Value Relevance of Accounting Information of Stock Returns with the Moderating Role of Firm’s Ownership Structure: A Case Study of Initial Public Offerings in Pakistan

Zeshan Jalil Ghazi, Dr. Waleed Khalid and Dr. Abdul Rasheed
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Zeshan Jalil Ghazi: PHD Scholar, Institute of Business Administration, Khwaja Fareed University of Engineering and Information Technology (KUEIT), Rahim Yar Khan, Pakistan
Dr. Waleed Khalid: Assistant Professor, Institute of Business Administration, KFUEIT, Rahim Yar Khan, Pakistan
Dr. Abdul Rasheed: Assistant Professor, Institute of Business Administration, KFUEIT, Rahim Yar Khan, Pakistan

Bulletin of Business and Economics (BBE), 2024, vol. 13, issue 2, 412-417

Abstract: This study investigates the effect of VRAI on stock returns moderating the role of ownership structure between accounting information variables and stock returns. The study used the data of 92 firms conducting initial public offerings (IPOs) registered on the Pakistan Stock Exchange from 2000 to 2022. The study found that EPS, CEPS and book value are positive and significant factors in the stock returns of firms during IPOs. However, the study found that the influence of variables NI, CNI and DPS on SR is positive but statistically insignificant. Similarly, the study also found that ownership structure is positively and significantly related to stock returns during IPOs. The moderation analysis shows that the ownership structure significantly moderates the relationship between EPS and stock returns, CEPS and stock returns and BV and stock returns. Keeping in view the study outcomes, it is concluded that accounting information variables are key to influencing the stock returns of firms during IPOs. Similarly, ownership structure plays an imperative role in moderating the relationship between accounting information variables and stock returns during firms conducting initial public offerings.

Keywords: Accounting Information; Initial Public Offerings; Ownership Structure; Stock Returns (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:13:y:2024:i:2:p:412-417

DOI: 10.61506/01.00345

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