Open AccessFinancial and Operating Performance of Initial Public Offerings in Pakistan
Author(s) -
Amir Rafique,
Muhammad Umer Quddoos,
Irfan Khadim,
Muhammad Tariq
Publication year - 2020
Publication title -
irasd journal of economics
Language(s) - English
Resource type - Journals
eISSN - 2709-6742
pISSN - 2709-6734
DOI - 10.52131/joe.2020.0101.0014
Subject(s) - initial public offering , underwriting , business , stock exchange , portfolio , finance , leverage (statistics) , monetary economics , stock (firearms) , financial system , economics , mechanical engineering , machine learning , computer science , engineering
This study examines the relationship between prior IPO demands and post-IPO financial and operating performance of ?rms listed in the Pakistan Stock Exchange. A sample of 51 listed firms, covering a period of ten years, is examined. Predominantly, the investors' demand has been analyzed from two perspectives including oversubscription (a high demand from investors as compared to shares offered by firms) and under subscription (a low demand from investors as compared to shares offered by the firm). Multiple regression analysis has been applied, where the findings revealed that investors demand IPO bring no significant change in the financial and operating performance of IPO firms. Moreover, the analysis reveals that firm size, issue size, and leverage bring no notable change in the operating performance of IPO firms. The findings are important for the investors, portfolio managers, and underwriters.