An Assessment of Valuation Methods of Stock Initial Public offerings on Tehran Stock Exchange
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2017, Vol 7, Issue 4
Abstract
Every day hundreds of companies all over the world are entering capital market for the first time by issuing stocks. By doing so, they decide to invest capital necessary for continuing activity and expanding operations accordingly. For this reason, it is important to the companies that price specified for their stock demonstrate real value of assets and their growth and development opportunities in the future. The purpose of this research is to study valuation methods of stock initial public offerings at the Tehran Stock Exchange. Population and study sample consisted of firms publicly offered their stocks for the first time at Tehran Stock Exchange during 2009-2014, and experienced no trading halt, i.e. 45 companies of which seven companies were eliminated due to lack of trading on the stock exchange and 38 firms were chosen. The research method is correlational-descriptive and the research is an applied research by purpose. The research is based on cross-sectional time regression analysis, for which simple multivariate regression estimation based on ordinary least square method was used, and models under consideration were examined by Eviews and SPSS. After analysis of results, the research findings showed that some variables such as firm size have no influence on the price of initial public offering but variables such as risk, size of initial offerings, amount of firm capital, etc. have significant effect on the price of stock initial public offering. In the end, it is recommended that companies price their stocks in the way that it paves the way for growth and development of their assets, given that there are a lot of factors and variables that affect the price of stock initial offering.
Authors and Affiliations
Mohammad Kheiry, Sima Golozar, Ali Amiri
Keywords
Related Articles
- EP ID EP609700
- DOI 10.6007/IJARBSS/v7-i4/2822
- Views 93
- Downloads 0
Pedagogical Content Knowledge of Art Teachers in Teaching The Visual Art Appreciation in School
The mastery of pedagogical content knowledge (PCK) among art teachers in the field of visual arts appreciation is at stake. The aim of the study is to analyze the mastery of the art teachers on PCK in the field of visual...
Analyzing the Effect of Credit and Liquidity Risks on Profitability of Conventional and Islamic Jordanian Banks
The present paper investigates the influence of financial risks on the profitability of banks in Jordan (Islamic and conventional) for the period between 2006 and 2015. Profitability was measured in this study by return...
Recent Projects of a Preservation Framework for Digital Preservation
This study is an attempt to gain greater understanding of the preservation of primary data and records of social science research in digital formats. In order to achieve this aim, we review previous framework on digital...
Measurement Model of Sociality, Innovation and Market Orientation Using Confirmatory Factor Analysis in Social Entrepreneurship Context
University students are the potential human capital that must be inculcated with appropriate skills and good values to develop the exemplary and towering personal qualities in them. In this regard, they are encouraged to...
Intellectual Capital Management: Pathways to Sustainable Competitive Advantage
Managing intellectual capital has gained popularity among both academia and industry setting due to numerous firms’ attempts to gain a sustainable competitive advantage. In order to improve the ability of financial state...