Financial and Operating Performance of Initial Public Offerings in Pakistan

Authors

  • Amir Rafique COMSATS University Islamabad, Pakistan
  • Muhammad Umer Quddoos Bahauddin Zakariya University, Multan. Pakistan.
  • Irfan Khadim SZABIST Islamabad, Pakistan
  • Muhammad Tariq Bahauddin Zakariya University, Multan. Pakistan.

DOI:

https://doi.org/10.52131/joe.2020.0101.0014

Keywords:

Initial Public Offering, Operating Performance, Investor Demand, Financial Performance

Abstract

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.

Author Biographies

Amir Rafique, COMSATS University Islamabad, Pakistan

Department of Management Sciences

Muhammad Umer Quddoos, Bahauddin Zakariya University, Multan. Pakistan.

Department of Commerce

Irfan Khadim, SZABIST Islamabad, Pakistan

Department of Management Sciences

Muhammad Tariq, Bahauddin Zakariya University, Multan. Pakistan.

Department of Statistics

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Published

2020-06-30

How to Cite

Rafique, A., Quddoos, M. U., Khadim, I., & Tariq, M. (2020). Financial and Operating Performance of Initial Public Offerings in Pakistan. IRASD Journal of Economics, 2(1), 35–42. https://doi.org/10.52131/joe.2020.0101.0014