Investigating the relationship between the total stock price index and the initial pricing of stocks in the initial public offering in the Tehran Stock Exchange

Number of pages: 180 File Format: word File Code: 32370
Year: Not Specified University Degree: Master's degree Category: Librarianship
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  • Summary of Investigating the relationship between the total stock price index and the initial pricing of stocks in the initial public offering in the Tehran Stock Exchange

    Dissertation for Master's degree

    Direction: Accounting

    Abstract:

    In this research, the relationship between the total stock index and initial stock pricing in the Tehran Stock Exchange for 103 companies whose shares over the time domain 1382 to 1388 was presented to the public and reviewed. EXCEL software was used to analyze the data and SPSS software was used to test the hypotheses. The following results have been obtained from the research:

    Main hypothesis: There is a relationship between IPO (stock price in initial public offering) and total stock index in Tehran Stock Exchange.

    In this hypothesis that examines the relationship between IPO (stock price in initial public offering) and total stock index, Pearson's correlation test has been used, the level of significance of the test shows (0.395) This test is not significant at any level (1 percent and 5 percent), so no relationship has been established between IPO (stock price in initial public offering) and the general index of the stock market in this research.

    First hypothesis: There is a relationship between IPO (stock price in initial public offering) and the annual abnormal return in Tehran Stock Exchange.

    In this hypothesis, the relationship between IPO (stock price in initial public offering) and examines the annual abnormal return. Pearson's correlation test is used. The significance level of the test shows (0.455) that this test is not significant at any level (1 percent and 5 percent). Therefore, no relationship has been established between IPO (stock price in initial public offering) and annual abnormal return in this research.

    Second hypothesis: between IPO (stock price) In the initial public offering) and the degree of ownership concentration in Tehran Stock Exchange, there is a relationship.

    In this hypothesis that examines the relationship between the IPO (stock price in the initial public offering) and the direction of ownership concentration, the Pearson correlation test has been used. The concentration of ownership of the relationship has been established. The obtained correlation value (0.239) shows that this relationship is direct.

    Third hypothesis: There is a relationship between IPO (stock price in initial public offering) and the volume of shares offered in the Tehran Stock Exchange.

    In this hypothesis, the relationship between IPO (stock price in initial public offering) and volume It examines the shares offered in the market, Pearson's correlation test is used, the significance level of the test shows (0.000) that this test is significant at the 1% level, so a relationship has been established between the IPO (stock price in the initial public offering) and the amount of shares offered in the market. The obtained correlation value (-0.435) shows that this relationship is inverse.

    Fourth hypothesis: There is a relationship between the degree of concentration of ownership and the total stock index in Tehran Stock Exchange.

    In this hypothesis, which examines the relationship between the degree of concentration of ownership and the total stock index, the Pearson correlation test was used and the significance level of the test shows (0.238) This test is not significant at any level (1 percent and 5 percent), so there is no relationship between the degree of concentration of ownership and the total index of the stock market in this research. has economic Investment managers and other natural and legal persons who trade stocks and other financial assets in this market, in order to maintain and increase the value of their portfolio of investments, need to examine the various factors affecting the investment returns of their financial assets under different economic conditions. In recent years, many companies have entered the Tehran Stock Exchange for the first time by issuing new shares.Since the resources at the disposal of these companies are not enough to use new investment opportunities, one of the basic goals of economic units to enter the capital market is financing for growth and development and achieving predetermined long-term goals. If the economic unit is large enough and has a documented history that shows that the unit can stand on its own feet and has the power to earn profits and income, the supply of shares will be much easier. There is notification to possible applicants for buying shares. On the other hand, if the capital market is efficient and active and has a specific and organized mechanism that can attract sufficient liquidity for the offered shares, the suppliers of new shares can easily offer their shares in the stock exchange for sale to the public; This issue is important because if the stock price increases after the initial offering, it will cause more people to accept the next purchase of the company's shares, and otherwise, the subsequent plans to sell shares will fail. The main issue in this research is the examination of the total stock index and the abnormal return of the stock in the Tehran Stock Exchange; in addition to that, the effect of the stock price, the volume of shares offered, the performance of the new shares will be examined. In this chapter, the basic questions of the research are stated, the importance and necessity of conducting this research and the goals of the above research are discussed, and four aspects of the research conducted in this field and the research model, the method of measuring research variables, research hypotheses, and at the end the definition of the words and terms used will be discussed.

    2-1 Statement of the problem style="direction: rtl;">The growth and development of any country requires the use of resources in an optimal way and directing it in the right direction. In every society, various institutions can take steps towards the realization of this goal and play an effective role in this way. Capital markets and their related institutions are one of the most important effective factors in this process. Despite the variety and number of institutions related to the capital market, Tehran Stock Exchange is considered the most important and main capital exchange center. It is obvious that the efficiency of this institution requires correct decision-making by the factors present in it. Every day, a large number of companies enter the capital market for the first time by issuing shares. Usually, these companies grow so fast that their financial resources are not enough to support the development of these companies. Since financing is a very important step in the growth of companies, it is important for these companies that their stock prices reflect the true value of their assets and investment opportunities. On the other hand, the most important active group in the capital market are potential investors, so their appropriate decisions can play a role in directing funds and their optimal allocation. Public offering of shares is one of the most common methods of transferring public companies to the private sector. In this method, the government offers all or part of its share in the unit subject to transfer to the public in the form of shares. It is worth noting that this work is currently usually done through the Tehran Stock Exchange. Undoubtedly, proper pricing of initial public offering shares of companies that enter the capital market for the first time is very important; Because if the IPO price is set lower than the actual (intrinsic value), the company will not get the financial resources it needs and if the IPO price is set higher than the reality, the investors will refrain from buying the shares and as a result, the company will be deprived of obtaining the required financial resources. For a long time, the performance of public offering stocks has attracted the attention of researchers and financial economists. According to the definition of the hypothesis of efficient capital markets, the stock price at any moment of time reflects the intrinsic value of the stock according to the available and related information in the market. 

    Abstract:

    In this study is to scrutinize relationship between total stock index and initial pricing stock in Tehran stock exchange for 103 companies which offer their share to public during 1382-1388. For analysis of data obtained from any Excel software and for data to test this hypothesis with the help of SPSS software use.

  • Contents & References of Investigating the relationship between the total stock price index and the initial pricing of stocks in the initial public offering in the Tehran Stock Exchange

    List:

    Abstract: 1

    Introduction: 3

    Chapter One: General Research

    1-1 Introduction. 5

    2-1 Statement of the problem. 5

    3-1 theoretical framework of the research. 7

    4-1 research hypotheses. 9

    5-1 Research objectives. 9

    6-1 The importance and necessity of conducting research. 9

    7-1 Limits of information. 10

    8-1 Definition of words and terms. 10

    Chapter Two: Review of Research Literature

    1-2 Introduction. 14

    2-2 financial market. 15

    1-2-2 Economic functions of the financial market. 15

    2-3 classification of financial markets. 17

    1-3-2 money market. 17

    2-3-2 Capital market. 17

    4-2 History of stock market and securities in the world. 22

    1-4-2 History of Tehran Stock Exchange. 22

    5-2 Definition of stock exchange. 25

    6-2 An overview of the types of companies admitted to the Tehran Stock Exchange. 25

    1-6-2 Types of investment companies. 25

    2-7 Property. 28

    8-2 Financial assets. 28

    9-2 Securities. 30

    10-2 Common Stock. 30

    11-2 Stock returns. 31

    12-2 Realized return versus expected return. 31

    1-12-2 Realized return. 31

    2-12-2 Expected return. 31

    13-2 Return components. 32

    1-13-2 interest received. 32

    2-13-2 capital profit (loss). 32

    14-2 Initial Public Offering. 34

    1-14-2 Use of underwriting services of financial advisors and sales agents. 38

    2-14-2 The usual method of offering shares to different groups of shareholders. 39

    3-14-2 Steps of initial public offering. 39

    4-14-2 Secondary supply. 43

    15-2 Methods of selling shares. 44

    16-2 Capital supply institutions and methods of initial offering of securities. 48

    17-2 Securities supply process. 50

    18-2 The process of companies entering the market. 53

    2-19 Valuation of shares of new companies entering the market. 55

    20-2 Supply of securities in Tehran Stock Exchange. 60

    21-2 stock market indices. 62

    1-21-2 stock price indices. 62

    2-21-2 How to calculate indices 64

    2-3-21 stock indices in the international field. 65

    22-2 Stock price indices in Tehran Stock Exchange. 66

    2-23 Assumptions about short-term abnormal returns in primary offerings. 69

    1-23-2 Hypothesis of information asymmetry. 69

    2-23-2 The hypothesis of marking. 72

    3-23-2 Hypotheses of transient tendencies and interests 73

    4-23-2 Hypothesis of overreaction of investors. 74

    5-23-2 Hypothesis of speculative bubble and hypothesis of hot stock markets. 75

    6-23-2   Presumption of implied insurance against statutory liabilities. 76

    7-23-2 Hypothesis of reputation of capital supply institutions. 77

    8-23-2 Hypothesis of risk aversion estimator of securities sale. 78

    9-23-2 Risk compensation hypothesis and services of primary buyers. 80

    24-2 Application of short-term abnormal return theories and theories in the Iranian stock market. 80

    1-24-2 book value of shares. 81

    2-24-2 The value of shares based on the replacement price of assets after deducting liabilities 81

    3-24-2 The value of shares assuming the continuation of activity. 81

    4-24-2 Share value assuming liquidation. 82

    5-24-2 Inherent value of shares. 82

    6-24-2 Stock value using coefficient. 82

    7-24-2 Share value using the accumulated profit per share and tax reserve deficit per share 83

    8-24-2 Share value using the capital method adjusted by exchange rate. 83

    9-24-2 Stock value using capital method adjusted by inflation rate. 83

    10-24-2 Comparison of stock valuation methods. 84

    11-24-2 Valuation of public companies in Iran. 85

    25-2 Research background. 85

    1-25-2 Internal investigation. 85

    2-25-2 Foreign investigation. 87

    Chapter 3: Research Implementation Method

    1-3 Introduction. 98

    2-3 research method. 98

    3-3 Data analysis 99

    4-3 Statistical population. 99

    5-3 Analytical model of research and method of measuring research variables. 99

    6-3 statistical sample. 103

    7-3 statistical methods used in research. 104

    1-7-3 correlation coefficient. 104

    2-6-3 Klovorov-Smirnoff test. 105

    Chapter Four: Analysis105

    Chapter Four: Data Analysis

    1-4 Introduction. 107

    2-4 descriptive statistics. 107

    3-4 inferential statistics. 112

    1-4-3 Main hypothesis: There is a relationship between IPO (stock price in initial public offering) and the index of total shares in Tehran Stock Exchange. 112

    3-4-2 Sub-hypotheses. 113

    Chapter Five: Conclusions and Suggestions

    5-1 Introduction. 117

    2-5 Statement of results. 117

    2-5-1 The result of the main hypothesis. 117

    2-5-2 The result of sub-hypotheses. 118

    5-2 research limitations. 119

    5-3 suggestions. 120

    Appendixes

    Appendix 1. 122

    Appendix B: List of companies 126

    Sources and sources

    Persian sources. 131

    Latin sources. 133

    Source:

    Persian:

    Azer, A. and Mohammad Momeni. 1385, "Statistics and its application in management", Semit Publications, Volume II, 9th edition, Tehran.

    Betshekan, M., 1375, Quarterly Journal of Accounting Studies, Faculty of Accounting and Management, Allameh Tabatabai University, No. 41375.

    Janani, M., 1382, Considerations in Determining the Value of Companies and Valuing Shares, Bourse Journal, No. 36.

    Jones, Charles Parker, translated by Reza Tehrani and Asgar Nourbakhsh, 1384, "Investment Management", Negah Danesh Publications.

    Jones, Charles Parker, translated by Mohammad Shah Alizadeh, 1380, "Stock Portfolio Management", Academic Society Publications.

    Hafez Nia, M. 1381, "Introduction to Research Methodology in Humanities", Samit Publications, Tehran.

    Khaki, Gha, 1375, "Research Methodology with an Approach to Dissertation Writing", Rekhali Publications, 8th Edition.

    Khatai B. and Ali Seifipour, 1385, "Financial Markets in Iran", Economic Research Journal No. 18.

    Davani, Gha, H. 1381, "Stock Exchange (how to price stocks)", Publishing Institute of Auditing.

    Rai, R., and Ahmed Telangi, 1383, Advanced Investment Management, Semt Publications, first edition.

    Roodpashti Guide, F. and others, 1387, "Markets and Financial Institutions", Azad University Publications.

    Roodpashti Guide, F, 1386, "Collection of Financial and Accounting Articles and Lectures", Azad University Publications.

    Stock Exchange Organization, Collection of Rules and Regulations of the Stock Exchange, Tehran, Farvardin Publishing, 1380.

    Management and Planning Development Organization. Country, 2013, program analysis weekly, third year, number 80,

    Shapouri, M. et al., 2018, financial research, volume 11, number 28.

    Abde Tabrizi, H. 1377, "Collection of Financial and Investment Articles".

    Fabozi, F., Franco Modigliani and Michael Frey, translated by Hossein Abdeh Tabrizi, 1376, "Fundamentals of Markets and Financial Institutions", Aghah Publications.

    Karami, 1380, "Financial Markets in Iran", Business Research Journal, first edition, number 27.

    Moradinia, Zeint, 1380, Bours Publications. No. 28, p. 32. Mortazavi, Hamid, 1382, Report Monthly, Economic Articles Section, No. 145. Mahdovian and Bahrami, 1381, "How to invest in the stock market". Niko Maram, H. and others, 1385, "Dictionary of Specialized Terms", Publications of the Research Institute of Economics and Finance.

    23-Neili, M., et al., 1382, summary of studies on the country's industrial development strategy, Sharif University of Technology Publishing Institute.

     

     

     

     

    Latin sources:

     

    1 Aggarwal, Reena, 2000, "Stabilization Activities by underwriters after IPOs", Journal of Finance, 55, 1075-1103.

    2. Anne, Sherman, 2002, "Global Trends in IPO methods": book building Vs. Auction, Review of financial studies, 21 1-37.

    3. Aussenegg, Wolfgang, pegaret, Pichler, and A.stomper, 2003, "IPO Pricing with bookbuilding and a when" – Issued market, 1-54.

    4. Barbara Lee and John Nellis, 1999, "Enterprise reformed privatization in socialist economies", 104. World bank discussion papers, Washington.

    5. Benveniste, Lawrence and Paul Spindt, 1989. "How Investment Bankers Determine the Offer Price and Allocation of New Issues", Journal of Financial Economics, 24, 343-361.

    6. Carter, R.B. S. Anaster, 1990, "Initial Public Offerings and underwriter reputation", Journal of finance, 45, 1045-1067.

    7.

Investigating the relationship between the total stock price index and the initial pricing of stocks in the initial public offering in the Tehran Stock Exchange