Survey on Ipo underpricing in the Istanbul Stock Exchange

Metin Ercan and Serhat Çevi̇kel
Additional contact information
Metin Ercan: Boğaziçi Üniversitesi
Serhat Çevi̇kel: Boğaziçi Üniversitesi

Iktisat Isletme ve Finans, 2011, vol. 26, issue 305, 85-117

Abstract: Literature suggests that initial public offering (IPO) underpricing is related to information asymmetry, signals conveyed by the issuers, intention of the issuers to raise additional funds through seasoned offerings, existence of agency costs between executives and shareholders, the bankers’ reputations and hot issue markets. This study tests whether the perceptions of market participants regarding these underpricing issues in an emerging market context confirm the international empirical evidence or not. One advantage of measuring the perceptions is that immeasurable factors that are explored through proxies in empirical studies - such as information asymmetry - can be directly surveyed. Findings reveal that among the two types of market participants (market professionals and public company executives) market professionals have a better insight into IPO dynamics. Theoretical expectations and previous empirical findings for hypotheses relating directly or indirectly to information asymmetry and signaling theory in IPO underpricing are confirmed especially by the perceptions of market professionals

Keywords: IPO; underpricing; Istanbul Stock Exchange; Survey; Asymmetric information; Signalling theory; Perceptions; Turkey (search for similar items in EconPapers)
JEL-codes: G14 G39 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iif:iifjrn:v:26:y:2011:i:305:p:85-117

Ordering information: This journal article can be ordered from
http://www.iif.com.t ... ew/iif.2011.305.2999

Access Statistics for this article

Iktisat Isletme ve Finans is currently edited by Ali Bilge

More articles in Iktisat Isletme ve Finans from Bilgesel Yayincilik
Bibliographic data for series maintained by Ali Bilge ().