Firm quality or market sentiment : what matters more for IPO investors?
Neupane, Suman and Paudyal, Krishna and Thapa, Chandra (2014) Firm quality or market sentiment : what matters more for IPO investors? Journal of Banking and Finance, 44. pp. 207-218. ISSN 0378-4266 (https://doi.org/10.1016/j.jbankfin.2014.04.010)
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Abstract
This paper investigates the investment decisions of IPO investors when equipped with information on both the quality of the firm and the market sentiment. Unique regulatory provisions allow IPO investors in India to have access to the independent assessment of firm quality and information on the participation of other investors, including institutional investors. At the same time, an active grey market reveals market sentiment before the application for subscription is closed. The results, which are robust to alternative model specifications, suggest that the institutional investors' decision is guided almost exclusively by firm quality while the retail investors' decision to participate in IPOs is strongly influenced by market sentiment, even in a highly transparent market where both sets of information are freely available.
ORCID iDs
Neupane, Suman, Paudyal, Krishna ORCID: https://orcid.org/0000-0002-0372-304X and Thapa, Chandra ORCID: https://orcid.org/0000-0001-8661-8079;-
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Item type: Article ID code: 49958 Dates: DateEventJuly 2014Published18 April 2014Published Online9 April 2014AcceptedNotes: NOTICE: this is the author's version of a work that was accepted for publication in Journal of Banking and Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Banking and Finance, [44, (07/2014)] doi:10.1016/j.jbankfin.2014.04.010 Subjects: Social Sciences > Commerce > Accounting
Social Sciences > FinanceDepartment: Strathclyde Business School > Accounting and Finance Depositing user: Pure Administrator Date deposited: 21 Oct 2014 12:35 Last modified: 06 Oct 2024 13:57 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/49958