What Factors Drive IPO Prices: An Empirical Study of Alternative Factors

Ganpat University-Faculty of Management Studies Journal of Management and Research, Vol III, 2011

14 Pages Posted: 10 Feb 2014

See all articles by Dhiren Jotwani

Dhiren Jotwani

Nirma University

Shivangi Singh

Nirma University - Institute of Management

Date Written: December 21, 2012

Abstract

IPO pricing is an emerging field in Finance that contains elements of Economics. It has been studied by researchers frequently over the past two decades. With availability of data and standardization of accounting norms, we can now study share prices in much greater detail. Few (or no) studies have so far touched the aspects of the "objectives of the IPO" or "type of industry" for the firm. Pricing of an IPO is governed by behavioral factors, and companies do try to induce investors to rush for their stocks. In this paper, we attempt to draw a relation between IPO pricing and the variables that we have introduced in this analysis.

Keywords: IPO Pricing, Long-run performance, Information asymmetry

JEL Classification: C20, E44, G00

Suggested Citation

Jotwani, Dhiren and Singh, Shivangi, What Factors Drive IPO Prices: An Empirical Study of Alternative Factors (December 21, 2012). Ganpat University-Faculty of Management Studies Journal of Management and Research, Vol III, 2011, Available at SSRN: https://ssrn.com/abstract=2393247

Dhiren Jotwani (Contact Author)

Nirma University ( email )

Sarkhej-Gandhinagar Highway
Gota
Ahmedabad, Gujarat 382 481
India

Shivangi Singh

Nirma University - Institute of Management ( email )

Sarkhej-Gandhinagar Highway
Via Gota
Ahmedabad, Gujarat 382481
India

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