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Underpricing of Turkish IPOs after the global financial crisis

Huseynli, Kanan LU (2015) NEKN02 20152
Department of Economics
Abstract
The purpose of this paper is to analyze the short-run price behavior of the initial public offerings (IPOs) in Turkey after the Global Financial Crisis by using the most recent IPO data from the Borsa Istanbul official website. Results show that the 63 selected IPOs during the period of
2008-2014 provide a 3.5 percent first-day return1 on average, and the average cumulative return increases to 8.57 percent on the fifth trading day. The first-day return is lower compared to the findings for the pre Crisis period. Empirical findings show that the underpricing in Turkey
decreased after the Global Financial Crisis. Furthermore, findings indicate that the total assets of the firm and IPO proceeds are two important factors that affect... (More)
The purpose of this paper is to analyze the short-run price behavior of the initial public offerings (IPOs) in Turkey after the Global Financial Crisis by using the most recent IPO data from the Borsa Istanbul official website. Results show that the 63 selected IPOs during the period of
2008-2014 provide a 3.5 percent first-day return1 on average, and the average cumulative return increases to 8.57 percent on the fifth trading day. The first-day return is lower compared to the findings for the pre Crisis period. Empirical findings show that the underpricing in Turkey
decreased after the Global Financial Crisis. Furthermore, findings indicate that the total assets of the firm and IPO proceeds are two important factors that affect underpricing. These variables have been used as the proxy for ex-ante uncertainty. Therefore, the ex-ante uncertainty
hypothesis succeeded in clarifying IPO underpricing in Turkey. (Less)
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author
Huseynli, Kanan LU
supervisor
organization
course
NEKN02 20152
year
type
H1 - Master's Degree (One Year)
subject
keywords
Initial public offering (IPO), First-day return, Cumulative return, Borsa Istanbul
language
English
id
8057837
date added to LUP
2015-11-05 11:15:13
date last changed
2015-11-05 11:15:13
@misc{8057837,
  abstract     = {The purpose of this paper is to analyze the short-run price behavior of the initial public offerings (IPOs) in Turkey after the Global Financial Crisis by using the most recent IPO data from the Borsa Istanbul official website. Results show that the 63 selected IPOs during the period of
2008-2014 provide a 3.5 percent first-day return1 on average, and the average cumulative return increases to 8.57 percent on the fifth trading day. The first-day return is lower compared to the findings for the pre Crisis period. Empirical findings show that the underpricing in Turkey
decreased after the Global Financial Crisis. Furthermore, findings indicate that the total assets of the firm and IPO proceeds are two important factors that affect underpricing. These variables have been used as the proxy for ex-ante uncertainty. Therefore, the ex-ante uncertainty
hypothesis succeeded in clarifying IPO underpricing in Turkey.},
  author       = {Huseynli, Kanan},
  keyword      = {Initial public offering (IPO),First-day return,Cumulative return,Borsa Istanbul},
  language     = {eng},
  note         = {Student Paper},
  title        = {Underpricing of Turkish IPOs after the global financial crisis},
  year         = {2015},
}