Document Type : Research Paper
Authors
Abstract
In this paper the principle subject is to survey the short-run return of initial public offering (IPO) in Tehran security exchange market. Three empirical patterns are documented and analyzed: short-run underpricing, hot issue markets and long-run underperformance. In this article the IPOs in Tehran stock exchange market since 1378 to 1382 are analyzed. In this period market has extended very much and many IPOs entered it.
In the period in question, the results of this paper indicate that the short-run return of IPOs is higher than the short-run return of the market. This observed pattern is similar to other markets performance around the world. Moreover, the influence of some factors on the underperformance of IPOs is analyzed. Among these factors, only audit firms have influenced the underperformance of IPOs in Tehran market. But considering the joint effect of this factors, also audit firms lost her effect and no one of these factors can explain the observed pattern (underperformance of IPOs) i n Tehran stock exchange.
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