalization, to determine the influence of Inflation rate on market capitalization and to assess the impact of Exchange rate on market capitalization. To achieve the objective of the study, ex-post facto research design was adopted. The researcher used secondary data in collating the required data. The data were collected from CBN statistical bulletin. In testing the hypotheses, multiple regression analysis was used. The findings revealed that GDP growth rate has positive impact on market capitalization while inflation rate and exchange rate have negative impact on market capitalization. The study recommends that Nigeria government should devise a means of increasing gross domestic product growth rate through effective utilization of their revenue allocation and expending. The study also recommends that during economic recovery, Nigeria government should ensure that their inflation rate is reduced. Inflation being the major economic factor that can be hampered by economic recession can reduce market capitalization in Nigeria.

Keywords: Economic recovery, GDP growth rate, inflation rate, exchange rate and market capitalization.

The main objective of this research is to investigate the impact of selected macroeconomic variables on foreign direct investment (FDI) inflow in Nigeria. The macroeconomic variables selected are exchange rate, inflation rate, monetary policy rate and gross domestic product growth rate. These variables were used as the repressors. FDI comprised the amount of inflow between 1986 and 2020. FDI was used as the dependent variable. This study employed Autoregressive Distributed Lag (ARDL) technique because the model variables were integrated at mixed order of both level and first difference. The ARDL bounds test for cointegration revealed that the selected macroeconomic variables and FDI were bound by a long-run relationship. The estimated short-run coefficients indicated that inflation and exchange rate were the major macroeconomic variables that significantly reduced FDI inflow in Nigeria while GDP growth rate and monetary policy rate were positive and significant. In the long-run, GDP growth rate and exchange rate exerted positive impact on FDI inflow while the impact of monetary policy rate was negative and significant. Following these empirical result obtained, the researcher recommends that monetary authorities in Nigeria should ensure robust GDP growth, exchange rate stability and effective monetary policy rate to attract FDI into Nigeria and formulate effective foreign exchange policies that will be attract foreign investors.

Keywords: FDI, macroeconomic variables, economic size, exchange rate, inflation, monetary policy rate

The weak form of the inflation irrelevance proposition posits that domestic inflation does not impact in a statistically significant way stock returns. The semi-strong form is a hypothesis that, not only domestic inflation, but foreign inflation and foreign exchange rate changes also do not affect stock returns. The strong version is that inflation, foreign inflation and exchange rate changes do not explain stock returns neither in the short run nor in the long run. In other terms these three nominal variables do not affect a real variable like stock prices. Stock prices are designated as a real variable because of the net worth or Net Present Value (NPV) equation: nominal cash flows are discounted by a nominal rate and real cash flows are discounted by a real rate, and each is one side of the same coin, and should be equal. The present paper tests the three forms of the inflation irrelevance proposition on the market stock indexes of a sample of 22 countries, both developed and developing. While the weak form and the semi-strong form are solidly validated and supported empirically, the statistical evidence on the strong version is rather mixed and indeterminate. Overall, the proposition of inflation irrelevance fares well, and deserves to be accepted as a new norm or as an established stylized fact to reckon with.

Key words: stock returns, inflation irrelevance, three forms of general neutrality, Gordon constant dividend growth model, multiple regression analysis, international evidence.

JEL Codes: C32, C58, E31, F41, G15