Abstract

Subject. The article addresses anticipation of risks and returns of IPOs on the NASDAQ stock exchange, considering the asymmetric information. Objectives. The purpose is to identify factors that determine the risk and returns of IPOs, to build predictive models on their basis. Methods. The study draws on analysis and synthesis, as well as logistic regression models. Results. The paper reveals variables that determine the risk and return of an IPO, and derives equations of corresponding predictive models. Conclusions. I built mathematical models that can be used by analysts on financial markets, investment companies, and funds to make a decision on advisability of investing in company shares at the IPO stage.

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