An Empirical Analysis of Factors Influencing Investor Participation in IPOs

Abstract

Investing in Initial Public Offerings (IPOs) is a significant financial decision that can yield substantial returns but also involves inherent risks. This study delves into the crucial factors that influence investor participation in IPOs and highlights the importance of considering elements such as the financial performance of the company, the economic conditions of the country, the company's product line, and the quality of its management. The research objectives encompass the analysis of these factors and an examination of the relationship between the investors' profiles, which include variables like gender, age, monthly income, occupation, and education, and their attitudes towards IPOs. The study, with a sample size of 200 investors based in Ahmedabad city, aims to provide valuable insights into the decision-making processes of investors and contribute to a better understanding of the dynamics governing IPO investments. This research is relevant not only for investors but also for companies planning to go public and for regulatory authorities seeking to enhance the transparency and efficiency of IPO markets.