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Financial Innovation

Table 4 Average underpricing and Aftermarket performance of IPO shares

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

 

IDR

n

BHAR2Y

n

1998–2019

6.501***

(8.473)

188

 − 23.7***

(− 2.977)

137

Pre-IFRS

7.198***

(5.574)

77

 − 42.28***

(− 2.996)

51

Post-IFRS

6.018***

(6.380)

111

 − 12.5*

(− 1.557)

86

Mean difference test between sub-periods

 − 1.180

(0.756)

 

 − 23.7***

(2.351)

 
  1. IDR column represents initial-trading-day returns, calculated as the percent difference between the offering price and first trading day closing price, adjusted to the movements in the general market index (i.e. BIST100). BHAR 1-year, and BHAR 2-years represent market adjusted buy-and-hold abnormal returns for different investment periods. Numbers in parentheses are t-statistics adjusted according to Newey and West (1987). Average BHAR for two-year investment strategy was calculated based on the availability of aftermarket return data and therefore, sample size may vary. ***, and * indicate statistical significance at 1% and 10% level, respectively. Numbers in parentheses are t-statistics from the mean-difference tests
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