پژوهشهای تجربی حسابداری (Jul 2022)
A Model of Factors Affecting Underpricing in IPOs Focusing Accounting Information Role
Abstract
Numerous studies in different capital markets show that stock prices in initial public offerings change after a very short time, resulting in significant and unusual returns, which are referred to as underpricing of initial public offerings. Considering that previous studies, which are mainly based on the theory of information asymmetry and behavioral biases, have considered various and sometimes contradictory reasons as the cause of this phenomenon. This study aims to provide a comprehensive model of the factors explaining this abnormal return. Also, the role of accounting information in explaining this phenomenon is investigated.To discover these factors, the researcher studies the subject literature extensively, uses the qualitative method of theme analysis and interviews experts to extract their opinions. Then extracting repetitive patterns among the opinions and classifying them, the researcher develops a comprehensive model of factors affecting stock price in initial public offerings.In the model presented in this research, four factors of shortcomings of the initial supply process, fundamental factors, behavioral aspects and information content in the initial public offerings lead to underpricing in such a way that by intervening of regulatory bodies in the supply and demand mechanism, pricing errors occur and fundamental factors are not reflected in offering prices. Investors' behavioral aspects and insufficient accounting information content intensify this matter.According to the research findings, those shareholders who analyze the available information, especially accounting information, can gain abnormal returns. Also, the need to provide prospective accounting information in an initial public offering to determine the real share price leads to an increase in accounting information content.
Keywords
