Abstract

The main aim of this study is to examine the perception of investors towards initial public offering (IPO), to analyze the relationship between different factors (quality management, company goodwill, company performance, company sector, and market information) and investment decision to examine the factors that impact in IPO to making an investment decision. This research used primary data. The data was collected from 290 respondents which were related to five different brokerage firms at Kathmandu district. The inferential analysis was preferred in SPSS by using statistical tools such as correlation and regression analysis to analyze the relationship between variables and the impact of different factors on investment decisions. The study revealed that quality management, company goodwill, company performance, company sector, and market information are the highly considerable factors before making investment decisions in IPO.
 

Highlights

  • The selling of business shares to the public for the first time is an initial public offering (IPO)

  • The financial market provides a platform to buyers and sellers, to meet and trade assets at a price determined by the demand and supply forces

  • The results show that a one-unit increase in company performance would lead to a 0.205-unit increase in investment decision keeping other variables constant

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Summary

Introduction

The selling of business shares to the public for the first time is an initial public offering (IPO). The main aim of Initial Public offering (IPO) to raise the capital. Companies generating beginning capital through personal loan, equity, family and friends. The financial market provides a platform to buyers and sellers, to meet and trade assets at a price determined by the demand and supply forces. Financial market is broadly classified into two types on the basis of maturity - money market and capital market. It is divided in to two types - primary market and secondary market. Primary market is a financial market where company is listed on an exchange, for the first time, issues new security, or listed companies bring fresh issues (financialjargon.com)

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