Volume : III, Issue : VI, June - 2014

Persistence of Listing Day Abnormal Returns on Stocks in Indian Stock Market–An Analysis

Subrahmanya Kumar N.

Abstract :

IPOs have attracted investors considerably in India. Since IPO stocks are new in the market without past data for analysis, their performance in the market is crucial for the investors, company as well as to the economy at large. This study aims at understanding whether the IPOs that have taken place in the Indian market over the years have earned better returns than the market on the day of listing and if so whether it has sustained for a considerable duration of time and thereby understands whether an IPO investment is suitable for long term holding period. The study, with a sample of 50 IPO stocks, finds that generally the IPO stocks enjoy positive market adjusted abnormal returns in the initial day of listing but it does not persist for considerable duration of time which is not healthy for investors, company and economy at large.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Subrahmanya Kumar N / Persistence of Listing Day Abnormal Returns on Stocks in Indian Stock Market – An Analysis / International Journal of Scientific Research, Vol.3, Issue.6 June 2014

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