The impact of IFRS mandate and institutional governance on underpricing and aftermarket performance of IPO shares in Turkey

Financial Innovation

Table 10 Estimations using clustered standard errors by period and industry

	Dependent variables
	IDR	BHAR-2Y
Panel A: Standard errors are clustered by year
Post	0.024	− 0.757**
	(1.248)	(− 2.274)
Treatment	0.243	− 0.334
	(0.617)	(− 1.177)
IFRS (Post*Treatment)	− 0.065	1.014***
	(− 0.185)	(3.014)
Firm-level controls	Included	Included
Market-level Controls	Included	Included
Other Controls	Included	Included
YE and IE	Included	Included
Observations	188	137
Adj. R²	0.039	0.389
Number of clusters	20	18
Panel B: Standard errors are clustered by industry
Post	0.024	− 0.757**
	(1.350)	(− 1.792)
Treatment	0.243	− 0.334
	(0.661)	(− 0.810)
IFRS (Post*Treatment)	− 0.077	1.014**
	(− 1.422)	(2.310)
Firm-level controls	Included	Included
Market-level Controls	Included	Included
Other Controls	Included	Included
YE and IE	Included	Included
Observations	188	137
Adj. R²	0.039	0.389
Number of clusters	18	17
Panel C: Standard errors are clustered by year and industry
Post	0.024	− 0.757**
	(1.074)	(− 2.180)
Treatment	0.243	− 0.334
	(0.493)	(− 0.978)
IFRS (Post*Treatment)	− 0.077	1.014***
	(− 1.029)	(2.769)
Firm-level controls	Included	Included
Market-level Controls	Included	Included
Other Controls	Included	Included
YE and IE	Included	Included
Observations	188	137
Adj. R²	0.039	0.389
Number of clusters	90	80

The table presents the estimation results for the two different dependent variables, including initial day returns (IDR), and buy and hold abnormal returns for a 2-years investment strategy (BHAR2Y). The estimation period is from 1998 to 2019. 2005 is excluded to avoid the probable impact of confounding forces during the transition year. Detailed definitions of variables are provided in Table 1. Numbers in parentheses are t-statistics recorded according to different clustering, i.e. by year (in Panel A), by industry (in Panel B), and by both industry and year (in Panel C). ***, and ** indicate statistical significance at 1%, and 5% level, respectively