Factors driving IPO variability: evidence from Pakistan stock exchange

Purpose The objectives of this study are twofold. First, it intends to investigate the symmetric link between initial public offering (IPO) variability and determinants stock market index, treasury bill rate, inflation, GDP growth rate foreign direct investment. Second, examine asymmetric IPO aforementioned determinants, namely Design/methodology/approach Data from 1992 2018 were gathered country Pakistan in order achieve above objectives. Augmented Dickey–Fuller (ADF) Phillips Perron (PP) unit root tests employed determine data's stationarity properties. Auto Regressive Distributive Lags (ARDL) model was utilized links, Non-Linear Lag Model (NARDL) links. While long-run co-integration examined using ARDL bound test, short-run dynamics tested error correction method (ECM). Findings macroeconomic variables investment found pose significant effects on variability. These results indicate significance enhancing findings also demonstrate typical reactions FDI towards negative positive shocks inflation. This evidence implies that Pakistan's poor capital development is reflected country's weak factors. At same time, reduced reflects lack confidence among prospective issuers investors due indicators. Originality/value first its kind properly