UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD

Alper Ataker; Oktay Taş

doi:10.17261/Pressacademia.2024.1900

UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD

Abstract

Purpose- The research investigates the impact of the COVID-19 pandemic on Initial Public Offering (IPO) mispricing in the Turkish IPO market from 2010 to 2022. The study aims to offer valuable insights into the behavior of IPOs during this period, aiding investors and issuers in understanding the effects of the pandemic on IPO pricing. The findings may empower stakeholders, including investors, regulators, and market participants, to make more informed decisions in times of market volatility and uncertainty. Methodology- The study utilizes two methods, ordinary least squares (OLS) and quantile regression (QR), to analyze the impact of independent variables on IPO mispricing. OLS focuses on average effects, overlooking nuances in mispricing distribution. In contrast, QR allows the exploration of variable effects at different mispricing levels, accommodating the asymmetric distribution of returns. Employing QR helps identify specific impacts of variables on IPOs within distinct mispricing levels, addressing distribution heterogeneity observed in the sample. This robust approach enhances the study's ability to capture a more comprehensive understanding of the relationship between independent variables and IPO mispricing. Findings- The study reveals a substantial increase in IPO mispricing during the COVID-19 period, attributed to factors like heightened asymmetric information, reduced IPO volume, and decreased demand. Notably, the impact extends beyond the pandemic period, indicating a lasting effect on IPO mispricing. Sector-specific effects are observed, with all sectors, except Consumer Non-Cyclicals, showing significance in first-day returns. However, for 1-year returns, only the Finance and Energy sectors exhibit significance, with the latter slightly exceeding the 10% limit. Conclusion- The study provides robust evidence of increased IPO mispricing during the COVID-19 pandemic, highlighting the persistent impact of the crisis on financial markets, as well as sector-specific nuances influencing mispricing levels

Keywords

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Details

Primary Language

English

Subjects

Finance, Business Administration

Journal Section

Research Article

Authors

Alper Ataker ^* This is me
0009-0001-3049-203X
Türkiye

Oktay Taş This is me
0000-0002-7570-549X
Türkiye

Publication Date

June 3, 2024

Submission Date

January 21, 2024

Acceptance Date

May 19, 2024

Published in Issue

Year 2024 Volume: 13 Number: 1

DOI

https://doi.org/10.17261/Pressacademia.2024.1900

IZ

https://izlik.org/JA77MC76RY

Cite

RIS / Bibtex

APA

Ataker, A., & Taş, O. (2024). UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD. Journal of Business Economics and Finance, 13(1), 37-54. https://doi.org/10.17261/Pressacademia.2024.1900

AMA

1.Ataker A, Taş O. UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD. JBEF. 2024;13(1):37-54. doi:10.17261/Pressacademia.2024.1900

Chicago

Ataker, Alper, and Oktay Taş. 2024. “UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD”. Journal of Business Economics and Finance 13 (1): 37-54. https://doi.org/10.17261/Pressacademia.2024.1900.

EndNote

Ataker A, Taş O (June 1, 2024) UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD. Journal of Business Economics and Finance 13 1 37–54.

IEEE

[1]A. Ataker and O. Taş, “UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD”, JBEF, vol. 13, no. 1, pp. 37–54, June 2024, doi: 10.17261/Pressacademia.2024.1900.

ISNAD

Ataker, Alper - Taş, Oktay. “UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD”. Journal of Business Economics and Finance 13/1 (June 1, 2024): 37-54. https://doi.org/10.17261/Pressacademia.2024.1900.

JAMA

1.Ataker A, Taş O. UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD. JBEF. 2024;13:37–54.

MLA

Ataker, Alper, and Oktay Taş. “UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD”. Journal of Business Economics and Finance, vol. 13, no. 1, June 2024, pp. 37-54, doi:10.17261/Pressacademia.2024.1900.

Vancouver

1.Alper Ataker, Oktay Taş. UNDERPRICING OF IPOS (INITIAL PUBLIC OFFERING) IN BORSA ISTANBUL: THE EFFECT OF COVID-19 PANDEMIC PERIOD. JBEF. 2024 Jun. 1;13(1):37-54. doi:10.17261/Pressacademia.2024.1900