Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market

This study investigates how government ownership (state-owned IPOs) and the political regime affect the flipping of IPO shares, as well as the moderating impact of investor demand on the association between the political regime and flipping activity. Ordinary least square was employed to investigate...

Full description

Bibliographic Details
Published in:SAGE OPEN
Main Authors: Anwar, Ayesha; Mohd-Rashid, Rasidah; Che-Yahya, Norliza; Bouteraa, Mohamed; Chekima, Brahim
Format: Article
Language:English
Published: SAGE PUBLICATIONS INC 2024
Subjects:
Online Access:https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001347556400001
author Anwar
Ayesha; Mohd-Rashid
Rasidah; Che-Yahya
Norliza; Bouteraa
Mohamed; Chekima
Brahim
spellingShingle Anwar
Ayesha; Mohd-Rashid
Rasidah; Che-Yahya
Norliza; Bouteraa
Mohamed; Chekima
Brahim
Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market
Social Sciences - Other Topics
author_facet Anwar
Ayesha; Mohd-Rashid
Rasidah; Che-Yahya
Norliza; Bouteraa
Mohamed; Chekima
Brahim
author_sort Anwar
spelling Anwar, Ayesha; Mohd-Rashid, Rasidah; Che-Yahya, Norliza; Bouteraa, Mohamed; Chekima, Brahim
Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market
SAGE OPEN
English
Article
This study investigates how government ownership (state-owned IPOs) and the political regime affect the flipping of IPO shares, as well as the moderating impact of investor demand on the association between the political regime and flipping activity. Ordinary least square was employed to investigate the impact of government ownership and political regime on the flipping of IPO shares. The data set consists of 95 IPO firms listed on the Pakistan Stock Exchange (PSX) during the period of January 2000 to December 2019. The findings of this study reveal that government ownership and a political regime have a positive influence on the flipping of IPO shares, demonstrating the quality that creates liquidity in Pakistan's IPO market. Furthermore, in Pakistan, investor demand has been reported to moderate the association between the political regime and IPO flipping activity. This research offers valuable insights that may result in abnormal trading behavior or flipping immediately after listing. Likewise, state-owned IPOs and the political regime appear to be more appealing to investors, signaling the firms' high quality, causing in increased demand and higher levels of flipping. As a result, the government and regulators may devise policies to control unusual trading, ensuring that government investments in the capital market are successful and also that the government's economic and political objectives are met. Moreover, this research is critical for investors and issuers making investment decisions.JEL Classification: G12, G18, G32.
SAGE PUBLICATIONS INC
2158-2440

2024
14
4
10.1177/21582440241260962
Social Sciences - Other Topics
gold
WOS:001347556400001
https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001347556400001
title Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market
title_short Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market
title_full Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market
title_fullStr Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market
title_full_unstemmed Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market
title_sort Government Ownership, Political Regime, and Flipping of IPOs in Pakistan: Evidence from Emerging Market
container_title SAGE OPEN
language English
format Article
description This study investigates how government ownership (state-owned IPOs) and the political regime affect the flipping of IPO shares, as well as the moderating impact of investor demand on the association between the political regime and flipping activity. Ordinary least square was employed to investigate the impact of government ownership and political regime on the flipping of IPO shares. The data set consists of 95 IPO firms listed on the Pakistan Stock Exchange (PSX) during the period of January 2000 to December 2019. The findings of this study reveal that government ownership and a political regime have a positive influence on the flipping of IPO shares, demonstrating the quality that creates liquidity in Pakistan's IPO market. Furthermore, in Pakistan, investor demand has been reported to moderate the association between the political regime and IPO flipping activity. This research offers valuable insights that may result in abnormal trading behavior or flipping immediately after listing. Likewise, state-owned IPOs and the political regime appear to be more appealing to investors, signaling the firms' high quality, causing in increased demand and higher levels of flipping. As a result, the government and regulators may devise policies to control unusual trading, ensuring that government investments in the capital market are successful and also that the government's economic and political objectives are met. Moreover, this research is critical for investors and issuers making investment decisions.JEL Classification: G12, G18, G32.
publisher SAGE PUBLICATIONS INC
issn 2158-2440

publishDate 2024
container_volume 14
container_issue 4
doi_str_mv 10.1177/21582440241260962
topic Social Sciences - Other Topics
topic_facet Social Sciences - Other Topics
accesstype gold
id WOS:001347556400001
url https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001347556400001
record_format wos
collection Web of Science (WoS)
_version_ 1818940499926450176