Effect of Firm-specific And Macro-economic Factors On Ipos in Indian Capital Market: Using Econometric Model
DOI:
https://doi.org/10.33516/rb.v49i2%20-%203.31-48pKeywords:
Firm-Specific Factors, Initial Public Offerings, MAARO, Macro-Economic Factors, Underpricing.Abstract
The aim of this paper is to examine the impact of firm-specific and macro-economic factors on initial public offerings (IPOs) in Indian Capital Market. The study shows that in the first method, number of IPO issues, the model 5 suggests that firm size from firm-specific factors and HCI from macro-economic factors have significant impact. Second method-MAARO of model 7, depicts that only employment rate and the human capital index as macro-economic factors have significant negative impact. In third method, model 7 of the level of underpricing is influenced significantly negative by the issue price as a firm-specific factor and positively by the balance of payment as a macro-economic factor during the study period. Finally, study concludes that, they are considered to be the good fit models since its significance level of predictive model, the highest performance score, least difference between R2 and adjusted R2, the lowest sigma and satisfaction of all diagnostic tests among the calculated models of three different methods.
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