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Study of Factors Affecting the Initial Public Offering (IPO) Price of the Shares on the Tehran Stock Exchange

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  • Leila Bateni
  • Farshid Asghari

Abstract

Price determined for a company¡¯s shares is true value of its property and opportunity for future development and growth. Nowadays Hundreds of companies enter stock exchange for the first time. Main question of this research is whether pricing the initial offering exchange on Tehran stock exchange is less than actual and what factors affect pricing of initial shares on stock exchange. For this purpose, 115 stock exchange companies from 2006 to 2012 were studied. Data gathered from these companies were analyzed with SPSS. Results indicated that only P/E variable has a significant relation with price changes on initial offerings and had highest impact on price of initial offerings.

Suggested Citation

  • Leila Bateni & Farshid Asghari, 2014. "Study of Factors Affecting the Initial Public Offering (IPO) Price of the Shares on the Tehran Stock Exchange," Research in World Economy, Research in World Economy, Sciedu Press, vol. 5(2), pages 68-73, September.
    • Handle: RePEc:jfr:rwe111:v:5:y:2014:i:2:p:68-73
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    References listed on IDEAS

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    1. Tinic, Seha M, 1988. " Anatomy of Initial Public Offerings of Common Stock," Journal of Finance, American Finance Association, vol. 43(4), pages 789-822, September.
    2. Carla Vieira & Ana Paula Serra, 2006. "Abnormal Returns in Privatization Public Offerings: The case of Portuguese firms," Notas Económicas, Faculty of Economics, University of Coimbra, issue 23, pages 6-34, June.
    3. Rock, Kevin, 1986. "Why new issues are underpriced," Journal of Financial Economics, Elsevier, vol. 15(1-2), pages 187-212.
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    Cited by:

    1. Karanović Goran & Karanović Bisera, 2016. "IPOs Performance Analysis: Evidence from Emerging Markets in the Balkans," Scientific Annals of Economics and Business, Sciendo, vol. 63(3), pages 381-389, November.
    2. Ali Alnodel & Muhammad Junaid Khawaja, 2018. "Factors Influencing IPOs Pricing and Performance in Saudi Arabia: A Halal and Haram Perspective," Accounting and Finance Research, Sciedu Press, vol. 7(4), pages 1-78, November.
    3. Goran KARANOVIĆ & Bisera KARANOVIĆ, 2016. "IPOs PERFORMANCE ANALYSIS: EVIDENCE FROM EMERGING MARKETS IN THE BALKANS," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 63(3), pages 381-389, November.

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