Table 5 provides evidence relating to the prediction concerning underpricing. In which regressions is theevidence consistent with the prediction, and in which regressions is the evidence inconsistent with theprediction? Specifically, what is the dependent variable, which are the key independent variables for testingthe prediction, and describe what their signs and significances across the six regressions tell you.Table 16.5Regressions for underpricing of the IPOIndependent variablesVenture firm less than six yearsoldLogarithm of venture firm ageNumber of IPOs in previousfour monthsLogarithm of IPO offering sizeStandard deviation of stockreturnLogarithm of IPO company ageLogarithm of length of boardserviceUnderwriter rankVenture capital undermanagementConstantR²p-Value of F-testNumber of observationsDependent variableFirst-day return-underpricing0.07613.82]-0.001[ 4.91]0.037(3.26]1.77[3.28]-0.5481-2.8910.2480.0003370.08813.49]-0.001| 4.90]0.062[4.49]2.22[3.35]0.00210.15]-0.015[-1.64]0.031(0.98)0.072[4.05]-0.001-0.001-0.001-0.001[ 3.70] [ 4.82] [-4.78] [-3.700.036[3.19]1.40[195]-0.008[-0.49]-0.004[-1.23]-0.022[-2.50]-0.0001[-1.68]-0.910-0.861[-3.66] [-2.97]0.3390.3630.0000.000-0.040 -0.052[ 3.89] [-4.07]1901.75[3.24]0.061[4.50]2.15[3.29]0.002[0.17]-0.020[-1.18]-0.424-0.744[-2.29] [-3.15]0.2490.3520.0000.0002410.071[4.00]1.37[1.94]-0.018-0.005[-1.69] [-1.31]-0.007[-0.45]-0.22[-2.51]0.0001[1.94]-0.767[-2.80]0.3650.000241190Note: The sample is 433 venture-backed IPOs from 1978-1987. The dependent variable is underpricing ofthe IPO (Le, the first-day return on the IPO firm). Independent variables include a dummy variable that equalsone if the venture organization is less than six years old, the logarithm of the lead venture capital firm's age inmonths, the cumulative number of IPOs (both venture backed and non-venture backed) in the previous fourmonths, the logarithm of IPO offering size, the standard deviation of the stock returns from day 2 to day 20after the IPO, the natural logarithm of the IPO company's age in months, the logarithm of the number ofmonths that the lead venture capitalist has been on the company's board of directors, the Carter and Manaster(1990) underwriter rank, and the capital under management at the lead venture capital firm. All regressions in-clude industry dummy variables to control for any fixed effects. Coefficients on industry dummies are notreported. I-statistics are in brackets.]

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Regression analysis is a statistical technique that helps us model relationships between one or more…