Determinants of Volume of IPOs in India: A Case of Count Model with Overdispersion

Vikram Ghandeeswaran Narayanan () and Gopakumar Kattiparambil Unni ()
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Vikram Ghandeeswaran Narayanan: Sri Sathya Sai Institute of Higher Learning, Prasanthinilayam, Andhra Pradesh, India
Gopakumar Kattiparambil Unni: Sri Sathya Sai Institute of Higher Learning, Prasanthinilayam, Andhra Pradesh, India

Economic Research Guardian, 2021, vol. 11, issue 1, 27-46

Abstract: This study sets out to identify the factors determining Initial Public Offerings (IPO) in India. The sample for our study covers on a monthly frequency from April 2001 through December 2017. Where, volume of IPO, i.e., number of companies that have gone public is taken as the dependent variable and it is regressed on variables that capture the macroeconomic scenario as well as investor’s confidence. Having a count dependent variable, we have employed Poisson regression and negative binomial regression techniques to estimate the parameters. The results from our study confirms the significance of the chosen variables in determining IPOs in India. However, it is the role secondary market variables like stock returns, liquidity and volatility that stands out prominent among other factors like economic growth, interest rate, inflation, credit and FII’s. Apart from these conventional variables, we also find investor’s perception about businesses measured by business confidence index (BCI), to be an influential factor in determining the volume of IPOs.

Keywords: Initial Public Offering; Count Data; Poisson regression; Negative binomial regression; Business confidence index (search for similar items in EconPapers)
JEL-codes: C25 G11 G41 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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