الفهرس 
Ipos-underpricing and corporate governance Evidence from some selected emerging markets
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Abstract
Initial public offerings (IPO) tend to generate first-day abnormal returns compared to
the rest of the market, and thus creating the well-documented IPO underpricing
phenomenon. This thesis employs both the ordinary least squares (OLS) method and the
quantile regression (QR) technique to investigate the relevance of information
asymmetry theories, behavioural models and institutional explanations to cross-section
variation of IPOs’ first-day returns in a sample of 710 issues across seven emerging
markets between 2013 and 2017. Determinants of IPO underpricing include firm, issue,
market, and country-specific variables. Understanding influences of IPO underpricing
across countries and firms has important implications for issuing companies, investors,
and policymakers. Underpricing varies across the employed countries with a positive
average of 78%, with $238 billion money left on the table. According to the OLS results,
independent variables explain 26% of the variation of IPOs’ first-day returns. Findings
show that employing QR is crucial given the non-normality of the data and because each
quantile is associated with a different effect of explanatory variables. Findings reveal the
importance of country-specific variables (e.g., corruption control and the protection of
private property) in explaining variation of cross-sectional IPO underpricing and, hence,
confirming the institutional explanations of underpricing. The pre-IPO market
sentiment significantly affects IPOs’ first-day returns, confirming the investor sentiment
hypothesis. The certification hypothesis, suggesting that employing prestigious
underwriters are associated with smaller levels of underpricing, is not validated.
Moreover, the ex-ante uncertainty hypothesis holds true, to some extent, in explaining
underpricing in the employed sample.