Post-issue operating performance of firms in Nepal
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Received August 21, 2025;Accepted January 6, 2026;Published February 26, 2026
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Author(s)Jas Bahadur GurungLink to ORCID Index: https://orcid.org/0000-0002-2783-7690
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Dilli Raj SharmaLink to ORCID Index: https://orcid.org/0009-0001-4453-6849
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DOIhttp://dx.doi.org/10.21511/imfi.23(1).2026.22
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Article InfoVolume 23 2026, Issue #1, pp. 292-306
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Type of the article: Research Article
Abstract
This paper aims to examine the operating performance of firms after new issues. Using financial data of 43 initial public offering (IPO) firms from 2013/14 through 2022/23 with 215 observations, operating performance is evaluated. Both the independent samples t-test and the Wilcoxon signed-rank test were used to compare firms’ operating performance between pre- and post-issue periods. Results reveal that operating performance after IPO for all indicators in different time windows from Year t+0 to t+3, has been negative compared to Year t–1. Sector-specific analysis shows that the decline in operating performance is significantly higher in the microfinance sector compared to hydropower firms. Underpricing has a positive effect on operating performance except in a few cases. Hot issue dummy has a negative, insignificant effect on both measures of operating performance, viz., operating return on assets and operating cashflow to total assets, for the first two-time windows, and it weakly supports the windows of opportunity hypothesis. On the other hand, the influence of promoter ownership on operating performance was positive except in few cases, which is contrary to the agency theory. Further, the results show that operating performance has a weaker influence on long-run IPO returns. Thus, it is proposed that IPO firms should strive to intensify their activities and effectively utilize capital raised through IPOs, considering the net present value of the projects to achieve better firm performance.
Acknowledgments
This paper is prepared based on my ongoing PhD work. So, I would thank my supervisors, Professor Dr. Keshar J. Baral and Professor Dr. Dilli Raj Sharma, for their mentoring during my PhD. I also extend a deep gratitude to the University Grants Commission Nepal for providing me PhD Fellowship with the Award No. PhD-78/79-Mgmt-02. I never forget my friend Ramkrishna Chapagain, a research scholar at Delhi School of Economics, University of Delhi, for assisting me with several inaccessible resources for this study.
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JEL Classification (Paper profile tab)G19, G30, G32, G38
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References34
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Tables6
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Figures0
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- Table 1. Summary statistics of sample IPO firms
- Table 2. Operating performance variables and measures
- Table 3. Parametric and non-parametric tests of operating performance measures after the completion of IPO
- Table 4. Parametric and non-parametric tests of operating performance measures after the completion of IPO for the microfinance and hydropower sectors
- Table 5. Multivariate regressions of post-issue operating performance of firms
- Table 6. Estimated relationship from cross-sectional regression of long-run IPO returns on post-issue operating performance indicators
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Conceptualization
Jas Bahadur Gurung
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Data curation
Jas Bahadur Gurung, Dilli Raj Sharma
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Formal Analysis
Jas Bahadur Gurung
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Funding acquisition
Jas Bahadur Gurung, Dilli Raj Sharma
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Investigation
Jas Bahadur Gurung, Dilli Raj Sharma
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Methodology
Jas Bahadur Gurung, Dilli Raj Sharma
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Project administration
Jas Bahadur Gurung
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Software
Jas Bahadur Gurung
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Validation
Jas Bahadur Gurung, Dilli Raj Sharma
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Visualization
Jas Bahadur Gurung
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Writing – original draft
Jas Bahadur Gurung
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Writing – review & editing
Jas Bahadur Gurung, Dilli Raj Sharma
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Resources
Dilli Raj Sharma
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Supervision
Dilli Raj Sharma
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Conceptualization
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Factors affecting employee turnover and sound retention strategies in business organization: a conceptual view
Chowdhury Abdullah Al Mamun , Md. Nazmul Hasan doi: http://dx.doi.org/10.21511/ppm.15(1).2017.06Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 63-71 Views: 20222 Downloads: 8123 TO CITE АНОТАЦІЯ“Employee turnover” as an expression is broadly used in business organization. Despite the fact that several studies have been performed on this topic, little research has been conducted on examining the causes and leading factors of turnover as well, as advising some feasible approaches, which can be applied by bosses to ensure that employees will continue in their respective organizations to enhance organizational effectiveness and productivity. The main purpose of this study is to determine the reasons and key factors in the perspectives of the relevant literature and identify to the intention of employee turnover. This conceptual paper also suggests various possible strategies on how to minimize the turnover and retain employees in the organizations. Hence, the paper has proposed a conceptual framework that shows the major variables in explaining the phenomenon of employee turnover and addressing sound retention strategies to handle these issues.
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Investigating the impact of workplace bullying on employees’ morale, performance and turnover intentions in five-star Egyptian hotel operations
Ashraf Tag-Eldeen , Mona Barakat , Hesham Dar doi: http://dx.doi.org/10.21511/tt.1(1).2017.01In today’s competitive business environment, human resources are one of the most critical assets particularly for service-focused organizations. Consequently, employees’ morale has become invaluable for maintaining outstanding organizational performance and retaining employees. One of the most important factors which may affect employees’ satisfaction is workplace bullying from employers and colleagues at large. It is considered a negative and unethical issue which may degrade, humiliate and create a risk to a healthy working environment. Therefore, the main objective of this research is to investigate the extent to which workplace bullying may affect the organizational outcomes of a sample of five-star hotels in Egypt. Two questionnaires were distributed among the subjects of the sample; bell desk staff, kitchen stewards and head departments. The results of this research confirmed that there is a correlation between workplace bullying, employees’ morale and turnover intentions but, showed no correlation between workplace bullying and employees’ work performance.
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Job stress and turnover intention revisited: evidence from Korean firms
Problems and Perspectives in Management Volume 17, 2019 Issue #4 pp. 52-61 Views: 3116 Downloads: 896 TO CITE АНОТАЦІЯThis study revisits the relationship between job stress and turnover intention for employees using a sample of employees in public companies of Korea. The authors investigate both the effect of job stress on turnover and the process by which job stress affects employee turnover. In particular, they prove that job satisfaction mediates the relationship between stress and turnover intention of the employees. Furthermore, the authors explore the job stress-turnover relationship by extending a review of the organizational justice perspective and posit whether an employee perceived organizational justice could mitigate the presumed adverse effects of job stress on turnover intention. They suggest empirical evidence that there is a significant positive relationship between job stress and turnover intention, and that job satisfaction partially mediates this relationship. However, the authors found no strong evidence of moderating roles of perceived organizational justice. Based on the job demands-resources (JDR) model, the relationship between job stress and turnover intention is evidenced. Besides, the study implies that the incidence of perceived organizational justice fails to mitigate the effect of these value-decreasing job stressors on employee turnover.

