EXECUTIVE SUMMARY: The main objective of this study was firstly to identify the major company specific factors that affect IPO investment decision. In addition, the study also focused on identifying the major general factors that affect the decision towards IPO and to study public opinion on over subscription of IPO. The study aimed to provide a descriptive analysis of all the variables used, under the present context. In an attempt to achieve the objectives of the study, correlation is used to examine the relationship of selected independent variables with investment decision in IPO as dependent variables. Variables and their proxies are selected on the basis of past studies and their relevance. The variables selected are: goodwill, corporate profile, financial position, size of IPO issued, lack of other investment, short term return, sector performance and market hearsay. The research design adopted in this study is qualitative in nature and it used primary data collected from the respondents. Research was totally based on primary data. Questionnaire is prepared and distributed to 150 respondents and were collected and analyzed substantially. Data are analyzed in SPSS to find out the relationship of the created hypothesis. The study had used descriptive statistics to know the mean, minimum, maximum, standard deviation to measure analysis of data that helps describe, show or summarize data in a meaningful way such that patterns might emerge from the data. Descriptive statistics are used to present quantitative descriptions in a manageable form. The correlation matrix is used to know the variation in dependent variable and independent variable. Lastly, the one sample t-test is used to determine the relationship of dependent variable and independent variable. The analysis has identified that corporate profile, financial position, size of IPO, short term return, market hearsay, goodwill and sector performance have significant impact n investment decision on IPO. The findings seems logical because investors in Nepal usually search financial status of the company prior to making investment since it would determine the company long run and investors of Nepal usually want to hold shares for short duration so short term return being one of the factor on deciding their share value. Similarly, Nepalese investors get encouraged to invest from the market information as well. Lastly, the study suggests that it is important for IPO issuing company to consider these factors while making IPO decisions.
The research finding suggests investor to give each and every general and specific variable assumed in this research as important factors to be considered while making investment decision in IPO. Investors need to analyze and study the available share issuing company’s information first and then decide either to invest or not. Similarly, the regulators must give proper attention to financial and other publications of IPO issuing company so that actual facts and figures get access to investment seeking investors. Lastly, future researchers are suggested to carry out research on a wider geography and demography as this research is only limited to Kathmandu.
The main objective of this study was firstly to identify the major company specific factors that affect IPO investment decision. In addition, the study also focused on identifying the major general factors that affect the decision towards IPO and to study public opinion on over subscription of IPO. The study aimed to provide a descriptive analysis of all the variables used, under the present context. In an attempt to achieve the objectives of the study, correlation is used to examine the relationship of selected independent variables with investment decision in IPO as dependent variables. Variables and their proxies are selected on the basis of past studies and their relevance. The variables selected are: goodwill, corporate profile, financial position, size of IPO issued, lack of other investment, short term return, sector performance and market hearsay. The research design adopted in this study is qualitative in nature and it used primary data collected from the respondents. Research was totally based on primary data. Questionnaire is prepared and distributed to 150 respondents and were collected and analyzed substantially. Data are analyzed in SPSS to find out the relationship of the created hypothesis. The study had used descriptive statistics to know the mean, minimum, maximum, standard deviation to measure analysis of data that helps describe, show or summarize data in a meaningful way such that patterns might emerge from the data. Descriptive statistics are used to present quantitative descriptions in a manageable form. The correlation matrix is used to know the variation in dependent variable and independent variable. Lastly, the one sample t-test is used to determine the relationship of dependent variable and independent variable. The analysis has identified that corporate profile, financial position, size of IPO, short term return, market hearsay, goodwill and sector performance have significant impact n investment decision on IPO. The findings seems logical because investors in Nepal usually search financial status of the company prior to making investment since it would determine the company long run and investors of Nepal usually want to hold shares for short duration so short term return being one of the factor on deciding their share value. Similarly, Nepalese investors get encouraged to invest from the market information as well. Lastly, the study suggests that it is important for IPO issuing company to consider these factors while making IPO decisions.
My foremost gratitude goes to Ace Institute of Management and Pokhara University for encouraging and structuring GRP program as a part of the course and providing me the opportunity for conducting this research.
I would like to
express my heartfelt gratitude to my supervisor Mr. Dipendra Karki who has
relinquished to me without complain, many hours of positive criticism, comments
and professional insights that have enabled me to come up with a refined
research.
){kind=link}
0 Comments