DYNAMICS OF MONETARY POLICY IMPACT ON INITIAL PUBLIC OFFERING: INSIGHTS FROM THE PAKISTAN STOCK EXCHANGE

Abstract

This study explores heterochthonous monetary shocks' effect on the initial public offering market, employing excessive-frequency identity approach. Saengchote and Sthienchoak (2020) databank include 190 SBP official statement between 2001 and 2020. Modifications in 3-months fed futures, which can be negatively associated with Standard and Poor 500 within thirty-min window (15-minutes earlier, 15-minutes later) immediate SBP official statements, are categorized as traditional shocks. Contractionary shocks within the traditional logic cause a drop in the initial public offering undertaking. Opposed to, contractionary shocks that deliver the influential financial facts generate an upward thrust in initial public offering task. The setting apart traditional monetary shocks from state financial institution statistics shocks permits an ironic evaluation of monetary policies affecting initial public offering market. This study has added two major points to literature as it shows that monetary policy has impartial role in determining initial public offering market, also research shows that informational effect of financial shocks is as essential such as traditional effect in upsetting the initial public offering goings-on.