International Journal of Management, IT and Engineering
Year : 2014, Volume : 4, Issue : 10
First page : ( 363) Last page : ( 376)
Online ISSN : 2249-0558.

Analyzing initial public offering pricing using meta analyses and forest plots in neyeloff et al. 2012 framework: an investigation

Jindal Mani

Research Scholar, University School of Management, Kurukshetra University, Kurukshetra - 136 119 (Haryana)

Online published on 29 November, 2014.

Abstract

From last decades, an initial public offering market had faced very ups and downs while investing in IPOs. The initial public offering is the first sale of the offerings to the public through stock exchanges. This research paper seeks to explain the implications of pricing an initial public offering and this study is to generalize research findings emanating from the research on the IPO pricing conducted during 2000 to 2012. This study focuses on the initial public offer pricing as to the overpricing and underpricing. To achieve the objective of this study, the previous 20 research studies data are taken as a sample and meta analysis and forests plots using as a statistical tool for analyzing the data. This paper shows that the IPOs are not fairly priced. It finds that the studies data are of fluctuating behavior. These heterogeneous studies show the increasing variability in the initial public offering market. This variability does not only come from the cause of sampling error but can also be in the form of the other factors.

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Keywords

Initial public offering, stock markets, underpricing, overpricing, determinants of pricing, fixed price offer, book building, meta analyses.

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