IDEAS home Printed from https://ideas.repec.org/a/bec/imsber/v11y2019i3p1-28.html
   My bibliography  Save this article

Pricing Performance of Cross-listed and Local IPOs: Evidence from Alternative Investment Market

Author

Listed:
  • Abdul Wahid

    (Phd Scholar & Faculty of Management Sciences, Riphah International University, Islamabad.)

  • Shahzad Ahmad Khan

    (Faculty of Management Sciences, Riphah International University, Islamabad.)

  • Muhammad Zubair Mumtaz

    (Assistant Professor at School of Social Sciences and Humanities, National University of Science and Technology (NUST), Islamabad)

Abstract

This paper examines the short-run pricing performance of 238 IPOs listed on the Alternative Investment Market (hereafter referred as AIM) during the period from 2007 to 2016. This study measures the short-run pricing behavior of IPOs over the period of first-thirty trading days and finds that IPOs are underpriced by 12.58% on the first trading day which dilutes to 7.57% on the thirtieth trading day. We also report that the level of short-run pricing performance of newly listed IPOs is higher than cross-listed IPOs as these issues may have more uncertainty which results to generate higher abnormal returns. The results also confirm the evidence of investors’ sentiment, underwriters’ prestige, and signaling hypothesis. In addition, most of the proxies related to ex-ante uncertainty are not robust predictors of short-run performance of cross-listed IPOs.

Suggested Citation

  • Abdul Wahid & Shahzad Ahmad Khan & Muhammad Zubair Mumtaz, 2019. "Pricing Performance of Cross-listed and Local IPOs: Evidence from Alternative Investment Market," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 11(3), pages 1-28, September.
    • Handle: RePEc:bec:imsber:v:11:y:2019:i:3:p:1-28
    DOI: dx.doi.org/10.22547/BER/11.3.1
    as

    Download full text from publisher

    File URL: http://imsciences.edu.pk/files/journals/vol_3_2019/1-New-570-M.A%20.pdf
    Download Restriction: no
    File URL: https://libkey.io/dx.doi.org/10.22547/BER/11.3.1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Short-run Performance; Robust Regression; Cross-listed IPOs; Local IPOs; Alternative Investment Market.;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bec:imsber:v:11:y:2019:i:3:p:1-28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Attaullah Shah (email available below). General contact details of provider: https://edirc.repec.org/data/imspepk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.