Purpose
The purpose of this study is to investigate the nexus of corporate governance, political stability and Performance in IPOs of an emerging economy such as Pakistan.
Material and Methods
The data used in this study were obtained from the annual reports of IPO-listed firms in Pakistan between 2008 to 2022. We used different methods such as regression analysis, random effect model, and GMM methods in the analysis process.
Findings and Conclusion
: Our results show that an independent board has a significant positive relationship with performance. Moreover, board size has both a negative and positive relationship with the performance of the IPOs. Gender diversity has a significant positive relationship with IPO performance. Moreover, the age of the firm has a significant positive relationship with IPO performance. Political stability within the country has a positive relationship with IPO performance, whereas the political instability decreases the performance and vice versa.
Policy Implications:
This study provides practical implications to the government and investors; the government makes a code of corporate governance to increase the number of corporations by improving their Initial return and Investors use the study to evaluate the corporation with an effective code of corporate governance for protecting their investment.