Economic freedom and IPO underpricing

Frontiers of Business Research in China

Table 3 Correlations between IPO Initial Return and Economic Freedom Variables (July 1993–December2014)

	IR	TotV	Fin	FreeTrd	PPR	Busi	Mny	Crup	Ivst	Fiscal	FreeGov	Labor
IR	1.000
TotV	−0.104	1.000
Fin	−0.197	0.797	1.000
FreeTrd	0.047	0.733	0.457	1.000
PPR	−0.179	0.865	0.854	0.615	1.000
Busi	−0.140	0.928	0.841	0.650	0.945	1.000
Mny	−0.047	0.662	0.400	0.586	0.702	0.691	1.000
Crup	−0.141	0.871	0.770	0.700	0.951	0.917	0.754	1.000
Ivst	−0.196	0.873	0.888	0.540	0.922	0.931	0.576	0.881	1.000
Fiscal	0.114	−0.017	−0.349	−0.118	−0.260	−0.155	−0.095	−0.241	−0.267	1.000
FreeGov	0.144	−0.567	−0.630	−0.593	−0.725	−0.668	−0.519	−0.700	−0.700	0.659	1.000
Labor	0.115	0.262	−0.122	0.260	−0.206	−0.037	−0.043	−0.148	−0.101	0.279	0.083	1.000

Reports the correlation matrix for the IPO initial returns and the Economic Freedom Index (IEF) scores. IR is the initial return. TotV is the total IEF value. Fin is the financial freedom sub-index score of the IEF; Ivst is the investment freedom sub-index score of the IEF; Busiis the business freedom sub-index score of the IEF; PPR is the property rights freedom sub-index score of the IEF; Crup is the corruption freedom sub-index score of the IEF; Fiscal is the fiscal freedom sub-index score of the IEF; FreeTrd is the trade freedom sub-index score of the IEF; FreeGov is the government size sub-index score of the IEF; Mny is the monetary freedom sub-index score of the IEF; Labor is the labor freedom sub-index score of the IEF. Bold typeface indicates significance at the 1% level. Italic typeface indicates significance at the 5% level