The following filters are used as: (1) The pre-IPO FFCF was positive (losing 8 IPOs), and (2) Cash flows are available for 5 years after the IPO (losing 10 IPOs).
The median [CAGR.sub.1] of FFCF is reported at -208.3 percent representing that most of IPO firms faced a negative cash flow in the first year after listing.
(201 1)] to determine that the growth rate is implicit in offer prices of Industrial IPOs having positive FFCF issued on KSE from 1995 to 2008.
(2) FFCF is calculated as: Cash Flow from operating activities + Interest (1 - tax rate) - Capital expenditures.
(79) It included a full list of the executive of the Cercle and the FFCF
, the members of the organizing committee, and a brief history of the Cercle.
The greater value of the FFCF is a direct result of the next hypothesis:
Managerial ownership percentages for the FFCF sample and the ownership controls are comparable, while they are dissimilar for the FFCF sample and the diffuse control.
Even though we do not consciously attempt to match on earnings price (E/P) ratios, the groups are similar across this dimension as well.(9) In no case do we find a statistically significant difference between FFCF sample and control sample E/P according to a one-tailed Wilcoxon signed-rank test.
The FFCF sample and the control groups have similar median betas.
Founding family controlled firms (FFCFs) seem to eschew debt.
This study tests the hypothesis that FFCFs use less debt because founding family CEOs are more averse to control risk, the risk of losing control.
Furthermore, FFCFs are less likely to use short-term debt due to the presence of more stringent covenants in these borrowings, uncertain refinancing rates, and the risk of not being able to roll over their debt.