4 Tips for Writing Perfect USC Essays

4 Tips for Writing Perfect USC Essays SAT / ACT Prep Online Guides and Tips So you have your heart set on going to the University of Southern California. That’s great–it’s one of the best schools in the country! Unfortunately, that makes it tough to get accepted: only 13 percent of applicants are admitted each year. To apply, USC requires you to submit both the Common Application and a school-specific writing supplement designed to â€Å"discover your individual story.† But what does that mean? And how can you make your USCessays stand out from the crowd? We’ve got you covered. This guide will teach you everything you need to know to write an outstanding USC Writing Supplement. We’ll answer all of your questions, including: What is the supplement? What are the questions, and how do I answer them? Are there tips and tricks for knockingyour USC essays out of the park? What steps do I take to finish my USC application? Let’s get started! What Is the USC Supplement? The USC Writing Supplement is an additional part of the USC application that you fill out through the Common App website. The supplement itself consists of two writing prompts (250 words each) and eleven short answer questions (100 characters each). The word limits mean you’ll have to cram a lot of information into a short amount of space. GreatUSC essaysare going to be concise, honest, creative, and engaging. Remember, USC designed the supplement to help admissions counselors get a better sense of your personality. Don’t be afraid to embrace your individuality here! It’s your chance to share aspects of yourself, your life, and your goals that aren’t captured by the Common App. In other words: this is your time to shine. Where Can I Find the USC Supplement? The writing supplement is part of the USC Common Application. Once you've selected USC as one of your colleges, it should pop up in the application portal. If you're not exactly sure how to find it, don't worry...here's a step-by-step guide! Log into the Common App website using your username and password. Click on the â€Å"College Search† tab and search for â€Å"University of Southern California.† Select the search result, then click â€Å"add† to add it to your profile. Return to your dashboard and select the â€Å"University of Southern California.† From there, click on the link titled â€Å"Incomplete† next to the â€Å"Writing Supplement† label at the bottom of the box. You can also access the supplement by clicking on the â€Å"Writing Requirements† tab and clicking the â€Å"Writing Supplement† link. How Do I Answer the USC Essay Prompts? The writing supplement contains two short writing prompts designed to showcase both your writing skills and your personality. But because you’re limited to 250 words, you need to make every word count. Here are some general strategies to keep in mind: #1: Use a Standard Format It’s important that you aren’t wasting precious space. A good strategy is to limit your introduction/thesis statement and your conclusion to one sentence each. That lets you use the rest of the space to answer the prompt. #2: Show, Don't Tell Instead of giving run-of-the-mill answers, use stories and anecdotes to illustrate your point. Paint a picture for your audience when you can! For example, say you’re talking about your love of photography. Instead of saying â€Å"I love to photograph people,† see if you can capture the feeling of taking someone’s picture. A better sentence might read: â€Å"I love trying to capture people’s personality through my camera lens.† The first answer tells us you enjoy photography, but the second response shows us why you love it. #3: Edit, Edit, Edit Don’t be disappointed if your first attempt at answering these prompts goes over the word limit. That’s okay! Keep cutting and revising until you end up with something great. Here are a few examples of how you can edit a sentence to make every word work. Take out wordy phrases.OKAY: â€Å"It was the very best experience of my whole life.†BETTER: â€Å"It was the best experience of my life.†BEST: â€Å"The trip was transformational.† Use the active voice PASSIVE: â€Å"Geology would be my preferred major.† ACTIVE: â€Å"I plan to major in geology." Replace â€Å"is† and â€Å"was† with more descriptive verbs WITH â€Å"IS†: â€Å"Researching cancer treatments is my ultimate career goal.† WITHOUT â€Å"IS†: â€Å"I plan to pursue a career in cancer research.† #4: Don’t Wait Until the Last Minute The USC supplement is short, so it’s tempting to tackle it at the end of the application process. Don’t! Writing short responses is harder than it looks, so give yourself plenty of time. The First USC Essay For your first response, you’ll answer one of three prompts. Keep in mind that no prompt is better than the other, so go with the question that works best. We’ll talk about each question in depth, but here are some tips for choosing the best prompt for you: Pick a question that lets you show a different side of yourself that you haven’t shared yet Choose a topic that allows you to tell a story (remember: paint a picture with your words) Avoid prompts that repeat what you’ve already said in your Common App. The last point is particularly important since one of the writing questions on the Common App asks you to discuss a time when you questioned a belief or idea. It’s basically the same question as the first option below, so if you chose this prompt for your Common App, go with a different option for your writing supplement. How to Answer Essay Option 1 â€Å"USC believes that one learns best when interacting with people of different backgrounds, experiences and perspectives. Tell us about a time you were exposed to a new idea or when your beliefs were challenged by another point of view. WhatIsThis Question Asking You to Do? This is a question about diversity. USC looks for students who are â€Å"interested in the world, in other peoples and cultures, and enjoy examining important issues from a global perspective.† Your response should embrace USC’s core values by demonstrating your ability to participate in a diverse community. To do this, you should talk about a time you were challenged, not about a time you challenged someone else. This is a tricky, but important, distinction. Make sure you pick a story where you had to reconsider an idea because of someone else’s opinions. How Do You Answer the Question? Tell a story with a central conflict, a climax, and a resolution. Think of a particular moment where someone questioned your beliefs. How did it begin? What did the other person say? How did you react? How did you change? Demonstrate a solid understanding of diversity. Merriam-Webster defines diversity as â€Å"the condition of having or being composed of differing elements, especially the inclusion of different types of people (such as people of different races or cultures) in a group or organization.† As you can see from this definition, diversity is about more than race- it also encompasses differences in things like class, culture, gender, nationality, religion, politics, and physical ability. Talk about how your experience changed you. A good way to do this is to pretend this moment is a scene in a television show that you’re directing. How would you describe the event to the actors? What emotions would you ask the actors to portray? Use those details to tell a more complete story. Keep it positive. USC wants students who embrace diversity, so focus on the positives of your experience. Now that you have an idea about what the prompt is asking you to do, here are a few examples to help get you started: You were trying to help a wheelchair user cross the street without asking them if they needed assistance. They explained that using a mobility device doesn’t mean they need help, and they challenged your ideas about disability. Since then, you’ve worked hard to become an ally for people with disabilities. You believed that undocumented illegal immigrants should be deported until you realized that one of your best friends is undocumented. Learning her story- and confronting your own stereotypes about illegal immigration- has made you change your perspective and become passionate about helping undocumented students go to college. That’s why you and your friend organized your city’s first ever march to support immigrants. How to Answer Essay Option 2 â€Å"Describe something outside of your intended academic focus about which you are interested in learning.† WhatIsThis Question Asking You to Do? The admissions committee already knows what your passion is- that’s why you’ve chosen it as your major! Essentially, this question is just asking what else piques your interest. After all...you might want to be a doctor, but medicine isn’t the only thing you love. Also, this prompt wants you to think beyond your degree. For example, if you’re majoring in computer science, don’t talk about learning more about programming. Step outside your comfort zone! The admissions counselors want to see that you’re curious and well-rounded. How Do You Answer the Question? Brainstorm a list of potential topics. Come up with a list of ideas you find fascinating and want to learn more about. If you’re stuck, try jotting down your hobbies. For instance, maybe you’re majoring in business but you play the piano, and you’ve always wanted to learn more about how pianos are made. Connect the topic back to your major...or don’t! There are two ways to approach this question. You can pick an idea that compliments your field of study and explain how the two relate, or you choose a totally different topic to showcase your wide-ranging interests. Neither approach is better than the other, so go the direction that best fits your idea. Explain why you’re interested in this idea. How did this topic first spark your interest? Share a story that captures your â€Å"aha!† moment. For example, maybe you went camping and saw the Milky Way, so now you want to learn about space. Or perhaps you’re vegan, so you’re interested in sustainable agriculture. Telling a story shows the reader your passion, and it might even make them passionate about the subject, too! Address what (if any) study you’ve already done. Have you already dipped your toes into this topic? If so, share a little about what you’ve learned. (If not, that’s okay, too.) Connect your answer back to USC. Even if you aren’t tying your interest back to your major specifically, you should still discuss how going to USC will help you explore your topic. Perhaps USC offers related extracurricular clubs or service organizations you can join. Or maybe it’s USC’s location that’s important- if you’re a movie buff, there’s no better place to learn about film than Los Angeles. How to Answer Essay Option 3 â€Å"What is something about yourself that is essential to understanding you?† WhatIsThis Question Asking You to Do? This is a super open-ended prompt, which can be a blessing and a curse. Essentially, this prompt is saying, â€Å"Tell us something unique about yourself that helps us get to know you.† You have to do more than talk about your tattoo or your love of jazz; you have to tell your reader how that reveals an essential part of who you are. How Do You Answer the Question? Make a list of unique things about yourself. You’re not aiming for the best or craziest or most interesting thing about yourself. There are all sorts of unique things about you! Maybe you can say the alphabet backwards (which shows determination), or you stop to rescue turtles crossing the road (you’re soft-hearted). You don’t have to be an Olympian to have a great story to share. Choose something you didn’t talk about in the Common App. If you focus on a particular personality trait in your other responses, choose something different for this answer. Admission counselors will read your whole application, so try not to repeat yourself. Tell a specific story. Yeah, we know...you’re tired of hearing this. But we’re going to repeat it because it’s what works. Don’t just say you’re unique because you love to dance. Instead, tell your reader about your favorite performance. Explain why this part of you is important to understanding who you are. Explain how your story demonstrates a fundamental part of your personality. For example, maybe you have a scar on your knee from where you jumped off a wall onto your trampoline and missed when you were four. This shows you love adrenaline and enjoy taking risks! Because you can be super creative, there’s a greater risk of missing the mark in this response. Here are some topics/pitfalls to watch out for: Avoid mentioning USC. This prompt is about you! Don’t focus on your family. Again, this prompt is about you! Draw a conclusion. You need to explain how your story reveals a core part of your identity. The SecondUSC Essay Describe how you plan to pursue your academic interests at USC. Please feel free to address your first- and second-choice major selections. What Is This Question Asking You to Do? No option here: you’re stuck with this prompt and limited to 250 words in your response. But that’s okay, because this is the â€Å"Why USC?† question. (It’s a version of what we call the â€Å"why this college essay† around here.) Why do you need to go to USC to fulfill your dreams? Or put another way: why is USC the only school for you? This means choosing and discussing your major (and your second choice major if your program is very competitive). Remember, you’re not committed to the major you pick. You can change majors after you’ve enrolled. How Do You Answer the Question? Research, research, research. Visit the USC website and get to know your college, department, and the classes they offer. Also, take a close look at your major’s course of study. If you’re going to take classes from other departments, figure out which ones and why. For example, if you’re majoring in international relations and want to work in China, you’ll probably take foreign language/culture courses (like Advanced Modern Chinese) and political science courses (like Chinese Foreign Policy). Research the professors in the department and mention them by name. Seize the day. There’s more to college than going to class. Making the most of USC means getting involved and taking advantage of opportunities like internships and study abroad programs. There are over 100 international fellowships and programs available through different colleges, so be sure to look into them. Mentioning programs like the Global Fellows Internship, available to all students, or the Maymester, which is a major-specific opportunity, shows you’re serious about making the most of your education at USC. Focus on USC. Your job is to show why USC and nowhere else can help you achieve your dreams. Special Engineering and Computer Science Prompts If you’ve decided to major in computer science or engineering, you might have noticed you have a few extra USC essays to write. That’s not a mistake- the Viterbi School of Engineering asks potential engineering students to complete two additional short writing prompts. Not sure how to tackle these questions? Don’t worry...we’ll walk you through the answers. How to Answer Question 1 What do you personally expect to get out of studying engineering or computer science in college? WhatIsThis Question Asking You to Do? This prompt asks you to think about more than your four years at USC; it wants you to consider your future career, too. What does your engineering career look like? What do you want to accomplish? The answers to these questions will shape your response and show that you’re future-focused.How Do You Answer the Question? Mention specific professors and classes. Show that you’ve done your homework and are ready to hit the ground running. Think beyond the classroom. Sure, you want to learn to be an engineer. But knowledge- also known as â€Å"hard skills†- is only one part of what you learn in college. You also make connections with your classmates, figure out how to collaborate on projects, and learn how to think outside the box. These are often called â€Å"soft skills.† Good answers mention both hard and soft skill sets. Consider your community. It’s tempting to focus on how your studies will affect you- after all, the question asks about what â€Å"you personally† want to get out of your degree! But part of USC’s mission is providing public leadership and service. The school wants its students and alumni to take their education and use it to help others. Connecting back to the university’s mission statement means you’re thinking about how you fit into the university’s community and its legacy. Don’t repeat yourself. This prompt is very close to the second short writing prompt we discussed above. By talking about your career and helping others, you’ll keep your answer fresh. How to Answer Question 2 While the world as a whole may be more technologically advanced than ever before, the National Academy of Engineering (NAE) has outlined 14 Grand Challenges that engineers should focus on to improve life on the planet. Learn about the Grand Challenges at www.engineeringchallenges.org and tell us which challenge is most important, and why. WhatIsThis Question Asking You to Do? First, go to the National Academy of Engineering website and pick the challenge that resonates most with you. Don’t try to pick â€Å"the best† challenge. All the challenges are equal, so don’t try to guess what the admissions board wants to hear! Honesty is key. This prompt also asks you research and understand your challenge. The National Academy of Engineering website provides in-depth looks at each problem, so start there. (Here’s the write-up explaining why providing access to clean water is important, for example.) Do additional research to see what solutions are on the horizon, too. You also need to argue in favor of your choice. Yep, that’s right: this is a persuasive essay. Your job is to convince the reader- in 250 words!- why the challenge you’ve chosen is most important. Go through your research and pick out the two most convincing pieces of information. This will help you build your argument. How Do You Answer the Question? Jump right in. Use your first sentence or two as your thesis, just like in English class. This helps save space for your argument. Your thesis should be clear, specific, and grab your reader’s attention. Here’s a sample thesis for the â€Å"Make Solar Energy Economical† challenge: â€Å"Solar energy usage has increased 20% in the last 15 years due to lowering costs. Embracing the â€Å"Make Solar Energy Economical† challenge will give more people easy access to clean energy, which will have a major impact on climate change. Show that you’ve thought- and read- about the problem. In order for your response to persuade your reader, it should be well-informed. Use one or two compelling facts to support your point, and paraphrase the information to save space! Don’t bite off more than you can chew. You only have 250 words, so you can’t make a three part argument like you would in an essay. Focus on your most persuasive argument. Make an emotional connection. Appealing to emotions like hope, happiness, and fear have a powerful impact. A good way to do this is by talking about how your challenge will change people’s lives in your conclusion sentence. For instance, if you’re writing about engineering better medicines, talk about the lives your research can save. Image credit: Freddie Alequin The USC Short Answer Questions On the surface, the short answer questions seem simple, but many students find this section the hardest part of the supplement. That’s because these responses are limited to 100 characters or less- shorter than a tweet! Here are some general tips to make tackling the short answer questions a breeze: Maximize the space you have. There is room to elaborate on your answers a bit, and you should. There are no right answers. Admissions counselors don’t have specific responses in mind. This is their way of trying to get to know the person behind the application. You’re more than a major. It’s tempting to make every answer tie into your major or future career in some way. Instead, your answers should capture who you are as a person, and tie them back to your academic goals only if it’s a good fit. Don’t be afraid of a little humor. Embrace being funny, but not at someone else’s expense. (Don’t put people, things, or ideas down in your responses.) Avoid clichà ©s. Keep it tasteful. If you wouldn’t say it to your parents, don’t say it to an admissions counselor! Now that you have some solid strategies, let’s look at each question individually. Questions 1-3: Describe Yourself in Three Words A good way to tackle this question is to ask your friends and family to text you their responses, and look for patterns. For example, if five people say you are nice and caring, combine those into one idea, like â€Å"empathetic.† Adjectives are the most common words to use, but you can pick nouns, too! Just stick to ones with personality (like â€Å"bookworm† if you love to read, or â€Å"shutterbug† if you’re a photographer). Choose words that are highly descriptive (like â€Å"enthusiastic† instead of â€Å"fun†) and avoid clichà ©s if you can. Oh, and the supplement breaks this response into three separate fields, so make sure you don’t type all three words on one line! Here are some sample responses: â€Å"Whimsical, artistic, collaborative† â€Å"Competitive, thoughtful, engaging† â€Å"Loquacious, jovial, encouraging† â€Å"Reserved, compassionate, giving† Question 4: What Is Your Favorite Snack? Here’s a chance to showcase your personality by being specific. Let’s say you love peanut MMs. A specific answer might say, â€Å"Eating peanut MMs while watching a scary movie.† You can also touch on your personal history, especially if you come from a diverse background. You could say something like â€Å"My abuela’s enchiladas† or â€Å"Almond Crush Pocky† as a nod to your heritage. Finally, lean into your weird. We all have strange snacks that somehow hit the spot (we’re looking at you, hot dog buns dunked in hot chocolate). If there’s a bonkers food you enjoy- like hot Cheetos with nacho cheese on top- this is your time to shine. An added bonus? It will definitely make an impression. Here are some sample responses: â€Å"Perfectly toasted marshmallows while sitting around a campfire.† â€Å"A hot dog and soda from Fenway Park.† â€Å"Homemade apple pie with melted cheddar cheese on top!† â€Å"A package of Digestive Biscuits (they’re cookies!) and a glass of milk.† Question 5: Favorite App/Website This is one of the trickier short answer questions. To tackle it, connect your response to one of your interests. If you’re a movie buff, you could mention a movie site. If you love to cook, maybe you mention your favorite food blog. The average person spends about 24 hours a week online, so if you check your browser history, you’ll find a few good options. But whatever you do, don’t pick a website because you think it makes you look smart. Remember: be sincere! (Admissions counselors will be hard pressed to believe anyone’s favorite website is cnn.com.) We also recommend that you avoid mentioning social media sites like Facebook, Twitter, Instagram, or Snapchat unless they’re pertinent to your major in some way. These responses will be a dime a dozen, and they don’t tell your reader much about you. Here are some sample responses: â€Å"BirthMoviesDeath.com. (I’m a movie buff!)† â€Å"Behance.net because I’m inspired by other people’s creativity.† â€Å"Epicurious.com- cooking is my favorite hobby, and the recipes here are the best.† â€Å"AtlasObscura.com, which is definitely the smartest, strangest place on the web.† Question 6: Best Movie of All Time This question can make applicants anxious because people are passionate about the movies they love...and the movies they love to hate! That’s why we recommend you either give a serious answer or embrace silliness. This goes without saying, but make sure your movie choice is appropriate. If you wouldn’t watch it with your family, don’t list it here. Also, steer clear of any super controversial picks- don’t pick a film that is clearly discriminatory, like Birth of a Nation. Here are some sample responses: Serious: â€Å"Blade Runner because of its influence on sci-fi film.† Serious: â€Å"Saving Private Ryan. It reminds us that war is hard, dangerous, and tragic.† Silly: â€Å"The Lion King. We should all â€Å"hakuna matata† a little more!† Both: â€Å"Legally Blonde- I love stories about women chasing their dreams.† Question 7: Dream Job Obviously, this answer should roughly align with your major. (Don’t say your dream job is to play Aaron Burr in Hamilton if you’re majoring in computer science.) Also, think big and think ahead. For instance, if you’re a computer science major, maybe you want to start a company that develops assistive AI for people with disabilities. Embrace big goals! The more specific you are, the better. Don’t just say you want to be a veterinarian. What kind of animals do you want to work with? Will you specialize in something? Do you want to own your own practice? Adding detail will make your answer stand out. Here are some sample responses: â€Å"A large-animal veterinarian that helps rural farmers care for their livestock.† â€Å"The owner of a non-profit that helps women of color succeed in corporate America.† â€Å"A judge appointed to the U.S. Courts of Appeals.† Question 8: What Is Your Theme Song? Everyone needs a little walk-in music. As you think about yours, choose a song with a title that makes a point. It’s tempting to pick a song with a specific lyric that speaks to you, but your admissions counselor might not be able to make the connection. Think more along the lines of â€Å"I Won’t Back Down† by Tom Petty or â€Å"Sisters Are Doin’ It For Themselves† by Aretha Franklin and the Eurythmics. Be careful that your song title can’t be misconstrued. â€Å"I’m Too Sexy† by Right Said Fred might seem like a funny choice to you, but it could also come across as cocky or overconfident. Also, keep your choice appropriate. Look through the song lyrics to make sure they aren’t offensive. And whatever you do: don’t say the Trojan Fight Song. That’s probably the most popular- and most clichà ©d- answer. Here are some sample responses: â€Å"Beautiful Day† by U2 â€Å"My Shot† from the Hamilton soundtrack â€Å"Don’t Stop Believin’† by Journey Question 9: Dream Trip There’s no special trick to answering this question. Just be honest and specific! Also, feel free to focus on experiences as well as destinations. Maybe you want to snorkel with stingrays in the Caribbean or visit the Lord of the Rings set locations in New Zealand. Share that here! Here are some sample responses: Letting a lantern go during the Floating Lantern Festival in Thailand. Hiking to the top of Machu Picchu. Driving from California to Illinois on Route 66 with my best friends. Eating paella from a street vendor in Barcelona. Visiting Zimbabwe and bungee jumping off the Victoria Falls Bridge. Question 10: What TV Show Will You Binge Watch Next? This is another question designed to reveal something about you, your likes, and your dislikes. We suggest you pick a show you like as long as it isn’t completely without substance. If you’re having a hard time choosing, try narrowing it down to your favorite genre first. Here are some sample responses: I’ll binge Making a Murderer because I’m interested in how the justice system works (and doesn’t) The Good Place because it combines comedy and philosophy! Friends because it helps you understand interpersonal relationships. I’m binging RuPaul’s Drag Race and learning a lot about drag culture and inclusivity. Question : Place You Are Most Content? We all have a happy place. Close your eyes and imagine the place you’re most at ease. What does it look like? Smell like? Feel like? Use that picture as inspiration for your response, and don’t be afraid to share the descriptive details. Avoid reiterating your community service or extracurricular activities. While you might really enjoy volunteering at your local Boys and Girls Club, it’s probably not the place where you’re most relaxed and comfortable. Here are some sample responses: â€Å"Curled up in bed with a good book.† â€Å"Hiking through the woods with my dog, Lola.† â€Å"Napping in the hammock in my backyard.† Next Steps for Your USC Supplement Even once you’ve finished and submitted your Common App and USC essays, you’re not quite done. Most of USC’s colleges require you to submit additional materials, like portfoliosorwriting samples, before your application is considered complete. Visit the links below to view each college’s supplemental application requirements and submission deadlines: USC School of Architecture Roski School of Art and Design Iovine and Young Academy for Arts, Technology and the Business of Innovation Marshall School of Business (World Bachelor in Business) USC School of Cinematic Arts Annenberg School for Communication and Journalism Kaufman School of Dance Ostrow School of Dentistry (Junior Transfers Only) USC School of Dramatic Arts Viterbi School of Engineering Thornton School of Music USC School of Pharmacy Need Some Extra Help? The USC application process can be overwhelming, but PrepScholar is here help you succeed! Check out our resources below for more information about how our experts can help you achieve your dreams. Haven’t started your Common Application yet? No problem! We’ve got you covered with tips and tricks to make your application stand out from the crowd. Start learning more about USC! Check out their mission statement, admissions website, and this great blog post about getting to know USC without leaving your couch. Still stressed about your supplement? Get in touch with PrepScholar’s college admissions team! Want to write the perfect college application essay? Get professional help from PrepScholar. Your dedicated PrepScholar Admissions counselor will craft your perfect college essay, from the ground up. We'll learn your background and interests, brainstorm essay topics, and walk you through the essay drafting process, step-by-step. At the end, you'll have a unique essay that you'll proudly submit to your top choice colleges. Don't leave your college application to chance. Find out more about PrepScholar Admissions now:

Free Essays on Response To Wagner

A while back, when first dealing with the subject of music in Nazi Germany, someone raised the point that Wagner would have made a great Nazi. I questioned this statement, since I always believed artists contain an aura of humanity about them, which places them above the petty differences and ideologies of the rest of the world. As an artist, I hoped that Wagner might realize his humanity, and object to the treatment of Jewish peoples during World War II (based on the juxtaposition of Wagner in World War II Nazi Germany). Thankfully, this reading corrected my flawed assumption. During this period in history, no Jewish state existed for people of Hebrew descent. Dishearteningly, Wagner did a good job of hammering this point home within the framework of this article. Examining the second paragraph proves this point: â€Å"The Jew speaks the language of the nation in whose midst he dwells from generation to generation, but he speaks it always as an alien.† According to Wagner, the Jew has no place within the nation and never will. Wagner goes too far when attacking the music of Felix Mendelssohn. Research online revealed the Mendelssohn family converted to Christianity. Upon completion of Hebrides, Wagner complemented the work. Even though Mendelssohn had family history rooted in Judaism, Wagner admitted â€Å"Hebrides is a masterpiece of a landscape-painter of the first order.† One can almost sense an indirect insult or devaluing of the composer, based upon his extremely weak Jewish heritage. Overall, this article changed my opinion on the original stance in class. Wagner, an obvious anti-Semite, would have fit perfectly on the Nazi Germany/Hitler bandwagon that emerged in Germany over half a century later. In fact, the Nazis championed Wagner’s music; perhaps because much of his criticism dealt so harshly with people of Jewish lineage. After reading this article, I probably won’t look at much of Wagner’s non... Free Essays on Response To Wagner Free Essays on Response To Wagner A while back, when first dealing with the subject of music in Nazi Germany, someone raised the point that Wagner would have made a great Nazi. I questioned this statement, since I always believed artists contain an aura of humanity about them, which places them above the petty differences and ideologies of the rest of the world. As an artist, I hoped that Wagner might realize his humanity, and object to the treatment of Jewish peoples during World War II (based on the juxtaposition of Wagner in World War II Nazi Germany). Thankfully, this reading corrected my flawed assumption. During this period in history, no Jewish state existed for people of Hebrew descent. Dishearteningly, Wagner did a good job of hammering this point home within the framework of this article. Examining the second paragraph proves this point: â€Å"The Jew speaks the language of the nation in whose midst he dwells from generation to generation, but he speaks it always as an alien.† According to Wagner, the Jew has no place within the nation and never will. Wagner goes too far when attacking the music of Felix Mendelssohn. Research online revealed the Mendelssohn family converted to Christianity. Upon completion of Hebrides, Wagner complemented the work. Even though Mendelssohn had family history rooted in Judaism, Wagner admitted â€Å"Hebrides is a masterpiece of a landscape-painter of the first order.† One can almost sense an indirect insult or devaluing of the composer, based upon his extremely weak Jewish heritage. Overall, this article changed my opinion on the original stance in class. Wagner, an obvious anti-Semite, would have fit perfectly on the Nazi Germany/Hitler bandwagon that emerged in Germany over half a century later. In fact, the Nazis championed Wagner’s music; perhaps because much of his criticism dealt so harshly with people of Jewish lineage. After reading this article, I probably won’t look at much of Wagner’s non...

Education-as-Entertainment Essay Example | Topics and Well Written Essays - 1000 words

Education-as-Entertainment - Essay Example fort and that it is the basis of modern livelihood, giving it an entertaining approach is a way to ensure it does not get shunned just like any other technicality in life. This study mainly purposes on the treatment of education as entertainment and the issues involved. Postman (1985), presents the extent to which treating education as entertainment has been embraced. The embracing of â€Å"Sesame Street†, a long-running American children television series, by educators, children and parents is a clear implication of entertainment being accepted as a way forward in education. Postman’s Learning in the age of Television further makes it look like it is one of the most recommended ways of learning by stating: â€Å"To those who had not yet been to school, even to those who had just started, the idea of being taught by a series of commercials did not seem peculiar†. On the contrary, Edmundson (1997) expresses stern dislike on the subject of education being treated like some form of entertainment. Some teachers do not teach to amuse, divert or interest learners and should they hear their student term education as some form of enjoyment then they get to develop self-dislike (Edmundson, 1997, pp. 40). â€Å"Schools want kids whose parents can pay the full freight, not the ones who need scholarship or want to bargain down the tuition costs† (Edmundson, 1997, pp. 43). Perhaps this could explain to us the reason as to why entertainment should be integrated into the education system and made part of it. Seemingly, it is not entirely essential to have education as entertainment since according to Edmundson the idea is a way to lure students into specific learning institutions. This therefore sounds like an open market competition where the most attractive school gets more ‘customers’. Now this makes school look like â€Å"Sesame Street†, and we now know that children love school only if it is like â€Å"Sesame Street† (Postman, 1985, pp. 1). In this case the two authors,

Health and Safety at Work etc Act 1974 -UK Essay

Health and Safety at Work etc Act 1974 -UK - Essay Example   The aims of the Commission and the Executive, whose existence and functions derive from the 1974 Act, are to protect the health, safety and welfare of employees and to safeguard others, principally the public, who may be exposed to risks from work activities. The Act was intended:  - To make further provision for securing the health, safety and welfare of persons at work;- To protect others against risks to health or safety in connection with the activities of persons at work;- To control the keeping and use and prevent the unlawful acquisition, possession and use of dangerous substances.   Measuring and Accounting for Corporate Health and Safety Performance,  seeking views on the case for improving approaches to measuring and accounting for corporate health and safety performance. This was circulated to ‘key players’ in the British ‘occupational health and safety system’ and was made available on www.rospa.co.uk. It examined performance measuremen t and reporting against the background of strategic policy development in occupational safety and health as raised in the Governments and the Health and Safety Commission’s plans for ‘Revitalising Health and Safety at Work’    and wider issues of holistic business risk management raised in guidance on the Turnbull Report. A lot of factors may in be in place preventing.  They were built and used at a time when regulatory requirements and operational priorities were very different from those of today.

Population Research Paper Example | Topics and Well Written Essays - 1000 words

Population - Research Paper Example Countries Rank by Total Fertility Rate (TFR) Rank Countries Children Born /Woman Date of Information 1 Zambia 5.81 2013 2 Nigeria 5.31 2013 3 Tanzania 5.01 2013 4 Senegal 4.61 2013 5 Ghana 4.12 2013 6 Cameroon 4.00 2013 7 Kenya 3.76 2013 8 Zimbabwe 3.58 2013 9 Egypt 2.90 2013 10 Kuwait 2.56 2013 11 South Africa 2.25 2013 12 United States 2.06 2013 13 United Kingdom 1.90 2013 14 Brazil 1.81 2013 15 China 1.55 2013 Source: (3Central Intelligence Agency 2013). ... For example, developing countries such as Zambia and Cameroon rank higher in terms of TFR and MMR than developed countries such as the US and the UK. Correspondingly, it can be stated that there exists a direct relationship between TFR and MMR. Evidently, the decline in fertility leads to decrease in the exposure of risks associated with maternal mortality and vice versa (1Central Intelligence Agency 2013; 2Central Intelligence Agency 2013) Rank the Countries by Infant Mortality Rate (IMR) Rank Countries Death/1000 Live Births Date of Information 1 Nigeria 72.97 2013 2 Zambia 68.58 2013 3 Cameroon 58.51 2013 4 Senegal 53.93 2013 5 Tanzania 45.10 2013 6 Kenya 42.18 2013 7 South Africa 42.15 2013 8 Ghana 39.70 2013 9 Zimbabwe 27.25 2013 10 Egypt 23.30 2013 11 Brazil 19.83 2013 12 China 15.20 2013 13 Kuwait 7.68 2013 14 United States 5.90 2013 15 United Kingdom 4.50 2013 Source: (Central Intelligence Agency 2013). Rank by Life Expectancy at Birth Rank Countries Years Date of Information 1 United Kingdom 80.29 2013 2 United States 78.62 2013 3 Kuwait 77.46 2013 4 China 74.99 2013 5 Egypt 73.19 2013 6 Brazil 73.02 2013 7 Ghana 65.32 2013 8 Kenya 63.29 2013 9 Tanzania 60.76 2013 10 Senegal 60.57 2013 11 Cameroon 55.02 2013 12 Zimbabwe 53.86 2013 13 Nigeria 52.46 2013 14 Zambia 51.51 2013 15 South Africa 49.48 2013 Source: (1Central Intelligence Agency 2013). Population Growth Rate (Measured By Total Fertility Rate) Varies With Infant Mortality Rate and Life Expectancy at Birth It has been determined from the above presented charts that infant mortality rate is higher in developing countries than developed countries. On the contrary, life expectancy rate at birth is higher in developed countries than developing countries. Correspondingly,

Risks and Returns of Initial Public Offerings (IPOs)

Risks and Returns of Initial Public Offerings (IPOs) ASSESSMENT OF RISKS AND RETURNS OF INITIAL PUBLIC OFFERINGS (IPOs) ISSUED IN HONG KONG VERSUS CHINA CHAPTER 1 ABSTRACT This dissertation was designed to focus on an assessment of the risks and returns of the initial public offerings (IPOs) issued in Hong Kong versus China. In recent years, Chinas stock market has experienced phenomenal growth with a record of US$62 billion raised in 140 IPOs in 2006, more than that raised in the United States of US$48 billion.1 The growth of Chinas economy continues to fuel the expectations that this trend of strong IPO growth would continue and that Chinese firms would increasingly pursue listings in the Chinese and Hong Kong stock exchanges to tap international investors for their fund raising requirements. A recent example of a Chinese firm doing an IPO was China Railways Construction which issued US$3.1 billion in an IPO in February 2008.2 The key rationale in pursuing this research was that it would give an understanding of the key differences between listings in the Chinese and Hong Kong stock exchanges, particularly in relation to risks and performance (i.e. returns). Based on the statistical analysis of the existing information, there was no marked difference seen in the performance of the IPOs of the mainland Chinese firms in the Hong Kong Exchange versus the performance of the overall exchange (represented by the Hang Seng index). The data availability limited the statistical analysis primarily to the IPO information from the Hong Kong Exchange. The assessment of the risks and performance of the IPOs in the Chinese and Hong Kong stock exchanges led to the following conclusions: (1) Hong Kong is favoured overseas exchange for dual listing of mainland Chinese firms, (2) there is strong uncertainty in listing in the Shanghai Stock Exchange, and (3) interest in China is strong and investors can be tapped through an overseas listing. For the mainland Chinese firms that will be issuing their IPOs, the following are the recommendations resulting from the dissertation: pursue a dual listing, list in the Hong Kong Exchange for the overseas exchange listing, and manage the timing of the IPO. Finally, for further research work, the following are the recommended steps that can be taken to develop the issues in greater detail and address other related concerns: pursue comparison of long-term performance of IPOs, compare the options available for mainland Chinese firms in terms of their IPOs, and assess IPO performance across other factors (such as size of firms, sector of firms, and extent of local versus global breakdown of the business). CHAPTER 2 RESEARCH AIMS AND OBJECTIVES The dissertation had two key research questions which were addressed during the research. These research questions guided the research design and methodology of the dissertation. The two research questions were: 1. How have the firms listing in Chinese and Hong Kong stock exchanges performed since their IPOs, and what risks did these firms face in their listings? 2. How have the IPOs in Chinese and Hong Kong stock exchanges performed compared to each other and also in relation to regional and global competitors? The rest of this section discusses these research questions in greater detail. 2.1 PERFORMANCE SINCE IPO OF CHINESE AND HONG KONG LISTINGS AND RISKS FACED BY FIRMS The dissertation sought to determine the performance since IPO of Chinese and Hong Kong stock exchange listings, and the risks faced by the firms listing in these exchanges. The research aims and objectives for this part of the dissertation focused on the following:  · Assess the performance of the listings in the Chinese and Hong Kong stock exchanges. This assessment focused on how listings have performed in the stock exchanges of Hong Kong and China. This gave an indication of the performance of the stocks which were listed through an IPO, and provided an opportunity to analyse the differences, in terms of performance, in listing between the Chinese and Hong Kong stock exchanges.  · Determine the risks faced by firms pursuing an IPO through the Chinese and Hong Kong stock exchanges. Another objective pursued in this dissertation was determining and understanding the risks that IPOs of firms listing in China and Hong Kong faced. As options have expanded in terms of the location where firms can list in, firms consider various factors in deciding on the best stock exchange for the listing of their IPO to be done. The different options also need to be assessed in terms of the risks that the firms are exposed to by listing in these exchanges. Understand other factors that have affected performance and risks of firms. The recent developments in the financial markets brought on as an impact by the US subprime markets have also affected the performance of recent listings not only in the Chinese and Hong Kong stock exchanges but also in other stock exchanges as well. These factors and the impact these factors have had on the performance of recent IPOs in the Chinese and Hong Kong stock exchanges were also identified and presented in this dissertation.  · Analyse issues using quantitative and qualitative analysis. In pursuing the assessment of the points above, this dissertation pursued both a quantitative and a qualitative approach to ensure that the research methods provided a complementary approach. This was also designed to ensure that the inputs to the analysis had a robust basis with the assessment of performance and risks based off actual quantitative results supported by input from industry practitioners and their observations. 2.2 ASSESSMENT OF IPO PERFORMANCE BETWEEN CHINA AND HONG KONG STOCK EXCHANGES AND VERSUS OTHER STOCK EXCHANGES The assessment of the performance of the IPOs was reviewed by comparing the performance of the IPOs of the Chinese and Hong Kong stock exchanges. In addition, these were also compared versus the performance of IPOs in selected regional and also global stock exchanges to give an indication of the relative performance of the IPOs in these different exchanges. The research aims and objectives of this part of the dissertation were the following:  · Assess objectively the performance of the IPOs in the Chinese and Hong Kong stock exchanges versus selected regional and global stock exchanges. This assessment was conducted using the performance data of selected firms in these exchanges to provide an indication of their relative performances. Thus, the dissertation sought to expand on the initial issue raised on the performance and risks of IPOs between Chinese and Hong Kong stock exchanges. This provided an added viewpoint into how different the performances of the IPOs have been in these exchanges.  · Understand factors and issues affecting the relative performances of the IPOs. With the differences in the performances of IPOs identified in the previous point, the dissertation sought to analyse the factors affecting these differences. This assessment was important as it provided the opportunity to pursue further research of the issues, resulting in increased understanding of factors affecting the performance of the IPOs in these stock exchanges. These two points above were the key research objectives in assessing the performance of the IPOs of the Chinese and Hong Kong stock exchanges versus the IPOs of other selected regional and global stock exchanges. CHAPTER 3 RESEARCH RATIONALE There were several key reasons identified as to the rationale behind pursuing this dissertation. This section discusses the research rationale first from an academic research point of view and then, second, from a personal point of view of the researcher in terms of the benefits achieved in completing the dissertation. From an academic research point of view, the following were the key reasons identified:  · Drive decision for location of IPO for firms listing in stock exchanges: The results of the research could be utilised in forming a decision as to the location of a firms IPO. With greater transparency of the performance and risks in listing in China versus listing in Hong Kong, firms now have further factors to include in building a decision for the location of a firms IPO. This point is particularly relevant for mainland China firms which are looking to tap international overseas investors for their IPO and are considering various options for their action.  · Provide alternative options and thought processes for firms considering their IPOs: The results of the dissertation also provide firms pursuing an IPO in China or Hong Kong further basis for possibly considering other options outside of China or Hong Kong, given the points raised in the findings and analysis section. For example, firms now are not limited only to the thinking pursuing the funding of Chinese firms is best achieved by tapping both the Chinese and Hong Kong stock exchanges for a dual listing as this gives Chinese firms best access to the funding capability of international investors.  · Push stock exchanges to manage more effectively the marketing of their products and services: The dissertation also benefits the Chinese and Hong Kong stock exchanges as this dissertation provides the stock exchanges the basis and the opportunity to revisit their product and service offerings, and ensure that their marketing properly addresses the requirements of Chinese firms in capital markets financing. The review of the Chinese and Hong Kong stock exchanges versus its regional and global peers also provide the stock exchanges an objective assessment of performance levels relative to each other. On a personal level, the dissertation also benefited the research considerably, and also lends further basis to providing a strong rationale for completing the dissertation. The key personal reasons for the researcher in pursuing this dissertation, aside from completing school requirements, include the following:  · Improve knowledge and expertise of researcher. The dissertation was very specific in the research questions addressed and the research issues to be assessed. Thus, the researchers knowledge in these specific academic and business areas were considerably enhanced with the conduct and completion of the dissertation, including the pur suit of in-depth research and the structuring of questions and issues for the dissertation. The understanding of the issues in this dissertation will be very helpful to the researcher as other challenges are faced in an academic and business setting.  · Build project management skills. The dissertation provided the researcher the opportunity to build on project management skills as well given the extent of the period and the different aspects required in completing the dissertation, or project. This skill will be very beneficial to the researcher particularly once this is utilised in the business world where the ability to manage projects, as well as multi-task, is appreciated. The two points above provided further rationale to the pursuit of the completion of this dissertation, and gave the researcher strong reasons for undertaking the dissertation in addition to the given benefit of completing a requirement for school. CHAPTER 4 LITERATURE REVIEW The issue of performance and risks in issuing IPOs in exchanges has been analysed in various research works and there is a relatively comprehensive research work that can form the basis of further research work. For example, assessments of the performance of IPOs of stock exchanges have been done in a number of exchanges already. One research in particular focused on an assessment of the long-term performance of the IPOs of Europes new stock markets.3 The research works focusing on the issue of IPO performance are expected to continue to be of importance to the academic finance community given the debate which goes on relating to the near-term abnormal returns of IPOs and their long-term underperformance. The focus of this dissertation is a comparison and assessment of the performance and risks of IPOs issued in Chinese and Hong Kong stock exchanges. This research differs in other bodies of academic work in that this specific research issue has not been addressed directly. Certainly, the existing literature and academic research provides a preliminary path and approach in resolving the key research questions defined at the beginning of this dissertation paper. In reviewing the related literature on the assessment of risks and performance of IPOs in Chinese and Hong Kong stock exchanges, a number of consistent themes were noted as predominant in the research works. In order to assess the themes which may have contrasting supporting research, these themes are presented below and form the structure for the rest of this section reviewing the related literature:  · Methods for assessment of IPO performance  · Performance of IPOs  · Risk assessment of IPOs  · Period of assessment  · Chinese and Hong Kong IPOs The points above are the key factors discussed in this section. 4.1 METHODS FOR ASSESSMENT OF IPO PERFORMANCE One of the areas that need to be reviewed is the research methodology that previous research works have utilised in pursuing their research. The related literature has shown that the typical method used in analysing the performance largely relies on the use of descriptive statistics. In some occasions, qualitative assessment are included as part of the research methodology in order to gain greater understanding of the performance and the factors affecting the performance of the IPOs. The research mentioned earlier in this section which focused on an assessment of the long-term performance of the IPOs of Europes new stock markets used both qualitative and quantitative assessments as part of the methodology.5 The research approach was a combination of qualitative assessment (to discuss the rationale for the resulting performance) and quantitative analysis (on the IPO performance and which, as expected, was analysed and presented using descriptive statistics). The research work noted in the introduction highlighting the continued debate on the near-term abnormal returns of IPOs and their long-term underperformance was a research piece focused on the returns of IPOs from the Istanbul Stock Exchange. In this research, the performance of the IPOs was assessed utilising descriptive statistics with a comparison of means (z-test: sample for two means) as part of the statistics tool kit utilised. Clearly, the use of descriptive statistics and statistical tests for significance seems to be the preferred method of analysis for these types of research assessments. The dominant use of descriptive statistics also provides confidence that this is the method that would be most logical for the dissertation in the assessment of performance of the IPOs in the stock exchanges. 4.2 PERFORMANCE OF IPOs Another area focused on in this dissertation is the performance of the IPOs in the Chinese and Hong Kong stock exchanges as well as other regional and global stock exchanges. In terms of IPO performance assessment, one research work focused specifically on bank IPOs and their growth. Interestingly, this and the research work mentioned earlier on IPO performance (Europes new stock markets) both found that long-run post-offering returns were poor when compared to various market benchmarks. This finding was supported by another research whose results were from an analysis of 6,000 NASDAQ IPO stocks. Thus, there seems to be a number of research works that have shown the underperformance of IPOs versus other more established stocks or the market benchmarks. A research paper that focused on this underperformance showed that a reason for the underperformance of IPOs was the high expectations which were linked to the IPOs and which affected the prices paid for these offerings. This result is rather ironic as the high expectations given by investors indicate that these investors expected much higher returns from IPOs versus other stocks that these investors could have invested in. A research work with similar findings on the long-term underperformance of IPOs was done on the UK IPOs from the period 1996 to 1999.9 For this research, the long-term underperformance of the IPOs in the study was considerable versus the market performance. A period of three years was used as the long-term period. The research notes that this underperformance has been seen in a large number of countries where the IPO performance was measured over a number of years to assess its performance. The key factors identified in the research as impacting on the long-term performance of the IPOs were: (1) percentage of equity issued as part of the IPO, and (2) degree of multinationality of a firm issuing the IPO. On the first point, the research finding noted that the greater the percentage of the equity issued for the IPO, the greater the probability of underperformance over the long-term. On the latter point, the research finding was that the greater the multinational component of a firm was, the better the expectation for a long-term performance. Further to the research on UK IPOs, another research work on the UK IPOs but focused on the AIM-listed firms versus those on the main board of the London Stock Exchange showed a similar result in terms of long-term underperformance of IPOs. This research work has an additional finding on the cost of equity that is relevant to the risks faced by firms pursuing an IPO. This finding is discussed in greater detail in a later part on the assessment of risks. The research works with an assessment showing poor long-run returns for IPOs is not unanimous though as opposing performance arguments also exist with IPOs being shown to be undervalued and thus provide good, long-run returns even versus the market. However, the reasons that the results are different for this research work is the adjustment done on the valuation of the IPOs which result in the IPO valuation being markedly different from those considered in the other researches which found poor longrun returns for IPOs. This research work utilised an alternative method with adjustments made on the performance of the IPO stocks. The research work on the Istanbul Stock Exchange highlighted a number of reasons for the performance of the IPOs, particularly the abnormal returns shown in the near-term: overvaluation of IPOs by investors and deliberate under-pricing for the IPO which then rewards the informed investors. The long-term underperformance of IPOs is not shared and accepted universally as other research works exist which shows that this is not the case, at least for the particular market and time period considered in these research works. A research on Malaysian IPOs from 1992 to 1996 showed that these IPOs showed particularly strong growth in stock prices over a three-year period from the issuance. This thus negates the concept of long-term underperformance shown by a number of research works. The difference in results could be attributed to a number of factors which could include differences in the parameters of the research factors related to the IPOs such as, for example, the definition of long-term in the assessment (this Malaysian research study utilised a period of three years to define the long-term). Further evidence of long-term performance contrary to other international evidence is that result from a review of IPO performance in Greece from the period 1993 to 1997, which showed that the IPOs performed much better than the market over the long-term and not just in the near-term for the effects of the abnormal near-term returns. In this research work, the definition for long-term performance was again different as the period of one year was taken for this assessment to reflect the long-term performance of the IPOs. The research piece attributes the difference with international evidence to possibly the legal framework, the institutional arrangements, and the degree of development of the capital markets. To further complicate the current thinking on the performance of IPOs, a research work focused on Germany IPOs from 1977 to 1995 showed varying performances over the long-term with some IPOs resulting in considerable underperformance while other IPOs showed excellent long-term performance.15 The focus of the research was not necessarily the determination of the long-term performance of the IPOs and thus could not be considered as inconclusive. The actual focus of the research work was the determination of the action post-IPO and the ability to determine which of the IPOs would perform better over the longer-term. The research finding was that the key predictor of the long-term performance of an IPO was the subsequent financing activity in the equity market with the firms being able to raise additional funds soon after the IPO slated for out-performance versus other firms which failed to generate further funding. Several reasons have been put forth as supporting the underperformance of IPOs in most markets. A research work which looked at French IPOs but focused on the impact of ownership resulted in findings that ownership had an influential and large impact on long-term performance of the IPOs.16 The reason for this was that at some point, usually a typical long-term period such as three to five years, ownership restriction in terms of selling off stakes would have been lifted. Thus, the sell-off of family or block holdings in IPOs after a long-term period impact negatively on the share price and becomes a large reason for the underperformance of IPOs over the long-term. This finding would seem to be applicable to most firms pursuing IPOs as it would be usually the case that a firm issuing an IPO would have large blocks of holdings controlled by very few entities or personalities. 4.3 RISK ASSESSMENT OF IPOs While a number of research works such as those cited earlier have focused only on the performance of the IPOs, other research works have combined the analysis of the risk and rewards related to IPOs, which would be parallel to the focus that this dissertation is geared to do. One, in particular, focused on the risk and return trade-off for IPOs though, admittedly, there was greater focus on how these issuances were riskassessed.A rather focused look on long-run performance showed that industry parameters, timing of IPO, and industry situation all play in the aftermarket returns of IPOs which, in general, are not favourable. One of the risks identified in a research work on AIM-listed IPOs was the resulting cost of equity. A decision factor for the firms considering pursuing an IPO should be the cost of equity and the research finding on the assessment of AIM-listed stocks showed that, potentially, cost of equity is much greater than that expected with the listing on these stock exchanges.Using this as an analogy to the current issue of issuing an IPO between Chinese and Hong Kong stock exchanges, it is possible that this is a risk faced by the mainland Chinese firms in their decision. 4.4 PERIOD OF ASSESSMENT A factor that needs to be made consistent in the assessment of the performance of the IPOs is the period of assessment. The proper time frame could impact on the performance considerably and in viewing this assessment, it would be important to have the proper time frame from which to consider returns. For example, flipping of IPOs impact the pricing of some IPOs post the offering and affect the returns if taken within a short time frame. There is thus a question of the period defined by near-term as well as long-term performance given different periods taken by researchers in conducting their work. Understandably, this could have been driven by the availability of data of the stock prices. In order to have a proper assessment for this dissertation, it would probably be best to utilise the following time periods: one month for near-term performance, and 3 years for consideration of long-term performance. These seem to be the periods that most of the researchers had utilised though it does differ from some of the period conventions used in other researches. 4.5 CHINESE AND HONG KONG IPOs Despite the existence of numerous research work on the assessment of risks and rewards of IPOs across exchanges globally, there have been limited research works which focus on the Chinese and Hong Kong IPOs of recent years. One recent unpublished work touched on under-pricing and the aftermarket liquidity of Hong Kong IPOS, and found that under-pricing was evident in driving liquidity post-IPOs. A more comprehensive published work on Hong Kong IPOs utilised slightly dated figures (IPOs up to 2002) and thus presents a challenge in the findings concluded.22 Another is dated (published in 1998) but does look at the issue of pricing and aftermarket performance of IPOs with results showing large returns accruing in the long-term for IPOs. Other China-related research work focus on performance post-IPO but refer to operating performance of the firms and not the performance of the share price.One research which looked at short-term and long-term IPO performance in China highlighted a number of differences affecting Chinese stocks: stake that the government has in the firm, the size of the firm, and the options available to Chinese investors. Over the next few years, there will continue to be increased interest in the IPOs of firms in mainland China as these firms seek to tap international investors. In turn, international investors are increasingly interested in investing in the mainland Chinese firms given their typical profitable nature (largely owing to monopoly or large market share status) and the presence these firms have in mainland China that international investors find attractive. The pursuit of the IPO by the mainland Chinese firms is partly driven by the need to diversify ownership risk, particularly for the mainland Chinese firms which are predominantly state-owned enterprises (SOEs). Thus, despite extensive related research, there is still scope to pursue this dissertation as it provides further evidence of the risk and reward assessment of IPOs. CHAPTER 5 RESEARCH METHODOLOGY The approach to the dissertation followed an explanatory research approach. This approach was deemed to be the best approach to address the research questions, particularly with the requirement of discovery of insights and ideas. The research approach relied on both extensive primary and secondary research providing a complementary basis for conducting the assessment and analysis of the issues in the research. This section is structured as follows:  · Research analysis and approach. This part describes the overall research approach utilised in this dissertation and the methods of analysing the information retrieved from primary and secondary research methods.  · Primary research. This discusses the primary research undertaken in this dissertation, including the objectives in the methods used.  · Secondary research. This presents the use of secondary research and the complementary approach to the primary research tools.  · Research limitations. In the conduct of the dissertation research, a number of limitations presented itself which impacted on the results of the dissertation. These are explained in this part.  · Ethical considerations. This part goes through the key ethical considerations in the process of completing the dissertation. 5.1 RESEARCH ANALYSIS AND APPROACH The dissertation was conducted using a problem-solving approach. This methodology was used in assessing the quantitative results from the statistical analysis and also in analysing the results of the in-depth interviews, and secondary research. The dissertation utilised a combination of desktop analysis (the statistical analysis and quantitative assessment of the performance of IPOs in various stock exchanges), input from industry practitioners (the qualitative assessment of risks of the IPOs), and desk research (primarily for the secondary research and in providing further support to the results of the statistical analysis and qualitative assessment). The assessment of the performance of the IPOs was conducted using descriptive statistics as these allowed for an objective comparison of the performance (or returns) of the IPOs. Descriptive statistics was also used to show other relevant trends related to the performance of the IPOs from the Chinese and Hong Kong stock exchanges, and also the comparison versus other regional and global stock exchanges. After the assessment and analysis, and with the preliminary results on-hand, the research findings were tested and reviewed in the ‘market through discussions with other stakeholders to ensure that these research findings were sound and logical. The market review also provided feedback and confirmation of the possible research contribution that the dissertation provides. This has been noted as part of the findings and analysis section. 5.2 PRIMARY RESEARCH The key primary research utilised in this dissertation involved interviews with industry practitioners involved in Chinese and Hong Kong IPOs. The objectives in this primary research method were to: (1) understand the key risks for firms pursuing their firms listing in the Chinese and Hong Kong stock exchanges, and (2) determine the perception of the industry practitioners as to the relative performance of IPOs being done in the Chinese and Hong Kong stock exchanges. The interviews were conducted to get an understanding of the key risks that firms are exposed to by pursuing their IPOs in Chinese and Hong Kong stock exchanges. The use of in-depth interviews was selected as the primary research method as this provided an opportunity for the researcher to gain deeper insights into the issues focused on. It was initially planned that in-depth interviews of various stakeholders in the industry would be pursued in order to have a good breadth and depth in understanding the key risks and to get input from a diverse set of stakeholders. However, the research limitations in terms of timing, access to various stakeholders, and leverage of contacts in the Chinese and Hong Kong financial services sectors provided a hindrance to having an extensive list of industry practitioners included in the primary research. Nevertheless, the researcher was still able to have several in-depth interviews and these provided a good indication of the overall viewpoints currently existing in the industry, particularly related to the risks that exist for firms. 5.3 SECONDARY RESEARCH The secondary research for this dissertation involved two key approaches: (1) statistical analysis of stock price performance of selected IPOs in the Chinese and Hong Kong stock exchanges as well as several regional and global stock exchanges, and (2) desk research to understand the viewpoints currently existing on the performance and risks of IPOs in Chinese and Hong Kong stock exchanges. 5.3.1 Statistical Analysis The first secondary research method involved the quantitative data analysis of the performance of the IPOs in the Chinese and Hong Kong stock exchanges. This analysis effectively supported the assessment the performance of the listing in these stock exchanges to determine if there were differences in the performances of IPOs for these exchanges. The objectives in usin Risks and Returns of Initial Public Offerings (IPOs) Risks and Returns of Initial Public Offerings (IPOs) ASSESSMENT OF RISKS AND RETURNS OF INITIAL PUBLIC OFFERINGS (IPOs) ISSUED IN HONG KONG VERSUS CHINA CHAPTER 1 ABSTRACT This dissertation was designed to focus on an assessment of the risks and returns of the initial public offerings (IPOs) issued in Hong Kong versus China. In recent years, Chinas stock market has experienced phenomenal growth with a record of US$62 billion raised in 140 IPOs in 2006, more than that raised in the United States of US$48 billion.1 The growth of Chinas economy continues to fuel the expectations that this trend of strong IPO growth would continue and that Chinese firms would increasingly pursue listings in the Chinese and Hong Kong stock exchanges to tap international investors for their fund raising requirements. A recent example of a Chinese firm doing an IPO was China Railways Construction which issued US$3.1 billion in an IPO in February 2008.2 The key rationale in pursuing this research was that it would give an understanding of the key differences between listings in the Chinese and Hong Kong stock exchanges, particularly in relation to risks and performance (i.e. returns). Based on the statistical analysis of the existing information, there was no marked difference seen in the performance of the IPOs of the mainland Chinese firms in the Hong Kong Exchange versus the performance of the overall exchange (represented by the Hang Seng index). The data availability limited the statistical analysis primarily to the IPO information from the Hong Kong Exchange. The assessment of the risks and performance of the IPOs in the Chinese and Hong Kong stock exchanges led to the following conclusions: (1) Hong Kong is favoured overseas exchange for dual listing of mainland Chinese firms, (2) there is strong uncertainty in listing in the Shanghai Stock Exchange, and (3) interest in China is strong and investors can be tapped through an overseas listing. For the mainland Chinese firms that will be issuing their IPOs, the following are the recommendations resulting from the dissertation: pursue a dual listing, list in the Hong Kong Exchange for the overseas exchange listing, and manage the timing of the IPO. Finally, for further research work, the following are the recommended steps that can be taken to develop the issues in greater detail and address other related concerns: pursue comparison of long-term performance of IPOs, compare the options available for mainland Chinese firms in terms of their IPOs, and assess IPO performance across other factors (such as size of firms, sector of firms, and extent of local versus global breakdown of the business). CHAPTER 2 RESEARCH AIMS AND OBJECTIVES The dissertation had two key research questions which were addressed during the research. These research questions guided the research design and methodology of the dissertation. The two research questions were: 1. How have the firms listing in Chinese and Hong Kong stock exchanges performed since their IPOs, and what risks did these firms face in their listings? 2. How have the IPOs in Chinese and Hong Kong stock exchanges performed compared to each other and also in relation to regional and global competitors? The rest of this section discusses these research questions in greater detail. 2.1 PERFORMANCE SINCE IPO OF CHINESE AND HONG KONG LISTINGS AND RISKS FACED BY FIRMS The dissertation sought to determine the performance since IPO of Chinese and Hong Kong stock exchange listings, and the risks faced by the firms listing in these exchanges. The research aims and objectives for this part of the dissertation focused on the following:  · Assess the performance of the listings in the Chinese and Hong Kong stock exchanges. This assessment focused on how listings have performed in the stock exchanges of Hong Kong and China. This gave an indication of the performance of the stocks which were listed through an IPO, and provided an opportunity to analyse the differences, in terms of performance, in listing between the Chinese and Hong Kong stock exchanges.  · Determine the risks faced by firms pursuing an IPO through the Chinese and Hong Kong stock exchanges. Another objective pursued in this dissertation was determining and understanding the risks that IPOs of firms listing in China and Hong Kong faced. As options have expanded in terms of the location where firms can list in, firms consider various factors in deciding on the best stock exchange for the listing of their IPO to be done. The different options also need to be assessed in terms of the risks that the firms are exposed to by listing in these exchanges. Understand other factors that have affected performance and risks of firms. The recent developments in the financial markets brought on as an impact by the US subprime markets have also affected the performance of recent listings not only in the Chinese and Hong Kong stock exchanges but also in other stock exchanges as well. These factors and the impact these factors have had on the performance of recent IPOs in the Chinese and Hong Kong stock exchanges were also identified and presented in this dissertation.  · Analyse issues using quantitative and qualitative analysis. In pursuing the assessment of the points above, this dissertation pursued both a quantitative and a qualitative approach to ensure that the research methods provided a complementary approach. This was also designed to ensure that the inputs to the analysis had a robust basis with the assessment of performance and risks based off actual quantitative results supported by input from industry practitioners and their observations. 2.2 ASSESSMENT OF IPO PERFORMANCE BETWEEN CHINA AND HONG KONG STOCK EXCHANGES AND VERSUS OTHER STOCK EXCHANGES The assessment of the performance of the IPOs was reviewed by comparing the performance of the IPOs of the Chinese and Hong Kong stock exchanges. In addition, these were also compared versus the performance of IPOs in selected regional and also global stock exchanges to give an indication of the relative performance of the IPOs in these different exchanges. The research aims and objectives of this part of the dissertation were the following:  · Assess objectively the performance of the IPOs in the Chinese and Hong Kong stock exchanges versus selected regional and global stock exchanges. This assessment was conducted using the performance data of selected firms in these exchanges to provide an indication of their relative performances. Thus, the dissertation sought to expand on the initial issue raised on the performance and risks of IPOs between Chinese and Hong Kong stock exchanges. This provided an added viewpoint into how different the performances of the IPOs have been in these exchanges.  · Understand factors and issues affecting the relative performances of the IPOs. With the differences in the performances of IPOs identified in the previous point, the dissertation sought to analyse the factors affecting these differences. This assessment was important as it provided the opportunity to pursue further research of the issues, resulting in increased understanding of factors affecting the performance of the IPOs in these stock exchanges. These two points above were the key research objectives in assessing the performance of the IPOs of the Chinese and Hong Kong stock exchanges versus the IPOs of other selected regional and global stock exchanges. CHAPTER 3 RESEARCH RATIONALE There were several key reasons identified as to the rationale behind pursuing this dissertation. This section discusses the research rationale first from an academic research point of view and then, second, from a personal point of view of the researcher in terms of the benefits achieved in completing the dissertation. From an academic research point of view, the following were the key reasons identified:  · Drive decision for location of IPO for firms listing in stock exchanges: The results of the research could be utilised in forming a decision as to the location of a firms IPO. With greater transparency of the performance and risks in listing in China versus listing in Hong Kong, firms now have further factors to include in building a decision for the location of a firms IPO. This point is particularly relevant for mainland China firms which are looking to tap international overseas investors for their IPO and are considering various options for their action.  · Provide alternative options and thought processes for firms considering their IPOs: The results of the dissertation also provide firms pursuing an IPO in China or Hong Kong further basis for possibly considering other options outside of China or Hong Kong, given the points raised in the findings and analysis section. For example, firms now are not limited only to the thinking pursuing the funding of Chinese firms is best achieved by tapping both the Chinese and Hong Kong stock exchanges for a dual listing as this gives Chinese firms best access to the funding capability of international investors.  · Push stock exchanges to manage more effectively the marketing of their products and services: The dissertation also benefits the Chinese and Hong Kong stock exchanges as this dissertation provides the stock exchanges the basis and the opportunity to revisit their product and service offerings, and ensure that their marketing properly addresses the requirements of Chinese firms in capital markets financing. The review of the Chinese and Hong Kong stock exchanges versus its regional and global peers also provide the stock exchanges an objective assessment of performance levels relative to each other. On a personal level, the dissertation also benefited the research considerably, and also lends further basis to providing a strong rationale for completing the dissertation. The key personal reasons for the researcher in pursuing this dissertation, aside from completing school requirements, include the following:  · Improve knowledge and expertise of researcher. The dissertation was very specific in the research questions addressed and the research issues to be assessed. Thus, the researchers knowledge in these specific academic and business areas were considerably enhanced with the conduct and completion of the dissertation, including the pur suit of in-depth research and the structuring of questions and issues for the dissertation. The understanding of the issues in this dissertation will be very helpful to the researcher as other challenges are faced in an academic and business setting.  · Build project management skills. The dissertation provided the researcher the opportunity to build on project management skills as well given the extent of the period and the different aspects required in completing the dissertation, or project. This skill will be very beneficial to the researcher particularly once this is utilised in the business world where the ability to manage projects, as well as multi-task, is appreciated. The two points above provided further rationale to the pursuit of the completion of this dissertation, and gave the researcher strong reasons for undertaking the dissertation in addition to the given benefit of completing a requirement for school. CHAPTER 4 LITERATURE REVIEW The issue of performance and risks in issuing IPOs in exchanges has been analysed in various research works and there is a relatively comprehensive research work that can form the basis of further research work. For example, assessments of the performance of IPOs of stock exchanges have been done in a number of exchanges already. One research in particular focused on an assessment of the long-term performance of the IPOs of Europes new stock markets.3 The research works focusing on the issue of IPO performance are expected to continue to be of importance to the academic finance community given the debate which goes on relating to the near-term abnormal returns of IPOs and their long-term underperformance. The focus of this dissertation is a comparison and assessment of the performance and risks of IPOs issued in Chinese and Hong Kong stock exchanges. This research differs in other bodies of academic work in that this specific research issue has not been addressed directly. Certainly, the existing literature and academic research provides a preliminary path and approach in resolving the key research questions defined at the beginning of this dissertation paper. In reviewing the related literature on the assessment of risks and performance of IPOs in Chinese and Hong Kong stock exchanges, a number of consistent themes were noted as predominant in the research works. In order to assess the themes which may have contrasting supporting research, these themes are presented below and form the structure for the rest of this section reviewing the related literature:  · Methods for assessment of IPO performance  · Performance of IPOs  · Risk assessment of IPOs  · Period of assessment  · Chinese and Hong Kong IPOs The points above are the key factors discussed in this section. 4.1 METHODS FOR ASSESSMENT OF IPO PERFORMANCE One of the areas that need to be reviewed is the research methodology that previous research works have utilised in pursuing their research. The related literature has shown that the typical method used in analysing the performance largely relies on the use of descriptive statistics. In some occasions, qualitative assessment are included as part of the research methodology in order to gain greater understanding of the performance and the factors affecting the performance of the IPOs. The research mentioned earlier in this section which focused on an assessment of the long-term performance of the IPOs of Europes new stock markets used both qualitative and quantitative assessments as part of the methodology.5 The research approach was a combination of qualitative assessment (to discuss the rationale for the resulting performance) and quantitative analysis (on the IPO performance and which, as expected, was analysed and presented using descriptive statistics). The research work noted in the introduction highlighting the continued debate on the near-term abnormal returns of IPOs and their long-term underperformance was a research piece focused on the returns of IPOs from the Istanbul Stock Exchange. In this research, the performance of the IPOs was assessed utilising descriptive statistics with a comparison of means (z-test: sample for two means) as part of the statistics tool kit utilised. Clearly, the use of descriptive statistics and statistical tests for significance seems to be the preferred method of analysis for these types of research assessments. The dominant use of descriptive statistics also provides confidence that this is the method that would be most logical for the dissertation in the assessment of performance of the IPOs in the stock exchanges. 4.2 PERFORMANCE OF IPOs Another area focused on in this dissertation is the performance of the IPOs in the Chinese and Hong Kong stock exchanges as well as other regional and global stock exchanges. In terms of IPO performance assessment, one research work focused specifically on bank IPOs and their growth. Interestingly, this and the research work mentioned earlier on IPO performance (Europes new stock markets) both found that long-run post-offering returns were poor when compared to various market benchmarks. This finding was supported by another research whose results were from an analysis of 6,000 NASDAQ IPO stocks. Thus, there seems to be a number of research works that have shown the underperformance of IPOs versus other more established stocks or the market benchmarks. A research paper that focused on this underperformance showed that a reason for the underperformance of IPOs was the high expectations which were linked to the IPOs and which affected the prices paid for these offerings. This result is rather ironic as the high expectations given by investors indicate that these investors expected much higher returns from IPOs versus other stocks that these investors could have invested in. A research work with similar findings on the long-term underperformance of IPOs was done on the UK IPOs from the period 1996 to 1999.9 For this research, the long-term underperformance of the IPOs in the study was considerable versus the market performance. A period of three years was used as the long-term period. The research notes that this underperformance has been seen in a large number of countries where the IPO performance was measured over a number of years to assess its performance. The key factors identified in the research as impacting on the long-term performance of the IPOs were: (1) percentage of equity issued as part of the IPO, and (2) degree of multinationality of a firm issuing the IPO. On the first point, the research finding noted that the greater the percentage of the equity issued for the IPO, the greater the probability of underperformance over the long-term. On the latter point, the research finding was that the greater the multinational component of a firm was, the better the expectation for a long-term performance. Further to the research on UK IPOs, another research work on the UK IPOs but focused on the AIM-listed firms versus those on the main board of the London Stock Exchange showed a similar result in terms of long-term underperformance of IPOs. This research work has an additional finding on the cost of equity that is relevant to the risks faced by firms pursuing an IPO. This finding is discussed in greater detail in a later part on the assessment of risks. The research works with an assessment showing poor long-run returns for IPOs is not unanimous though as opposing performance arguments also exist with IPOs being shown to be undervalued and thus provide good, long-run returns even versus the market. However, the reasons that the results are different for this research work is the adjustment done on the valuation of the IPOs which result in the IPO valuation being markedly different from those considered in the other researches which found poor longrun returns for IPOs. This research work utilised an alternative method with adjustments made on the performance of the IPO stocks. The research work on the Istanbul Stock Exchange highlighted a number of reasons for the performance of the IPOs, particularly the abnormal returns shown in the near-term: overvaluation of IPOs by investors and deliberate under-pricing for the IPO which then rewards the informed investors. The long-term underperformance of IPOs is not shared and accepted universally as other research works exist which shows that this is not the case, at least for the particular market and time period considered in these research works. A research on Malaysian IPOs from 1992 to 1996 showed that these IPOs showed particularly strong growth in stock prices over a three-year period from the issuance. This thus negates the concept of long-term underperformance shown by a number of research works. The difference in results could be attributed to a number of factors which could include differences in the parameters of the research factors related to the IPOs such as, for example, the definition of long-term in the assessment (this Malaysian research study utilised a period of three years to define the long-term). Further evidence of long-term performance contrary to other international evidence is that result from a review of IPO performance in Greece from the period 1993 to 1997, which showed that the IPOs performed much better than the market over the long-term and not just in the near-term for the effects of the abnormal near-term returns. In this research work, the definition for long-term performance was again different as the period of one year was taken for this assessment to reflect the long-term performance of the IPOs. The research piece attributes the difference with international evidence to possibly the legal framework, the institutional arrangements, and the degree of development of the capital markets. To further complicate the current thinking on the performance of IPOs, a research work focused on Germany IPOs from 1977 to 1995 showed varying performances over the long-term with some IPOs resulting in considerable underperformance while other IPOs showed excellent long-term performance.15 The focus of the research was not necessarily the determination of the long-term performance of the IPOs and thus could not be considered as inconclusive. The actual focus of the research work was the determination of the action post-IPO and the ability to determine which of the IPOs would perform better over the longer-term. The research finding was that the key predictor of the long-term performance of an IPO was the subsequent financing activity in the equity market with the firms being able to raise additional funds soon after the IPO slated for out-performance versus other firms which failed to generate further funding. Several reasons have been put forth as supporting the underperformance of IPOs in most markets. A research work which looked at French IPOs but focused on the impact of ownership resulted in findings that ownership had an influential and large impact on long-term performance of the IPOs.16 The reason for this was that at some point, usually a typical long-term period such as three to five years, ownership restriction in terms of selling off stakes would have been lifted. Thus, the sell-off of family or block holdings in IPOs after a long-term period impact negatively on the share price and becomes a large reason for the underperformance of IPOs over the long-term. This finding would seem to be applicable to most firms pursuing IPOs as it would be usually the case that a firm issuing an IPO would have large blocks of holdings controlled by very few entities or personalities. 4.3 RISK ASSESSMENT OF IPOs While a number of research works such as those cited earlier have focused only on the performance of the IPOs, other research works have combined the analysis of the risk and rewards related to IPOs, which would be parallel to the focus that this dissertation is geared to do. One, in particular, focused on the risk and return trade-off for IPOs though, admittedly, there was greater focus on how these issuances were riskassessed.A rather focused look on long-run performance showed that industry parameters, timing of IPO, and industry situation all play in the aftermarket returns of IPOs which, in general, are not favourable. One of the risks identified in a research work on AIM-listed IPOs was the resulting cost of equity. A decision factor for the firms considering pursuing an IPO should be the cost of equity and the research finding on the assessment of AIM-listed stocks showed that, potentially, cost of equity is much greater than that expected with the listing on these stock exchanges.Using this as an analogy to the current issue of issuing an IPO between Chinese and Hong Kong stock exchanges, it is possible that this is a risk faced by the mainland Chinese firms in their decision. 4.4 PERIOD OF ASSESSMENT A factor that needs to be made consistent in the assessment of the performance of the IPOs is the period of assessment. The proper time frame could impact on the performance considerably and in viewing this assessment, it would be important to have the proper time frame from which to consider returns. For example, flipping of IPOs impact the pricing of some IPOs post the offering and affect the returns if taken within a short time frame. There is thus a question of the period defined by near-term as well as long-term performance given different periods taken by researchers in conducting their work. Understandably, this could have been driven by the availability of data of the stock prices. In order to have a proper assessment for this dissertation, it would probably be best to utilise the following time periods: one month for near-term performance, and 3 years for consideration of long-term performance. These seem to be the periods that most of the researchers had utilised though it does differ from some of the period conventions used in other researches. 4.5 CHINESE AND HONG KONG IPOs Despite the existence of numerous research work on the assessment of risks and rewards of IPOs across exchanges globally, there have been limited research works which focus on the Chinese and Hong Kong IPOs of recent years. One recent unpublished work touched on under-pricing and the aftermarket liquidity of Hong Kong IPOS, and found that under-pricing was evident in driving liquidity post-IPOs. A more comprehensive published work on Hong Kong IPOs utilised slightly dated figures (IPOs up to 2002) and thus presents a challenge in the findings concluded.22 Another is dated (published in 1998) but does look at the issue of pricing and aftermarket performance of IPOs with results showing large returns accruing in the long-term for IPOs. Other China-related research work focus on performance post-IPO but refer to operating performance of the firms and not the performance of the share price.One research which looked at short-term and long-term IPO performance in China highlighted a number of differences affecting Chinese stocks: stake that the government has in the firm, the size of the firm, and the options available to Chinese investors. Over the next few years, there will continue to be increased interest in the IPOs of firms in mainland China as these firms seek to tap international investors. In turn, international investors are increasingly interested in investing in the mainland Chinese firms given their typical profitable nature (largely owing to monopoly or large market share status) and the presence these firms have in mainland China that international investors find attractive. The pursuit of the IPO by the mainland Chinese firms is partly driven by the need to diversify ownership risk, particularly for the mainland Chinese firms which are predominantly state-owned enterprises (SOEs). Thus, despite extensive related research, there is still scope to pursue this dissertation as it provides further evidence of the risk and reward assessment of IPOs. CHAPTER 5 RESEARCH METHODOLOGY The approach to the dissertation followed an explanatory research approach. This approach was deemed to be the best approach to address the research questions, particularly with the requirement of discovery of insights and ideas. The research approach relied on both extensive primary and secondary research providing a complementary basis for conducting the assessment and analysis of the issues in the research. This section is structured as follows:  · Research analysis and approach. This part describes the overall research approach utilised in this dissertation and the methods of analysing the information retrieved from primary and secondary research methods.  · Primary research. This discusses the primary research undertaken in this dissertation, including the objectives in the methods used.  · Secondary research. This presents the use of secondary research and the complementary approach to the primary research tools.  · Research limitations. In the conduct of the dissertation research, a number of limitations presented itself which impacted on the results of the dissertation. These are explained in this part.  · Ethical considerations. This part goes through the key ethical considerations in the process of completing the dissertation. 5.1 RESEARCH ANALYSIS AND APPROACH The dissertation was conducted using a problem-solving approach. This methodology was used in assessing the quantitative results from the statistical analysis and also in analysing the results of the in-depth interviews, and secondary research. The dissertation utilised a combination of desktop analysis (the statistical analysis and quantitative assessment of the performance of IPOs in various stock exchanges), input from industry practitioners (the qualitative assessment of risks of the IPOs), and desk research (primarily for the secondary research and in providing further support to the results of the statistical analysis and qualitative assessment). The assessment of the performance of the IPOs was conducted using descriptive statistics as these allowed for an objective comparison of the performance (or returns) of the IPOs. Descriptive statistics was also used to show other relevant trends related to the performance of the IPOs from the Chinese and Hong Kong stock exchanges, and also the comparison versus other regional and global stock exchanges. After the assessment and analysis, and with the preliminary results on-hand, the research findings were tested and reviewed in the ‘market through discussions with other stakeholders to ensure that these research findings were sound and logical. The market review also provided feedback and confirmation of the possible research contribution that the dissertation provides. This has been noted as part of the findings and analysis section. 5.2 PRIMARY RESEARCH The key primary research utilised in this dissertation involved interviews with industry practitioners involved in Chinese and Hong Kong IPOs. The objectives in this primary research method were to: (1) understand the key risks for firms pursuing their firms listing in the Chinese and Hong Kong stock exchanges, and (2) determine the perception of the industry practitioners as to the relative performance of IPOs being done in the Chinese and Hong Kong stock exchanges. The interviews were conducted to get an understanding of the key risks that firms are exposed to by pursuing their IPOs in Chinese and Hong Kong stock exchanges. The use of in-depth interviews was selected as the primary research method as this provided an opportunity for the researcher to gain deeper insights into the issues focused on. It was initially planned that in-depth interviews of various stakeholders in the industry would be pursued in order to have a good breadth and depth in understanding the key risks and to get input from a diverse set of stakeholders. However, the research limitations in terms of timing, access to various stakeholders, and leverage of contacts in the Chinese and Hong Kong financial services sectors provided a hindrance to having an extensive list of industry practitioners included in the primary research. Nevertheless, the researcher was still able to have several in-depth interviews and these provided a good indication of the overall viewpoints currently existing in the industry, particularly related to the risks that exist for firms. 5.3 SECONDARY RESEARCH The secondary research for this dissertation involved two key approaches: (1) statistical analysis of stock price performance of selected IPOs in the Chinese and Hong Kong stock exchanges as well as several regional and global stock exchanges, and (2) desk research to understand the viewpoints currently existing on the performance and risks of IPOs in Chinese and Hong Kong stock exchanges. 5.3.1 Statistical Analysis The first secondary research method involved the quantitative data analysis of the performance of the IPOs in the Chinese and Hong Kong stock exchanges. This analysis effectively supported the assessment the performance of the listing in these stock exchanges to determine if there were differences in the performances of IPOs for these exchanges. The objectives in usin