Competitive and contagion effect of initial public offerings in India: An empirical study
This study aims to empirically examine the impact of initial public offerings (IPOs) on the equity share prices of industry rivals. The cross-industry sample comprises 13 companies across six different industries in the Indian market. The study investigates four key variables: the stock returns of i...
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| Format: | Article |
| Language: | English |
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Elsevier
2023-01-01
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| Series: | Social Sciences and Humanities Open |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2590291123002486 |
| _version_ | 1797374070179758080 |
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| author | Rahul Pradeep Pulikottil |
| author_facet | Rahul Pradeep Pulikottil |
| author_sort | Rahul Pradeep Pulikottil |
| collection | DOAJ |
| description | This study aims to empirically examine the impact of initial public offerings (IPOs) on the equity share prices of industry rivals. The cross-industry sample comprises 13 companies across six different industries in the Indian market. The study investigates four key variables: the stock returns of industry rivals before and after the IPO of a new market entrant, as well as the daily traded volume of both the market entrant and industry rivals in the days following the IPO. The analysis reveals a significant association between the stock prices of industry rivals before and after the listing date of a market entrant, as evidenced by the adoption of three distinct time windows. However, no significant relationship is observed between the daily traded volume of market entrants and industry rivals. The results reveal the presence of the competitive and contagion effect and the lack of active capitalisation of this short-term phenomenon by investors. |
| first_indexed | 2024-03-08T19:00:33Z |
| format | Article |
| id | doaj.art-1687c3c3a70248579dba4e00da580f63 |
| institution | Directory Open Access Journal |
| issn | 2590-2911 |
| language | English |
| last_indexed | 2024-03-08T19:00:33Z |
| publishDate | 2023-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Social Sciences and Humanities Open |
| spelling | doaj.art-1687c3c3a70248579dba4e00da580f632023-12-28T05:19:19ZengElsevierSocial Sciences and Humanities Open2590-29112023-01-0181100643Competitive and contagion effect of initial public offerings in India: An empirical studyRahul Pradeep Pulikottil0CHRIST (Deemed to Be University), Karnataka, IndiaThis study aims to empirically examine the impact of initial public offerings (IPOs) on the equity share prices of industry rivals. The cross-industry sample comprises 13 companies across six different industries in the Indian market. The study investigates four key variables: the stock returns of industry rivals before and after the IPO of a new market entrant, as well as the daily traded volume of both the market entrant and industry rivals in the days following the IPO. The analysis reveals a significant association between the stock prices of industry rivals before and after the listing date of a market entrant, as evidenced by the adoption of three distinct time windows. However, no significant relationship is observed between the daily traded volume of market entrants and industry rivals. The results reveal the presence of the competitive and contagion effect and the lack of active capitalisation of this short-term phenomenon by investors.http://www.sciencedirect.com/science/article/pii/S2590291123002486Initial public offeringSupply effectCompetitive effectContagion effectInvestment strategy |
| spellingShingle | Rahul Pradeep Pulikottil Competitive and contagion effect of initial public offerings in India: An empirical study Social Sciences and Humanities Open Initial public offering Supply effect Competitive effect Contagion effect Investment strategy |
| title | Competitive and contagion effect of initial public offerings in India: An empirical study |
| title_full | Competitive and contagion effect of initial public offerings in India: An empirical study |
| title_fullStr | Competitive and contagion effect of initial public offerings in India: An empirical study |
| title_full_unstemmed | Competitive and contagion effect of initial public offerings in India: An empirical study |
| title_short | Competitive and contagion effect of initial public offerings in India: An empirical study |
| title_sort | competitive and contagion effect of initial public offerings in india an empirical study |
| topic | Initial public offering Supply effect Competitive effect Contagion effect Investment strategy |
| url | http://www.sciencedirect.com/science/article/pii/S2590291123002486 |
| work_keys_str_mv | AT rahulpradeeppulikottil competitiveandcontagioneffectofinitialpublicofferingsinindiaanempiricalstudy |