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Financial Innovation

Table 5 The impact of IFRS mandate and institutional quality on average underpricing

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

 

Dependent variables

IDR

BHAR2Y

Post

0.024

 − 0.757**

 

(0.883)

(− 2.262)

Treatment

0.243

 − 0.334

 

(0.392)

(− 0.994)

IFRS (Post*Treatment)

 − 0.077

1.014***

 

(− 0.886)

(2.973)

Firm-level controls

  

Size

 − 0.005

 − 0.021

 

(− 0.923)

(− 0.904)

Age

 − 0.010

0.095

 

(− 0.859)

(1.389)

Offer Rate

 − 0.003

 − 0.003

 

(− 0.385)

(− 0.829)

ROA

 − 0.026***

 − 0.040

 

(− 2.850)

(− 0.209)

Proceeds

0.009

 − 0.058

 

(0.353)

(− 0.582)

Leverage

 − 0.005

0.008

 

(− 0.993)

(0.352)

Market-level Controls

  

BIST100

 − 0.007**

0.059***

 

(− 1.853)

(3.171)

VOL

0.040

 − 0.086

 

(1.035)

(− 0.647)

HOT

0.039

 − 0.701***

 

(0.799)

(− 4.010)

Institutional

 − 0.003

 − 0.046

 

(− 0.117)

(− 0.356)

Bull dummy*Retail

0.056***

 − 0.004

 

(3.064)

(− 0.052)

Prestige

 − 0.001

 − 0.023

 

(− 0.047)

(− 0.225)

Intercept

0.001

0.355

 

(1.278)

(0.417)

YE and IE

Included

Included

Observations

188

137

Adj. R2

0.039

0.389

Prob. of F-Statistics

0.256

0.000

  1. The table presents the estimation results for the two 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 adjusted according to Newey and West (1987). *** and ** indicate statistical significance at 1%, and 5% level, respectively
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