Coleção Insper Business and Economics Working Papers
URI permanente para esta coleçãohttps://repositorio.insper.edu.br/handle/11224/5740
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Resultados da Pesquisa
Working Paper An investigation of the partial adjustment effect of Brazilian IPOs(2013) ANDREA MARIA ACCIOLY FONSECA MINARDI; Moita, Rodrigo Menon Simões; Castanho, Rafael PlantierInitial public offer (IPO) is an alternative for companies to finance investments, for families to sell part or the total of their stake, and for private equity to exit. Although bookbuilding process reduces information asymetry and underpricing in IPOs, global literature reports positive first day return. When the underwriter perceives high demand, he or she adjusts upward the offer price, but not the full fair price. This partial adjustment creates positive first day return, which is used to compensate informed investors for revealing truthful information during the pre deal period. We investigate Brazilian IPOs issued between 2004 and 2012 and find evidence of partial adjustment in Brazil. Pre-deal information predicts both, underpricing and the exercise of greenshoe option.Working Paper Entry in School Markets: Theory and Evidence from Brazilian Municipalities(2012) NAERCIO AQUINO MENEZES FILHO; Moita, Rodrigo Menon Simões; Andrade, Eduardo de CarvalhoThis paper develops a theoretical model of private school entry and estimates it using data from Brazilian municipalities. The school market is different from other markets because students are both consumers and inputs in the production fuction of education. There is a benefit to study among good peers. The theoretical model predicts a segregated equilib rium where the better students attend the private schools, rendering these with a better (endogenous) quality than the public ones. Hence, a private institution only needs to attract the best local students to be better than the existing public schools. The model’s main prediction is that educa tional inequality induces entry. We use a panel data of private school entry in Brazilian municipalities between 1995 and 2000 to estimate an entry model. The econometric results confirm the main theoretical find ing: education inequality has a positive effect on entry. A higher degree of inequality increases the private schools’ ability to cream skim the best students. We also observe a decrease in the quality of the public schools, as measured by math and reading test scores, when a private school enters a town.Working Paper Permanent Excess Demand as Business Strategy: An Analysis of the Brazilian Higher-Education Market(2011) Andrade, Eduardo de Carvalho; Moita, Rodrigo Menon Simões; Silva, Carlos Eduardo Lobo eMany Higher Education Institutions (HEIs) establish tuition below the equilibrium price to generate permanent excess demand. This paper first adapts Becker’s (1991) theory to understand why the HEIs price in this way. The fact that students are both consumers and inputs on the education production function gives rise to a market equilibrium, where some firms have excess demand and charge high prices, and others charge low prices and have empty seats. Second, the paper analyzes this equilibrium empirically. We estimate the demand for undergraduate courses in business administration in the state of São Paulo, and show that the quality of the student body is important on the students’ decisions of where to study. The results show that tuition, quality of incoming students and percentage of professors with doctorates are the determining factors of students’ choice. Since student quality determines the demand for a HEI, we calculate how much the HEIs value having better students; that is the total revenue that each HEI gives up to guarantee excess demand. Regarding the “investment” in selectivity, 39 HEIs in São Paulo give up a combined 5 million Reais (or US$ 3.14 million) in revenue per year per freshman class, which means 7.6% of the revenue coming from a freshman class.Working Paper Peer Effect and Competition in Higher Education(2009) Andrade, Eduardo de Carvalho; Moita, Rodrigo Menon Simões; Silva, Carlos E. L.This paper analyzes the role of peer effect in the market for higher education. Peer effect is a key variable to understand why higher education institutions set tuition in a way to maintain permanent excess demand. We use data on undergraduate business courses in Brazil to estimate a discrete choice model of demand. The results show a strong impact of peer effect on students’ choice of school. We calculate the tuition increase that would eliminate the excess demand. The results show that the upper limit of the total investment in peer effect is equal to US$ 770 thousands per month for the freshmen year, or 5.13% of the current revenues.