The timing of initial public offerings – non-numerical model based on qualitative trends
The objective of this study is to develop a qualitative model supporting chief financial officers (CFOs) while considering the timing of initial public offerings (IPOs) under conditions of underdeveloped capital markets, where decision making is often made under information shortage. A lack of adequ...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2018-04-01
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| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://journals.vgtu.lt/index.php/JBEM/article/view/1539 |
| _version_ | 1818890646366191616 |
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| author | Tomáš Meluzín Marek Zinecker Adam P. Balcerzak Karel Doubravský Michał B. Pietrzak Mirko Dohnal |
| author_facet | Tomáš Meluzín Marek Zinecker Adam P. Balcerzak Karel Doubravský Michał B. Pietrzak Mirko Dohnal |
| author_sort | Tomáš Meluzín |
| collection | DOAJ |
| description | The objective of this study is to develop a qualitative model supporting chief financial officers (CFOs) while considering the timing of initial public offerings (IPOs) under conditions of underdeveloped capital markets, where decision making is often made under information shortage. A lack of adequate statistical data in connection with turbulently changing environment suggests that additional research is needed to develop new IPO timing models based not only on statistical analyses. We used a qualitative research approach based on trends, which are increasing, constant or decreasing. Firstly, we identified key variables influencing IPO timing, which have sufficient support in the relevant IPO academic literature, e.g. GDP growth rates, level of compliance, stock market returns, etc. Next, a qualitative model working with 9 variables was developed. The result is represented by 19 scenarios and their qualitative solutions. The transitional graph represents all possible transitions among the 19 scenarios. The main message of the findings presented is what scenarios can occur and what actions might be implemented by CFOs in order to increase the chances of IPO success. We believe that our findings provide valuable implications for local issuers, investment bankers, stock exchanges and macroeconomic policy makers. |
| first_indexed | 2024-12-19T17:28:13Z |
| format | Article |
| id | doaj.art-c9cf1f5c88744452a574b29d807d7cd9 |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-12-19T17:28:13Z |
| publishDate | 2018-04-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-c9cf1f5c88744452a574b29d807d7cd92022-12-21T20:12:30ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332018-04-0119110.3846/jbem.2018.1539The timing of initial public offerings – non-numerical model based on qualitative trendsTomáš Meluzín0Marek Zinecker1Adam P. Balcerzak2Karel Doubravský3Michał B. Pietrzak4Mirko Dohnal5Brno University of Technology, Faculty of Business and Management, Kolejní 2906/4, 61200 Brno, Czech RepublicBrno University of Technology, Faculty of Business and Management, Kolejní 2906/4, 61200 Brno, Czech RepublicNicolaus Copernicus University in Toruń, Faculty of Economic Sciences and Management, ul. Gagarina 13a, 87-100 Toruń, PolandBrno University of Technology, Faculty of Business and Management, Kolejní 2906/4, 61200 Brno, Czech RepublicNicolaus Copernicus University in Toruń, Faculty of Economic Sciences and Management, ul. Gagarina 13a, 87-100 Toruń, PolandBrno University of Technology, Faculty of Business and Management, Kolejní 2906/4, 61200 Brno, Czech RepublicThe objective of this study is to develop a qualitative model supporting chief financial officers (CFOs) while considering the timing of initial public offerings (IPOs) under conditions of underdeveloped capital markets, where decision making is often made under information shortage. A lack of adequate statistical data in connection with turbulently changing environment suggests that additional research is needed to develop new IPO timing models based not only on statistical analyses. We used a qualitative research approach based on trends, which are increasing, constant or decreasing. Firstly, we identified key variables influencing IPO timing, which have sufficient support in the relevant IPO academic literature, e.g. GDP growth rates, level of compliance, stock market returns, etc. Next, a qualitative model working with 9 variables was developed. The result is represented by 19 scenarios and their qualitative solutions. The transitional graph represents all possible transitions among the 19 scenarios. The main message of the findings presented is what scenarios can occur and what actions might be implemented by CFOs in order to increase the chances of IPO success. We believe that our findings provide valuable implications for local issuers, investment bankers, stock exchanges and macroeconomic policy makers.https://journals.vgtu.lt/index.php/JBEM/article/view/1539initial public offeringIPOtimingdeterminantsmacroeconomicsmicroeconomics |
| spellingShingle | Tomáš Meluzín Marek Zinecker Adam P. Balcerzak Karel Doubravský Michał B. Pietrzak Mirko Dohnal The timing of initial public offerings – non-numerical model based on qualitative trends Journal of Business Economics and Management initial public offering IPO timing determinants macroeconomics microeconomics |
| title | The timing of initial public offerings – non-numerical model based on qualitative trends |
| title_full | The timing of initial public offerings – non-numerical model based on qualitative trends |
| title_fullStr | The timing of initial public offerings – non-numerical model based on qualitative trends |
| title_full_unstemmed | The timing of initial public offerings – non-numerical model based on qualitative trends |
| title_short | The timing of initial public offerings – non-numerical model based on qualitative trends |
| title_sort | timing of initial public offerings non numerical model based on qualitative trends |
| topic | initial public offering IPO timing determinants macroeconomics microeconomics |
| url | https://journals.vgtu.lt/index.php/JBEM/article/view/1539 |
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