Please use this identifier to cite or link to this item:
http://ir.mu.ac.ke:8080/jspui/handle/123456789/2904
Title: | Can Offer Size and Transaction Volume Predict IPO Underpricing? Evidence from Emerging Markets in Africa |
Authors: | Cheboi Yegon, Josephat |
Keywords: | IPO Underpricing Offer Size Transaction Volume Emerging Markets & Africa |
Issue Date: | 2019 |
Publisher: | Stratford Peer Reviewed Journals and Book |
Abstract: | The debate on why firms underprice initial public offering (IPO) has never been laid to rest. Driven by this phenomenon of IPO underpricing, this paper sought to examine the determinants of IPO underpricing in developing cou ntries, using African countries as a case study. Specifically, the study examined the effect of offer size and transaction volume on IPO underpricing. Panel d ata was collected for all firms that issued IPOs in Nairobi Securities Exchange, Egyptian Exchange and Johannesburg Stock Exchange for a period of fifteen years (1996 to 2011). The results showed that transaction volume had a negative and significant effect on IPO underpricing ( β = - 0.074; p< 0. 05) while offer size had no significant effect (β = - 0.0 35; p>0.05) . The study recommends that issuers should take special consideration on transaction volume to maximize the return to investors |
URI: | http://ir.mu.ac.ke:8080/jspui/handle/123456789/2904 |
ISSN: | 2616 - 4965 |
Appears in Collections: | School of Business and Economics |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Cheboi Yegon Josephat.pdf | 534.97 kB | Adobe PDF | View/Open |
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.