The Variability of IPO Issuance: Evidence from Pakistan Stock Exchange

Waqas Mehmood, Rasidah Mohd-Rashid and Abd Halim Ahmad

Global Business Review, 2023, vol. 24, issue 5, 1025-1040

Abstract: The present study intends to explore the inducing factors for going public in the emerging market of Pakistan from 2000 to 2018. This study used ordinary least square (OLS), stepwise regression, robust regression and quadratic model to achieve the objectives. The findings revealed that inflation, gross domestic product (GDP) and political stability were positively significant, whereas lending interest rate and underpricing were negatively significant in explaining the number of initial public offerings in Pakistan, as supported by the empirical evidence. Furthermore, the weak macroeconomic factors indicated unfavourable development in the capital market of Pakistan. Concurrently, low confidence for both potential issuers and investors could be seen in fewer IPO activities due to the country’s weak macroeconomic indicators.

Keywords: Initial public offerings; inflation; GDP; political stability; underpricing; Pakistan market (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:24:y:2023:i:5:p:1025-1040

DOI: 10.1177/0972150920929198

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