The impact of prestigious attorneys on IPO withdrawal in the global primary market

Jamaani, Fouad; Alidarous, Manal

doi:10.1186/s40854-023-00555-6

Financial Innovation

Table 6 Descriptive analysis

From: The impact of prestigious attorneys on IPO withdrawal in the global primary market

	All Countries	Australia	Brazil	Canada	China	Denmark	France	Germany
(A)
Observations	24,312	1957	185	2155	2817	80	761	832
Withdrawn IPOs	0.145	0.12	0.32	0.07	0.21	0.10	0.07	0.09
Prestigious attorney	0.16	0.14	0.51	0.07	0.35	0.08	0.05	0.05
IPO capital sold	0.14	0.22	0.04	0.19	0.17	0.18	0.07	0.06
Technology firm	0.11	0.07	0.04	0.06	0.07	0.17	0.18	0.20
Integer offer price	0.69	0.23	0.77	0.21	0.39	0.83	0.51	0.74
Above range offer price	0.03	0.01	0.02	0.01	0.01	0.01	0.01	0.01
Size of offering (U.S Million)	$108	$48	$316	$26	$144	$187	$170	$174
Ratio of institutional participation	0.19	0.06	0.01	0.01	0.11	0.01	0.29	0.01
Hot IPO market	0.39	0.43	0.53	0.44	0.29	0.34	0.35	0.22
Volume of IPO listing	51	61	14	55	155	10	16	10
IPO discount	0.36	0.15	0.04	0.58	0.57	0.11	− 0.02	0.19
Financial leverage	3.61	2.82	5.15	1.39	2.52	3.24	5.39	3.55
Profitability	0.18	0.17	0.16	0.06	0.25	0.24	0.18	0.17
Performance	0.05	− 0.28	0.03	− 0.26	0.09	− 0.10	− 0.05	− 0.09
Firm corporate governance	8	8	10	4	10	7	4	4
Inflows of foreign direct investment	0.03	0.02	0.03	0.03	0.03	0.02	0.02	0.02
Interest rate	0.10	0.04	0.24	0.13	0.04	0.09	0.09	0.12
Growth of gross domestic product	0.04	0.02	0.04	0.02	0.08	0.02	0.02	0.02
Inflation rate	0.03	0.03	0.06	0.02	0.03	0.02	0.02	0.02
English common law origin	0.53	1	0	1	0	0	0	0
French civil law origin	0.06	0	1	0	0	0	1	0

	Greece	India	Indonesia	Italy	Japan	Mexico	Poland	Russia
(B)
Observations	323	1027	313	344	1992	56	790	93
Withdrawn IPOs	0.22	0.17	0.06	0.23	0.02	0.11	0.10	0.43
Prestigious attorney	0.05	0.19	0.04	0.16	0.04	0.13	0.05	0.31
IPO capital sold	0.03	0.18	0.14	0.15	0.08	0.07	0.14	0.12
Technology firm	0.07	0.11	0.02	0.08	0.14	0.00	0.09	0.03
Integer offer price	0.77	0.98	0.97	0.61	0.98	0.55	0.51	0.79
Above range offer price	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01
Size of offering (U.S Million)	$348	$50	$49	$241	$85	$216	$32	$226
Ratio of institutional participation	0.01	0.11	0.07	0.31	0.17	0.01	0.14	0.01
Hot IPO market	0.54	0.36	0.34	0.36	0.42	0.34	0.46	0.50
Volume of IPO listing	19	131	51	12	73	4	90	4
IPO discount	0.24	0.16	0.55	0.08	0.59	0.05	0.27	0.24
Financial leverage	2.28	2.63	7.52	3.35	2.79	5.23	2.14	4.90
Profitability	0.06	0.3	0.28	0.16	0.26	0.12	0.16	0.08
Performance	0.12	0.04	0.03	− 0.04	0.02	0.02	− 0.01	0.07
Firm corporate governance	3	8	5	6	8	12	3	8
Inflows of foreign direct investment	0.01	0.02	0.02	0.02	0.01	0.03	0.03	0.03
Interest rate	0.15	0.16	0.08	0.13	0.16	0.09	0.06	0.03
Growth of gross domestic product	0.03	0.06	0.05	0.02	0.02	0.04	0.05	0.05
Inflation rate	0.03	0.06	0.06	0.02	0.13	0.07	0.03	0.07
English common law origin	0	1	0	0	0	0	0	0
French civil law origin	1	0	0	1	0	1	0	1

	Saudi Arabia	South Africa	South Korea	Sweden	Turkey	United Kingdom	United States
(C)
Observations	84	276	1275	287	229	2061	6375
Withdrawn IPOs	0.09	0.04	0.04	0.10	0.30	0.10	0.23
Prestigious attorney	0.25	0.04	0.03	0.04	0.05	0.12	0.23
IPO capital sold	0.28	0.07	0.08	0.17	0.13	0.20	0.10
Technology firm	0.01	0.10	0.16	0.17	0.03	0.11	0.13
Integer offer price	0.99	0.98	0.96	0.76	0.44	0.95	0.89
Above range offer price	0.01	0.01	0.08	0.01	0.01	0.01	0.11
Size of offering (U.S Million)	$299	$52	$45	$76	$70	$119	$130
Ratio of institutional participation	0.07	0.08	0.47	0.01	0.28	0.07	0.10
Hot IPO market	0.35	0.29	0.44	0.23	0.44	0.46	0.39
Volume of IPO listing	21	9	117	13	63	53	150
IPO discount	1.2	1.13	0.42	0.09	0.04	0.16	0.17
Financial leverage	1.89	3.05	2.69	2.40	3.57	3.66	5.83
Profitability	0.20	0.21	0.31	0.16	0.02	0.38	0.12
Performance	0.03	− 0.30	− 0.09	− 0.23	− 0.09	− 0.12	0.09
Firm corporate governance	4	6	4	5	4	5	13
Inflows of foreign direct investment	0.05	0.02	0.02	0.03	0.03	0.04	0.02
Interest rate	0.03	0.13	0.05	0.10	0.06	0.08	0.14
Growth of gross domestic product	0.02	0.02	0.05	0.02	0.06	0.02	0.02
Inflation rate	0.04	0.03	0.03	0.02	0.06	0.02	0.03
English common law origin	0	1	0	0	0	1	1
French civil law origin	0	0	0	0	0	0	0

(A), (B), (C) Withdrawn IPOs have a value of 1 if the IPO is withdrawn and 0 otherwise. Prestigious attorneys are classified as a binary variable 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. IPO capital sold refers to the percentage of outstanding shares offered by IPO owners at the time of being offered to new investors. Technology firm is a binary variable that equals one if the issuing corporation is categorized as a technology company; otherwise, it equals zero. Integer offer price is a categorical variable, it has a value of one if the offer price of IPO is an integer and a value of zero otherwise. Above range offer price 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. Size of offering 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. Ratio of institutional participation is the proportion of institutional investors to total IPO participants, which includes both institutional and retail investors. Hot IPO market 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 volume of IPO listing calculates the current number of IPOs listed in each country and year. IPO discount is the percentage of the offer price to the IPO's first day closing price. Financial leverage is the company's equity-to-liabilities ratio. It shows the company's offering leverage. Profitability is the ratio of the total dividends distributed to shareholders to net income at the time of the offering. Performance is the initial public offering common equity rate of return. Firm corporate governance is the total number of independent directors registered at the time of offering. Inflows of foreign direct investment is a time series index from 1995 to 2019 that shows net investment inflows as a proportion of the GDP. Interest rate 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. Growth of gross domestic product is a 1995-2019 time series index that shows GDP per capita growth. The inflation rate tracks yearly consumer price inflation from 1995 to 2019. English common law origin 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. French civil law origin 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

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