An examination of short-run performance of IPOs using Extreme Bounds Analysis

This paper estimates the short-run performance of IPOs issued on the Karachi Stock Exchange in Pakistan. The present study extends the existing literature concentrating on the degree of underpricing over a 3-month period lasting from the listing date to the 3-month anniversary showing significant ev...

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Autores principales:	Mumtaz,Muhammad Zubair, Smith,Zachary A, Ahmed,Ather Maqsood
Lenguaje:	English
Publicado:	Universidad de Chile. Departamento de Economía 2016
Materias:	Initial public offerings underpricing short-run extreme bounds analysis wealth relative three-month
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862016000100004
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spelling	oai:scielo:S0718-528620160001000042016-07-22An examination of short-run performance of IPOs using Extreme Bounds AnalysisMumtaz,Muhammad ZubairSmith,Zachary AAhmed,Ather Maqsood Initial public offerings underpricing short-run extreme bounds analysis wealth relative three-month This paper estimates the short-run performance of IPOs issued on the Karachi Stock Exchange in Pakistan. The present study extends the existing literature concentrating on the degree of underpricing over a 3-month period lasting from the listing date to the 3-month anniversary showing significant evidence of IPO underpricing. The analyses support the investors’ sentiment and underwriters’ prestige hypothesis but not ex-ante uncertainty. The EBA technique has been used to examine fifteen explanatory variables of IPO underpricing. The study finds that the aftermarket risk level of the IPO, the oversubscription ratio, the offer price, the return on assets, post issue promoters’ holding and size of the firm are six robust determinants of IPO underpricing.info:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.43 n.1 20162016-06-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862016000100004en10.4067/S0718-52862016000100004
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Initial public offerings underpricing short-run extreme bounds analysis wealth relative three-month
spellingShingle	Initial public offerings underpricing short-run extreme bounds analysis wealth relative three-month Mumtaz,Muhammad Zubair Smith,Zachary A Ahmed,Ather Maqsood An examination of short-run performance of IPOs using Extreme Bounds Analysis
description	This paper estimates the short-run performance of IPOs issued on the Karachi Stock Exchange in Pakistan. The present study extends the existing literature concentrating on the degree of underpricing over a 3-month period lasting from the listing date to the 3-month anniversary showing significant evidence of IPO underpricing. The analyses support the investors’ sentiment and underwriters’ prestige hypothesis but not ex-ante uncertainty. The EBA technique has been used to examine fifteen explanatory variables of IPO underpricing. The study finds that the aftermarket risk level of the IPO, the oversubscription ratio, the offer price, the return on assets, post issue promoters’ holding and size of the firm are six robust determinants of IPO underpricing.
author	Mumtaz,Muhammad Zubair Smith,Zachary A Ahmed,Ather Maqsood
author_facet	Mumtaz,Muhammad Zubair Smith,Zachary A Ahmed,Ather Maqsood
author_sort	Mumtaz,Muhammad Zubair
title	An examination of short-run performance of IPOs using Extreme Bounds Analysis
title_short	An examination of short-run performance of IPOs using Extreme Bounds Analysis
title_full	An examination of short-run performance of IPOs using Extreme Bounds Analysis
title_fullStr	An examination of short-run performance of IPOs using Extreme Bounds Analysis
title_full_unstemmed	An examination of short-run performance of IPOs using Extreme Bounds Analysis
title_sort	examination of short-run performance of ipos using extreme bounds analysis
publisher	Universidad de Chile. Departamento de Economía
publishDate	2016
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862016000100004
work_keys_str_mv	AT mumtazmuhammadzubair anexaminationofshortrunperformanceofiposusingextremeboundsanalysis AT smithzacharya anexaminationofshortrunperformanceofiposusingextremeboundsanalysis AT ahmedathermaqsood anexaminationofshortrunperformanceofiposusingextremeboundsanalysis AT mumtazmuhammadzubair examinationofshortrunperformanceofiposusingextremeboundsanalysis AT smithzacharya examinationofshortrunperformanceofiposusingextremeboundsanalysis AT ahmedathermaqsood examinationofshortrunperformanceofiposusingextremeboundsanalysis
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An examination of short-run performance of IPOs using Extreme Bounds Analysis

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