Open AccessLong Run Performance of Initial Public Offerings (IPOs) in Pakistan
Author(s) -
Zahra Batool
Publication year - 2018
Publication title -
business and management horizons
Language(s) - English
Resource type - Journals
ISSN - 2326-0297
DOI - 10.5296/bmh.v6i2.14195
Subject(s) - initial public offering , profitability index , leverage (statistics) , business , sample (material) , monetary economics , stock (firearms) , econometrics , accounting , economics , finance , statistics , mathematics , engineering , mechanical engineering , chemistry , chromatography
This study is aimed to analyze long run performance of initial public offerings (IPOs) in Pakistan by taking the sample of 15 firms for the period of 2006 to 2011. We took secondary data for our research from KSE, SBP, and Brecorder. Stock returns of IPO firms are considered as dependent variables and firm size, firm age, profitability and leverage ratios are considered as explanatory variables for the long run performance of IPOs. Previous literature on IPOs indicates that IPOs underperform in the long run. Firm’s size and profitability have some significant positive correlation with the IPOs long run performance. All the findings of this research paper depend upon the background of the different industry sectors, the perspective of the study and sample distribution. And the Leverage ratio and Age of the firms are negatively correlated with the long run performance of the IPOs.