IDEAS home Printed from https://ideas.repec.org/a/ids/ijsuse/v15y2023i2p226-244.html
   My bibliography  Save this article

Macroeconomic variables and IPO activities: an empirical investigation in Indian market

Author

Listed:
  • Pritpal Singh Bhullar
  • Seshadev Sahoo

Abstract

The present study intends to examine the effect of selected macroeconomic variables on the initial public offerings (IPO) activity (i.e., volume of IPOs) issued during 2011 to 2020 in the Indian capital market. This study used seven macroeconomic factors, i.e., gross domestic product at constant prices, business confidence index, foreign direct investment in equity inflow, yield on five-year corporate bonds, yield on three-month T-Bills on the secondary market, interbank rate, and performance of the Bombay Stock Exchange, India sensitivity index (BSE Sensex as market benchmark) as independent variables. Econometric tools like vector auto regression, variance decomposition test, and impulse response functions were applied to the selected time series data. We find that the business confidence index, gross domestic product, BSE index performance, and foreign direct investment have significant effects on IPO activities. Furthermore, these macroeconomic variables show their impact over a period.

Suggested Citation

  • Pritpal Singh Bhullar & Seshadev Sahoo, 2023. "Macroeconomic variables and IPO activities: an empirical investigation in Indian market," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 15(2), pages 226-244.
    • Handle: RePEc:ids:ijsuse:v:15:y:2023:i:2:p:226-244
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=129825
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijsuse:v:15:y:2023:i:2:p:226-244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=301 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.