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
Date Written: December 21, 2012
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: Suggested Citation