Advanced search ?

Object

IPO underpricing phenomenon on the karachi stock exchange
Download

Title: IPO underpricing phenomenon on the karachi stock exchange

Creator:

Sohail Khalid, Muhammad ; Raheman, Abdul ; Zakaria, Muhammad ; Farhat, Rehana

Description:

Argumenta Oeconomica, 2018, Nr 2 (41), s. 225-255

Abstrakt:

In this study the risk-adjusted performance of IPO firms listed on the KSE from 2000 to 2012 is analyzed. The objective is to provide insights of the underpricing (first trading day) of IPOs and to find out the determinants of underpricing in the light of asymmetric information and signaling theories. The results indicate that underpricing prevails on the KSE. The level of underpricing with regard to the marked adjusted model is found to be 28.28 percent for the full sample of 83 IPOs, which shows that investors can make a market adjusted profit of 28.28 percent by investing in new issues of IPO firms. The profit opportunity for the day traders is also observed. The year-wise analysis of the level of underpricing shows that the overall amount of level of underpricing decreased over the succeeding years. Furthermore, the level of underpricing is observed in all sectors except equity investment instruments, technology hardware and equipment and personal goods. The risk adjusted performance of IPO firms is also measured with the help of five models by using matched firm techniques. The level of underpricing is observed to be 39.64 percent for the market adjusted model, 42.63 percent for market model, 42.31 percent for CAPM, 42.84 percent for the Fama-French three-factor model and 42.99 percent for the four-factor model. The results indicate that the choice of model does not matter while measuring the risk adjusted returns of IPO firms on the first trading day.

Publisher:

Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu

Place of publication:

Wrocław

Date:

2018

Resource Type:

artykuł

Resource Identifier:

oai:dbc.wroc.pl:52794

Language:

eng

Relation:

Argumenta Oeconomica, 2018, Nr 2 (41)

Rights:

Wszystkie prawa zastrzeżone (Copyright)

Access Rights:

Dla wszystkich w zakresie dozwolonego użytku

Location:

Uniwersytet Ekonomiczny we Wrocławiu

Group publication title:

Argumenta Oeconomica

Format:

application/pdf

Subject and keywords:

tracking error matched firms underpricing IPOs KSE

Object collections:

Last modified:

May 26, 2022

In our library since:

Nov 13, 2018

Number of object content hits:

447

Number of object content views in PDF format

440

All available object's versions:

https://dbc.wroc.pl/publication/85588

Show description in RDF format:

RDF

Show description in OAI-PMH format:

OAI-PMH

Edition name Date
IPO underpricing phenomenon on the karachi stock exchange May 26, 2022

Similar

Argumenta Oeconomica
Argumenta Oeconomica

Underpricing of private equity/venture capital backed IPOs. Do they differ from other offers?

Sieradzki, Rafał Zasępa, Piotr

2016
artykuł
17-th AMSE. Applications of Mathematics in Economics. International Scientific Conference: Poland, 27-31 Agust, 2014. Conference Proceedings Full Text Papers
17-th AMSE. Applications of Mathematics in Economics. International Scientific Conference: Poland, 27-31 Agust, 2014. Conference Proceedings Full Text Papers

Rebalancing Issues in Tracking Error Variance Minimization

Boďa, Martin Kanderová, Mária Rusnak, Zofia. Redakcja Zmyślona, Beata. Redakcja

2014
materiały konferencyjne
Argumenta Oeconomica
Argumenta Oeconomica

Constructing trade openness index for Pakistan

Zakaria, Muhammad

2012
artykuł
Argumenta Oeconomica
Argumenta Oeconomica

Openness–growth nexus in Pakistan: a macro–econometric analysis

Zakaria, Muhammad Ahmed, Eatzaz

2013
artykuł
Argumenta Oeconomica
Argumenta Oeconomica

Stock prices and macroeconomic variables nexus in South Asian countries

Zakaria, Muhammad Junyang, Xi

2016
artykuł
Argumenta Oeconomica
Argumenta Oeconomica

The cyclicality of fiscal policy in South Asia

Zakaria, Muhammad Junyang, Xi

2015
artykuł
Argumenta Oeconomica
Argumenta Oeconomica

IPOs – not so much money on the table. The cost compensation hypothesis.

Zaremba, Adam Kamiński, Karol

2011
artykuł
Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu
Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu

Determinanty underpricingu w Polsce i na innych wybranych rynkach wschodzących

Lizińska, Joanna Czapiewski, Leszek

2015
artykuł
More
×

Citation

Citation style:

Contact details

Address

Wrocław University of Science and Technology (Coordinator)
Library of Wrocław University of Science and Technology
Wybrzeże Wyspiańskiego 27
50-370 Wrocław, Poland

Phone

(+48) 71-320-38-30
(+48) 71-320-47-50

E-Mail

bc@pwr.edu.pl

Visit us!

https://biblioteka.pwr.edu.pl/

This page uses 'cookies'. More information