Investigating of long-term performance the stocksinitial offeringin Tehran Stock Exchange

Mohammad Ali Molazadeh, Valiollah Shahbazkhani

Abstract


The aim of this research was to investigate the long-term performance the stocksinitial offering in Tehran Stock Exchange. This research was a kind of study of library and analytical reason and it was based on the ordinary least squares method (analysis of data compilation).In this research the  financial information of 24 companies listed on the Tehran Stock Exchange during the period 2010 to 2015 that they had been initial offering were investigated (144 companies - year). To analyze the obtain results of research was used the 12 Stata software. The  research results relate to confirming the first hypothesis have shown that the  warm and cold type of market in the relationship between the volume of shares offered with the lower valuation of fact have the significant positive impact.Also according to the analysis made in relation to reject the second hypothesis of research reached to this result that there is not a significant relationship between the number of companies that are initial offering  with the valuation less than in fact of the Stocks in the previous period. In the following the research results in relate to confirming third hypothesis indicate that there is a significant relationship between the number of companies have Initial offering, with the kind of warm and cold market.Also according to the analysis conducted in relation to confirmation the fourth hypotheses of research conclude that there is a significant relationship between the grouped companies in the same industry in the initial offering with the kind of warm and cold market. In thefollowing the research results related to the confirmation of fifth hypotheses showed that the kind of warm and cold market on the relationship between risk stocks initial offering and short-term returns have  positive and significant impact. Also according to the analysis conducted in relation to confirmation of sixth hypotheses of research reached  this conclusion that the companies with initial supply in the warm market compared to those in the cold market have the initial offering have poor performance in the long term.Finally according to the conducted analysis in relation to confirmation the seventh hypotheses of research to  reach to this conclude that the cross variance of the long-term abnormal returns of companies that in the hot market  have initial offering are significantly less.


Keywords


Market type of warm and cold, the stocks volume of initial offerings, classification companies, stocks risk and short term returns, poor performance.

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