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Table 4 Effects of foreign residency rights on Post-IPO buy-and-hold abnormal returns

From: The effects of entrepreneurial long-term commitment on post-IPO performance: Chinese evidence

Panel A: Univariate analysis

  

BHAR_1YEAR

BHAR_2YEAR

BHAR_3YEAR

 

No. of obs.

Mean

Median

Mean

Median

Mean

Median

Full sample

918

−0.060a

− 0.113a

0.104a

− 0.058

0.399a

0.083a

(1) With foreign residency

119

−0.081a

−0.139a

0.085

−0.115

0.277a

−0.043c

(2)Without foreign residency

799

−0.057a

−0.112a

0.106a

−0.048

0.417a

0.093a

Diff(1–2)

 

−0.024

−0.027

− 0.022

−0.067

− 0.140

−0.136c

Matched sample

454

−0.078a

−0.128a

0.080a

−0.091

0.371a

0.034a

(3) With foreign residency

116

−0.078b

−0.136a

0.087

−0.118

0.284a

−0.044c

(4) Without foreign residency

338

−0.077a

−0.119a

0.077b

−0.085

0.401a

0.070a

Diff(3–4)

 

−0.001

−0.017

0.010

−0.033

− 0.118

−0.114

Panel B: Regression results

 

BHAR_3YEAR

 

Full sample

Matched sample

 

(1)

(2)

TREATED

−0.176a (−4.72)

−0.115c (−1.92)

UNDERPRICE_MKTADJ

−0.320a (− 18.37)

−0.399a (− 4.40)

SIZE_IPO

− 0.187a (−5.50)

−0.189 (− 1.22)

ROA_IPO

− 0.419 (− 1.32)

−0.631 (− 1.04)

LEV_IPO

− 0.212 (− 1.47)

0.474 (0.99)

OFFER_SIZE

− 0.186a (−3.11)

−0.169 (− 0.79)

LEADERUNDERWRITER

0.086c (1.87)

−0.026 (− 0.27)

Industry fixed effects included?

Yes

Yes

Year fixed effects included?

Yes

Yes

No. of obs.

898

454

Adjusted R2

0.247

0.227

  1. This table presents results of univariate analysis and regression analysis for post-IPO buy-and-hold abnormal returns (BHARs). Panel A presents the univariate tests on 1-year, 2-year and 3-year BHARs for full sample and matched sample respectively. Panel B reports the OLS results for BHAR_3YEAR. t-values are reported in parentheses. Standard error is clustered at the industry level. The sample includes 918 non-state IPO firms for the period 2006 to 2012 that have the post-IPO period of at least 3 years. See Appendix for variable definitions
  2. a, b, and c stand for significance at the 1, 5, and 10% level, respectively