Publication Type:

Conference Paper

Source:

2015 International Conference on Advances in Computing, Communications and Informatics, ICACCI 2015, Institute of Electrical and Electronics Engineers Inc., p.866-868 (2015)

ISBN:

9781479987917

URL:

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84946196174&partnerID=40&md5=65fbe34813c2bb0fad15502d452d2d62

Keywords:

Commerce, Costs, Dummy variable regression, Financial markets, Grading, Information asymmetry, Information science, Initial public offer, Investments, market efficiency, Market fluctuations, Potential investors, Price-performance, Regression analysis, Statistical mechanics, Statistical tools

Abstract:

<p>Capital markets all over the world are subject to information asymmetry where the potential investors have inferior knowledge about the company. As a step to make markets efficient SEBI introduced a new mechanism of grading of IPOs in 2006. Grades assigned by different credit rating agencies acts as signal of quality of the company. The objective of this study is to analyze the impact of grading of IPOs in short run price performance. Price performance is one indicator of market efficiency. Using sample of 121 IPOs listed on NSE from 2006 to 2013, IPO returns for 6 months post offer day is calculated. Control variables Beta and 6 months market return are also introduced. Statistical tool multiple linear dummy variable regression analysis is used to understand the dependence of returns from IPO to the grades assigned taking market fluctuation and sensitivity of stock returns to market fluctuations as control variables. © 2015 IEEE.</p>

Notes:

cited By 0; Conference of International Conference on Advances in Computing, Communications and Informatics, ICACCI 2015 ; Conference Date: 10 August 2015 Through 13 August 2015; Conference Code:115835

Cite this Research Publication

S. Neeraja and Dr. P. Balasubramanian, “Impact of grading of IPOs in short run price performance in India: A regression model approach”, in 2015 International Conference on Advances in Computing, Communications and Informatics, ICACCI 2015, 2015, pp. 866-868.

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