Table 8 Variable definition and description

TREATED

Indicator variable: Equals 1 if the sample firm has at least one controlling shareholder with foreign residency rights; 0 otherwise

POST

Indicator variable: Equals 1 if the sample period lies in the post-IPO 3-year period of t + 1 to t + 3 year; 0 if the sample period lies in the IPO current year, and the pre-IPO 2-year period of t–1 to t–2 year

UNDERPRICE_MKTADJ

Market adjusted IPO underpricing: Calculated as (close price at IPO first day/IPO price)–1) minus market return from IPO issue to listing

BHAR_1YEAR

Buy-and-hold abnormal return (BHAR) during the post-IPO 1-year with total value-weighted return as the market index

BHAR_2YEAR

Buy-and-hold abnormal return (BHAR) during the post-IPO 2-year with total value-weighted return as the market index

BHAR_3YEAR

Buy-and-hold abnormal return (BHAR) during the post-IPO 3-year with total value-weighted return as the market index

SIZE_IPO

Company size at IPO: Calculated as natural log of book value of total assets

ROA_IPO

ROA at IPO: Calculated as operating income/lagged total assets

LEV_IPO

Leverage at IPO: Calculated as long-term debt/total assets

OFFER_SIZE

IPO issue size: Calculated as natural log of new shares issues

FIRM_AGE

IPO firm age: Calculated as the yearly distance between firm establishment and IPO date

LEADUNDERWRITER

Indicator variable: Equals 1 if an underwriter is ranked as one of the top 10 underwriters according to the underwritten new share issue in the previous year; and 0 otherwise

LOG_SALES

Natural log of sales

LOG_EMPLOY

Natural log of number of employees

ROA

Operating income/lagged total assets

LEV

Long-term debt/total assets

CAPEX_TA

Investment on fixed assets, intangible assets and other long-term assets/total assets

LOG_RD

Natural log of (1 + R&D expenditure)

LOG_PATENT

Natural log of (1 + number of patent applications)

PATENT_RD

(Number of patent application/R&D expenditure) × 10,000