Initial public offerings in the port industry: exploring the determinants of underpricing

The capital-intensive nature of the port industry and the long payback period of port investments traditionally determine high financial needs for operating the business. Due to the growing financial requirements for developing greenfield mega-projects and feeding international terminal operators’ overseas expansion, equity markets are expected to extend their role in promoting the industry. In this perspective, the underpricing phenomenon, which represents a direct cost for the issuer during initial public offering (IPO) and discourages companies from going public, is neglected by port literature. The paper explores the antecedents of IPO underpricing in ports. Building upon extant finance and port literature, firm characteristics, transaction features, and country-specific variables are tested as determinants of IPOs’ initial returns. For the aim of this study, 58 port-related IPOs taking place on international stock exchanges are examined, and ordinary least squares regression analysis is performed. The study offers unprecedented understandings of the phenomenon and supports port managers in facing financial challenges. Before launching the IPO, financial executives are invited to carefully identify time-window opportunities, and to monitor underwriters’ reputation when selecting financial partners. Findings bring insights for policymakers, as the public listing of port companies emerges a viable option for implementing port reform.     

Are millennials more multimodal? A latent-class cluster analysis with attitudes and preferences among millennial and Generation X commuters in California

Transportation - Millennials tend to use a variety of travel modes more often than older birth cohorts. Two potential explanations for this phenomenon prevail in the literature. According to the...     

Do millennials value travel time differently because of productive multitasking? A revealed-preference study of Northern California commuters

Transportation - Millennials, the demographic cohort born in the last two decades of the twentieth century, are reported to adopt information and communication technologies (ICTs) in their everyday...     

Projecting travelers into a world of self-driving vehicles: estimating travel behavior implications via a naturalistic experiment

Automated driving technologies are currently penetrating the market, and the coming fully autonomous cars will have far-reaching, yet largely unknown, implications. A critical unknown is the impact on traveler behavior, which in turn impacts sustainability, the economy, and wellbeing. Most behavioral studies, to date, either focus on safety and human factors (driving simulators; test beds), assume travel behavior implications (microsimulators; network analysis), or ask about hypothetical scenarios that are unfamiliar to the subjects (stated preference studies). Here we present a different approach, which is to use a naturalistic experiment to project people into a world of self-driving cars. We mimic potential life with a privately-owned self-driving vehicle by providing 60 h of free chauffeur service for each participating household for use within a 7-day period. We seek to understand the changes in travel behavior as the subjects adjust their travel and activities during the chauffeur week when, as in a self-driving vehicle, they are explicitly relieved of the driving task. In this first pilot application, our sample consisted of 13 subjects from the San Francisco Bay area, drawn from three cohorts: millennials, families, and retirees. We tracked each subject’s travel for 3 weeks (the chauffeur week, 1 week before and 1 week after) and conducted surveys and interviews. During the chauffeur week, we observed sizable increases in vehicle-miles traveled and number of trips, with a more pronounced increase in trips made in the evening and for longer distances and a substantial proportion of “zero-occupancy” vehicle-miles traveled.     

Home-work carpooling for social mixing

Transportation - Shared mobility is widely recognized for its contribution in reducing carbon footprint, traffic congestion, parking needs and transportation-related costs in urban and suburban...     

The university workers’ willingness to pay for commuting

Using a dynamic approach, employing data on job mobility, we demonstrate that university workers?? marginal willingness to pay for reducing commuting distance is about ?0.25 per kilometre travelled. This corresponds to a marginal willingness to pay for reducing commuting time of about 75?% of the net average hourly wage. For females, the willingness to pay is substantially higher than for males. It is also substantially higher for workers that work few hours per day, as predicted by theory.     

Commuter impacts and behavior changes during a temporary freeway closure: the ‘Fix I-5’ project in Sacramento,California

One mile of Interstate 5 (I-5) in downtown Sacramento, California was closed intermittently for reconstruction (‘the Fix project’) over nine weeks in 2008. We analyze the impacts of the Fix on commuters’ travel behavior, as measured through two contemporaneous Internet-based surveys. The impacts of the Fix on traffic conditions do not appear to have been excessive: majorities in all relevant subsamples did not find conditions worse than usual, and sizable minorities actually found them to be better. Among the active changes to commute trips, the easiest options – avoiding rush hour and changing route – were the most common (adopted by 48% and 44%, respectively). Among the changes that reduced vehicle-miles traveled, increasing transit use and increasing telecommuting (TC) were the most common (each adopted by 5–6% of the relevant subsample). Binary logit models of these two choices suggest that persuading current adopters to increase their frequency of use is easier than convincing nonadopters to start TC or switch to transit. Women and those in larger households were found to be more likely to increase TC and transit use. Employer support of commute alternatives significantly influenced the adoption of both strategies.     

A critical examination of an airport noise mitigation scheme and an aircraft noise charge: the case of capacity expansion and externalities at Sydney (Kingsford Smith) airport

In the wake of the Australian airline liberalization in 1990 and its forecasted impact on air traffic, capacity has been expanded at Sydney (Kingsford Smith) airport (Sydney KSA) – Australia's busiest commercial airport – with the construction of the third runway in 1994. Coinciding with the approval for this capacity expansion, the Commonwealth Government amended the Federal Airports Corporation (FAC) Act to direct the FAC to carry out activities which protect the environment from the effects of aircraft operations, with the cost to be borne by the airline industry according to the ‘Polluter Pays Principle'. Noise management plans were part of the conditions for developmental approval for a third runway. To this end, since 1995, Sydney KSA imposes a noise levy designed to generate sufficient revenues to fund a noise mitigation scheme. Although the issues of aircraft noise, in particular its impact on property values and land use planning around the airport, have been extensively addressed in the literature, no one has empirically examined the implications of new environmental policies in conjunction with airline liberalization and change in airport infrastructure. Principles and policy analyses are discussed in this paper. By focusing on the specifics of Sydney KSA, broader policy issues likely to be relevant for other major airports around the world are discussed.     

What drives the gap? Applying the Blinder–Oaxaca decomposition method to examine generational differences in transportation-related attitudes

Transportation - Considerable recent work suggests that Millennials’ behaviors may be converging with those of Generation X as they enter later life stages, but few have investigated whether...