Contagion Effect of Macro Economic Variables on Ipo Listing Activity: A Time Series Analysis in Indian Context
Journal Title: International Journal of Business Management & Research (IJBMR) - Year 2017, Vol 7, Issue 4
Abstract
Boom and slump also occurs in Initial public offer segment of corporate securities market. Studies in context of developed capital market have exhibited that the macroeconomic variables, as well as market specific variables cause fluctuation in size and number of initial public offers (IPOs). This study, examines the relation between the financial market conditions (i.e. interest rate), total economy activity (GDP) and the IPO activity. Data from Jan 2004 to 2016 on quarterly basis was sampled for the purpose of the analysis. Co-integration and Granger Causality tests performed on variables namely number of IPO issue, issue size, interest rate and GDP. It was found that the interest rate has cointegration, but do not have causal relationship with number of IPO issues, as well as with size of IPO. GDP showed a significant causal relation with issue size, but insignificant one with the number of issue. Our findings contradict with the findings of Kaya (2013) and Lowery (2004). Finally, it is concluded that only GDP has a causal relationship with the size of IPO.
Authors and Affiliations
Poonam Rani, Veerpaul Kaur Maan
Keywords
Related Articles
- EP ID EP239042
- DOI -
- Views 134
- Downloads 0
A Study on Efficient Value Chain Management of Grapes in Northern Karnataka
Grapes are the rich sources of vitamins and minerals for consumers and income for those involved in production and marketing. Having first-hand information about grape production and marketing system is essential to devi...
The Effect of Communication to Change and Organizational Trust on Readiness for Change (Case Study on Xyz School)
The purpose of this paper is to identify the effect communication to change and trust to the organization of XYZ School to the readiness for change in the academic activity. A series of structured questionnaires conducte...
THE ANALYSIS OF ORGANIZATIONAL ENVIRONMENTON CIBINONG SCIENCE AND TECHNOLOGY PARK (C-STP)
Cibinong Science and Technology Park (C-STP) is an organization with a business system that is open, therefore, the organization's relationship with the internal and external environment will affect business performance...
GRAVEYARD SHIFT IN BUSINESS PROCESS OUTSOURCING (BPO) FILIPINO EMPLOYEES’ PERFORMANCE: INPUTS TO INTERVENTION MEASURES
Given the rising popularity of the different outsourcing firms in the Philippines, the need for more Filipino workforces is needed by these firms to expand their customer base and keep customer loyalty with their firms....
BRAND EQUITY OF AMUL IN SIVAKASI
Brand equity helps to know the value or the strength of the product among the customers in the market. For that, AMUL product has taken by the researcher. By knowing the strength of the product, the company or retailers...