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Performance Evaluation of Return, Risk and Liquidity of Firms Newly Listed in Tehran Stock Exchange

Author

Listed:
  • Mehdi Alikhani Mehrjardi

    (CEO of Sadid Tadbir Investment Co., Tehran, Iran,)

  • Mohammad Ghadamyari

    (Faculty of Management and Accounting, Islamic Azad University, Qazvin Branch, Qazvin, Iran,)

  • Yousef Mahboobi

    (Pardis Branch, Payame Noor University, Tehran, Iran.)

Abstract

It is essential to understand the behavior of initial offerings in comparison with other firms in different periods of recession and prosperity of stock market, considering three indicators of performance, i.e., return, risk and liquidity. The focus of this study is performance evaluation of newly listed stocks considering above indicators in different periods of recession and prosperity. For this purpose, 317 active firms which were not consistently inactive for 3 months or traded by March 20, 2006 were studied. Based on the suggested model, performance of the newly listed stocks was evaluated simultaneously based on three indicators of performance. Then, performance of the newly listed stocks was evaluated individually based on those three indicators. Through multivariate analysis of variance, performance of the newly listed stocks was evaluated better than other stocks.

Suggested Citation

  • Mehdi Alikhani Mehrjardi & Mohammad Ghadamyari & Yousef Mahboobi, 2017. "Performance Evaluation of Return, Risk and Liquidity of Firms Newly Listed in Tehran Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 249-254.
    • Handle: RePEc:eco:journ1:2017-01-32
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    References listed on IDEAS

    as
    1. Cai, Jun & Wei, K. C. John, 1997. "The investment and operating performance of Japanese initial public offerings," Pacific-Basin Finance Journal, Elsevier, vol. 5(4), pages 389-417, September.
    2. Reena Aggarwal & Ricardo Leal & Leonardo Hernandez, 1993. "The Aftermarket Performance of Initial Public Offerings in Latin America," Financial Management, Financial Management Association, vol. 22(1), Spring.
    3. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
    4. Juliane Begenau, 2015. "Capital Requirements, Risk Choice, and Liquidity Provision in a Business Cycle Model," 2015 Meeting Papers 687, Society for Economic Dynamics.
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    Cited by:

    1. Camilleri, Silvio John & Galea, Francelle, 2019. "The Determinants of Securities Trading Activity: Evidence from four European Equity Markets," MPRA Paper 95298, University Library of Munich, Germany.

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    More about this item

    Keywords

    Initial Public Offering; Return; Risk; Liquidity;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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