Performance and capital structure of IPOs in Pakistan from 2000 to 2015

Financial Innovation

Table 5 Determinants of First Day IPOs Underpricing and Aftermarket Long-run IPOs Performance for Public and Private Owned Firms

	First Day IPOs Underpricing		Long-run IPOs Performance
	Dependent variable: First day market adjusted return		Dependent variable: buy and hold abnormal return over 5 years
	Coefficient	t-Statistic	Coefficient	t-Statistic
MAR_1			−1.13***	−3.19
Pub	0.08	0.63	0.82	1.27
M_Volt	−0.37	−1.19	0.16***	2.81
I_Proceeds	−0.05	−1.25	−0.11	−0.68
F_Size	−0.04***	−2.15	−0.02	−0.27
Ret_own	−0.24	−0.76	0.19***	2.53
Risk	0. 14***	2.10	0.16	1.05
Subs	0.04***	2.04	0.06	0.84
Constant	−0.45*	−1.78	−1.28	−1.18
R²	0.48		0.28
F Stat (p value)	0.0000		0.0004

Note: OLS estimation with standard errors adjusted using White’s (1980) heteroscedasticity consistent covariance matrix. ***, **, and * indicate significance at 1, 5, and 10%, respectively