Analyzing the duration of IPOs from offering to listing using the Cox proportional hazards model

  • Muhammad Zubair MumtazEmail author
  • Zachary Alexander Smith
Original Article


This study examines the duration from the offering to the listing of IPOs issued on the Pakistan Stock Exchange (PSX) during the period lasting from 1995 to 2017. First, we analyze two regulatory regimes and identify that the listing process has improved under the SECP regime which eventually reduces the duration to listing. Second, this study explores the factors that contribute to a listing duration including the quality of an IPOs, price discovery, proportion of legal entity owned shares, market sentiment, the underwriter’s prestige, the age of the firm and the financial performance. Subsequently, we apply the Cox proportion hazards model to identify the determinants that affect the duration of IPOs. Third, this study extends the analysis to examine the importance of the regulatory regime and issuing year through frailty effects. Fourth, to examine the determinants of IPOs duration to listing we use the Extreme Bounds Analysis. Lastly, this study compares the findings with Brooks and Guo (2009) to identify and contrast the factors associated with IPO duration for developed and emerging economies. Moreover, this study confirms that the regulatory regime, offer price, ROA, price discovery mechanism, and hot activity period are the significant factors influencing the duration of IPOs in the Pakistani capital market.


IPOs Duration Cox proportional hazards model 



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Copyright information

© ISEG – Instituto Superior de Economia e Gestão 2019

Authors and Affiliations

  1. 1.School of Social Sciences & HumanitiesNational University of Sciences & TechnologyIslamabadPakistan
  2. 2.Tapia College of BusinessSaint Leo UniversitySaint LeoUSA

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