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What Determines Post-IPO Market Performance: Evidence From Turkish IPOs

Author

Listed:
  • Fatih Macit

    (Suleyman Sah Universit, Department of Economics)

  • Ahmet Sekreter

    (Suleyman Sah University, Department of International Trade and Finance)

  • Selver Seda Ada

    (Suleyman Sah University, Department of Business Administration)

  • Esra Simsek

    (Suleyman Sah University, Department of International Trade and Finance)

Abstract

In this paper we investigate the determinants of the short-run post-IPO market performance of IPO stocks for Turkish markets. We looked at various firm specific accounting and IPO related variables namely the ratio of operating profit to total sales, the ratio of total debt to total assets, IPO size, public float, the ratio of shares that are purchased by foreign investors, and the market value to book value ratio. We find that IPO size appears to be the most important variable in determining the post-IPO market performance of IPO stocks. Large IPO’s tend to have a better post-IPO market performance. Besides that firms with a larger debt ratio are expected to show a better performance in the short-run. It is seen that as public float increases IPOs tend to show a poorer performance.

Suggested Citation

  • Fatih Macit & Ahmet Sekreter & Selver Seda Ada & Esra Simsek, 2015. "What Determines Post-IPO Market Performance: Evidence From Turkish IPOs," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 4(2), pages 73-79, June.
    • Handle: RePEc:rfh:bbejor:v:4:y:2015:i:2:p:73-79
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Post-IPO performance; Turkish stock market;

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G4 - Financial Economics - - Behavioral Finance
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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