Multiple Linear Regression Analysis

In recent years, a large literature has emerged in the documentation of returns earned by investors on initial public offerings of common stock (IPOs). In the hot-issue period (late nineties), the IPOs symbolized huge initial returns to eager investors and a formula for a young firm to raise large sums of capital and achieve a huge valuation, almost instantly. Such spectacular results come with a caveat. Most of the IPOs trade below their offering price if observed after a certain length of time from the issue. In this report you will use 301 IPOs of high-tech firms to analyse the excess returns in the first 6 months of the IPO on the basis of fundamental and new economy variables.

1. Introduce the problem. Include a descriptive table for the summary statistics of the variables (mean and standard deviation). For each explanatory variable, briefly explain why it might have a causal effect on the IPO performance.
2. Run a model with all regressors and test the significance of the coefficients at the 1,5 and 10 percent level [Use $* * *$ if $p$-value $<0.01$, ${ }^{* *}$ if $p$-value $<0.05$, and $*$ if $p$-value $<$ 0.10]. INTERPRET YOUR RESULTS.
3. Omit all insignificant regressors, run the regression and report your results. Alternatively, omit one regressor at a time, starting with the most insignificant regressor based on the relative value of the $p$-value. Report your results [Note: I need One Table with multiple columns]. INTERPRET YOUR RESULTS.
4. Finally evaluate the above models using the adjusted $R^{2}$. Select the most suitable model. You must make a few summary tables to report all your results.

Price: $14.23

Solution: The downloadable solution consists of 4 pages, 1023 words and 3 charts.
Deliverable: Word Document