Table 1 Definitions of variables
From: The impact of prestigious attorneys on IPO withdrawal in the global primary market
Variables | Description | Source of data |
|---|---|---|
Dependent variable | ||
Withdrawn IPOs | It has a value of 1 if the IPO is withdrawn and 0 otherwise | Bloomberg New Issue Database (BNID) |
Main variable | ||
Prestigious attorneys | This is a binary variable created through categorization. If the IPO company's attorney is among the top 100 worldwide registered law firms by market share in the BNID, this variable is one. Otherwise, it is zero | BNID |
IPO firm-specific variables | ||
IPO capital sold | It refers to the percentage of outstanding shares offered by IPO owners at the time of being offered to new investors | BNID |
Technology firm | It is a binary variable that equals one if the issuing corporation is categorized as a technology1 company; otherwise, it equals zero | BNID |
Integer offer price | A categorical variable, it has a value of one if the offer price of IPOÂ is an integer and a value of zero otherwise | BNID |
Above range offer price | It is a categorical variable equal to a value of one if the IPO's offering amount rises above the underwriter's pricing range and zero otherwise | BNID |
Size of offering | It is the total amount of payment received by each IPO company, calculated by multiplying the number of stocks offered by the offer price in US dollars | BNID |
Ratio of institutional participation | It is the proportion of institutional investors to total IPO participants, which includes both institutional and retail investors | BNID |
IPO market-specific variables | ||
Hot IPO market | It is a dichotomous variable with a value of one if this IPO is listed in a year during which the total number of listings exceeds the average number of listings; otherwise, it has a value of 0 | The World Bank2 (TWB) |
Volume of IPO listing | It calculates the current number of IPOs listed in each country and year | TWB |
IPO discount | It is the percentage of the offer price to the IPO's first day closing price | BNID |
IPO firm accounting ratio variables | ||
Financial leverage | It is the company's equity-to-liabilities ratio. It shows the company's offering leverage | BNID |
Profitability | It is the ratio of the total dividends distributed to shareholders to net income at the time of the offering | BNID |
Performance | It is the initial public offering common equity rate of return | BNID |
IPO firm corporate governance variable | ||
Firm corporate governance | It is the total number of independent directors registered at the time of offering | BNID |
Macroeconomic variables | ||
Inflows of foreign direct investment | It is a time series index from 1995 to 2019 that shows net investment inflows as a proportion of the GDP | TWD |
Interest rate | It covers the period 1995 through to 2019 and interest charges on government borrowing to local and foreign entities, such as long-term mortgages, securities, and other treasury bonds | TWD |
Growth of gross domestic product | It is a 1995–2019 time series index that shows GDP per capita growth | TWD |
Inflation rate | It tracks yearly consumer price inflation from 1995 to 2019 | TWD |
Legal origin variables | ||
English common law origin | It is a categorical variable that equals one if the IPO is offered in an English common law jurisdiction and zero otherwise. Australia, South Africa, the United Kingdom, and the United States are nations that inherited the English common law tradition | Lin et al. (2013) |
French civil law origin | It is a categorical variable with a value of 1 if the IPO is being issued in a French civil law jurisdiction and 0 otherwise. France, Brazil, Greece, Italy, Mexico, and Russia are among the nations which inherited the civil law tradition | Lin et al. (2013) |
Dummies | It is a dichotomous variable that compensates for the impacts of year, country, and industry effects | Self-constructed variable |