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 100
- Downloads 0
An Empirical Study on the Effect of Business Ethics on the Company’s CSR Practices
Ethics word comes from the Greek word “ethos”, which means explaining an individual and community both. In general, it’s not just mean that it involves only legal framework, such standards made by company, adhering conce...
"THE DOMINANT CELL METHOD; OPTIMAL SOLUTION FOR LINEAR TRANSPORTATION PROBLEM"
This research offers a new method to accomplish the optimal solution (O.S) of transportation problem (T.P) in linear programming (L.P). It is simple and direct unlike the current method which requires mostly two stages;...
A STUDY ON RURAL MARKETING ENVIRONMENT IN INDIA
Rural India is a vast and a complex society – its huge population is highly diverse in terms of ethnicity, language, customs and their way of life. The demographic and economic statistics that underlay the growth of Indi...
A Study on Lead-Lag Relationship between Futures and Spot Markets in Case of Agricultural Commodity Derivatives in India
The two major economic functions of a commodity futures market are price risk management and price discovery. The effectiveness of the price risk management depends on how efficiently the futures market fulfills the pric...
Domestic Fuel Price Hike and Purchase of Cars in Wilayat of Nizwa Sultanate of Oman a Factor Analysis Approach
Hike in domestic oil prices can impact an economy at the micro level and macro level. This study aims at identifying the overriding factors that influence an existing or prospective consumer in their car purchase decisio...