Relationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange

This study investigates whether and how accounting conservatism impacts on underpricing the Initial Public Offerings (IPOs) in the Tehran Stock Exchange. The market-adjusted abnormal return of firms for the first trading month has been taken as proxy for the underpricing. The regression analysis of...

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Autores principales:	Sasan Mehrani, Mojteba Safipour Afshar
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2014
Materias:	conservatism initial public offerings underpricing ipos market-adjust abnormal return Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/250d7df0b6de4e95b0e099f20d30b882
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spelling	oai:doaj.org-article:250d7df0b6de4e95b0e099f20d30b8822021-11-04T19:47:20ZRelationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange2008-89142476-292X10.22103/jak.2014.859https://doaj.org/article/250d7df0b6de4e95b0e099f20d30b8822014-12-01T00:00:00Zhttps://jak.uk.ac.ir/article_859_43b85db56696273e5f930a45bd3634f3.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThis study investigates whether and how accounting conservatism impacts on underpricing the Initial Public Offerings (IPOs) in the Tehran Stock Exchange. The market-adjusted abnormal return of firms for the first trading month has been taken as proxy for the underpricing. The regression analysis of 41 companies that went to the public through the IPOs during March, 2004 to February, 2012, presents results that reveal the IPOs underpricing in the Iranian market is inversely related to accounting conservatism. This implies that accounting conservatism, by more verifiability for recognition of gains and losses as well as limiting the opportunistic behavior of managers, reduces information asymmetry of issuers and other stakeholders of IPOs that leads to lowering underpricing IPOsSasan MehraniMojteba Safipour AfsharShahid Bahonar University of Kermanarticleconservatisminitial public offeringsunderpricing iposmarket-adjust abnormal returnAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 5, Iss 18, Pp 49-65 (2014)
institution	DOAJ
collection	DOAJ
language	FA
topic	conservatism initial public offerings underpricing ipos market-adjust abnormal return Accounting. Bookkeeping HF5601-5689
spellingShingle	conservatism initial public offerings underpricing ipos market-adjust abnormal return Accounting. Bookkeeping HF5601-5689 Sasan Mehrani Mojteba Safipour Afshar Relationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange
description	This study investigates whether and how accounting conservatism impacts on underpricing the Initial Public Offerings (IPOs) in the Tehran Stock Exchange. The market-adjusted abnormal return of firms for the first trading month has been taken as proxy for the underpricing. The regression analysis of 41 companies that went to the public through the IPOs during March, 2004 to February, 2012, presents results that reveal the IPOs underpricing in the Iranian market is inversely related to accounting conservatism. This implies that accounting conservatism, by more verifiability for recognition of gains and losses as well as limiting the opportunistic behavior of managers, reduces information asymmetry of issuers and other stakeholders of IPOs that leads to lowering underpricing IPOs
format	article
author	Sasan Mehrani Mojteba Safipour Afshar
author_facet	Sasan Mehrani Mojteba Safipour Afshar
author_sort	Sasan Mehrani
title	Relationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange
title_short	Relationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange
title_full	Relationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange
title_fullStr	Relationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange
title_full_unstemmed	Relationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange
title_sort	relationship between conservatism and underpricing initial public offerings in tehran stock exchange
publisher	Shahid Bahonar University of Kerman
publishDate	2014
url	https://doaj.org/article/250d7df0b6de4e95b0e099f20d30b882
work_keys_str_mv	AT sasanmehrani relationshipbetweenconservatismandunderpricinginitialpublicofferingsintehranstockexchange AT mojtebasafipourafshar relationshipbetweenconservatismandunderpricinginitialpublicofferingsintehranstockexchange
_version_	1718444577757593600

Relationship between Conservatism and Underpricing Initial Public Offerings in Tehran Stock Exchange

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