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The Relationship Between IPO and Macroeconomics Factors: an Empirical Analysis from UK Market

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  • Eliana Angelini

    (Department of Economics, "G.d'Annunzio" University of Chieti-Pescara)

  • Matteo Foglia

    (Department of Economics, "G.d'Annunzio" University of Chieti-Pescara)

Abstract

The purpose is to analyze the short and long run equilibrium relationship between the external factors and the IPO for UK market over the period of 1996 to 2016, in order to provide: i) how macroeconomic conditions influence IPOs activities and ii) how long the effects last (shock). The results of the correlation analysis show that the hypothesis that the business cycle, volatility and interest rate have explanatory power for the number of IPOs is supported by empirical evidence. On the other hand, we found no evidence that the stock market return affects the IPO activities.

Suggested Citation

  • Eliana Angelini & Matteo Foglia, 2018. "The Relationship Between IPO and Macroeconomics Factors: an Empirical Analysis from UK Market," Annals of Economics and Finance, Society for AEF, vol. 19(1), pages 319-336, May.
    • Handle: RePEc:cuf:journl:y:2018:v:19:i:1:angelini:foglia
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    Cited by:

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    2. Waqas Mehmood & Rasidah Mohd-Rashid & Abd Halim Ahmad, 2023. "The Variability of IPO Issuance: Evidence from Pakistan Stock Exchange," Global Business Review, International Management Institute, vol. 24(5), pages 1025-1040, October.
    3. Rzeszutek, Marcin & Godin, Antoine & Szyszka, Adam & Augier, Stanislas, 2020. "Managerial overconfidence in initial public offering decisions and its impact on macrodynamics and financial stability: Analysis using an agent-based model," Journal of Economic Dynamics and Control, Elsevier, vol. 118(C).
    4. Mrutyunjaya SAHOO & Praveen SAHU, 2023. "Does the effectiveness of money supply and foreign direct investment determine the industrial growth performance in India?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(635), S), pages 83-102, Summer.

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    More about this item

    Keywords

    UK IPO; Long-run relationship; External factors; Cointegration; VECM;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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