Table VII.

Signaling variables and IPO initial returns in the common and civil law countries

Common lawCivil lawGerman civil lawScandinavian civil lawFrench civil law
M1M2M3M4M5
LnUwR−0.033**−2.589−0.041***−5.2741.739−0.007−0.001−1.929−0.129***−3.989
AudR−0.047***−5.619−1.268***−2.7751.308−0.051−0.001−1.668−5.415***−3.338
LnORetn−0.070***−3.1445.921***4.118−0.004−0.525−0.012−0.7230.174***6.416
LnFirm age−0.001−0.035−0.01100−0.723−0.002−0.270−0.160***−14.280−0.173***−5.270
LnFirm size−0.047***−5.619−0.000**−2.113−0.000−1.853−0.000−1.996−0.000***−1.929
MCon6.664***10.2103.403***3.2588.278***7.4338.735***18.1002.632***2.577
Year dummiesYesYesYesYesYes
Country dummiesYesYesYesYesYes
Adjusted R20.190.150.180.180.16
Observation354626362024228384

Notes:

Standard errors are adjusted for heteroskedasticity, using the White’s test;

**significant at the 5 per cent level;

***significant at the 1 per cent level; LnUwR is the natural log of Underwriters’ reputation calculated based on Megginson-Weiss underwriter market share measure; AudR represents Auditor’s reputation – big-4 versus non-big-4; LnORtn measures the natural log of ownership retention. LnFS represents natural log of Firm Size and LnFA is the natural log of Firm Age. MCon refers to the weighted average of market returns three months prior to listing

[ViewLarge]
This Feature Is Available To Subscribers Only

or Create an Account

Close subscription notice
Close access options