The Determinants of Underpricing and Short-Run Perform of Initial Public Offerings : Evidence from ISE for 1995-2008

This study investigates the existence of underpricing of IPOs in ISE, shortrun perform and the factors influencing this performance and underpricing for the period between 1995 and 2008. Findings in this study present evidence of overperform in short run and underpricing of IPOs in ISE such as other developed and emerging market, and also these results are consistence with other studies in literature. When the regression results for underpricing are analyzed, it is determined that there is more underpricing for the firms with more than 20 years of working period and the firms with fixed priced offer IPOs. The firms which are underpriced for the first day, have uncertainty, use the increase method of capital in IPOs and more than 20 years of working period show over-performances in short-run