Determinants of IPO Investment Decisions: Influence of Stock Market Experience on Investment Purposes and Expected Returns.

Autor: Natesh, Manu H., H. N., Srinivas, T. R., Sowbhagya, S., Arpitha, S., Hemavathi, M., Dharanendra
Předmět:
Zdroj: Library of Progress-Library Science, Information Technology & Computer; Jul-Dec2024, Vol. 44 Issue 3, p222-234, 13p
Abstrakt: Purpose: This research aims to ascertain and examine the elements that impact investors' choices to invest in Initial Public Offerings (IPOs). The objective is to assess the way the motivation for investing in IPOs differs depending on investors' level of expertise in the stock market. likewise, the research aims to establish the correlation between the anticipated gains from initial public offering (IPO) investments and the investors' degree of expertise. With a review of these aspects, the study will provide valuable knowledge on the conduct and anticipations of various investor categories. This will enhance knowledge of the dynamics of IPO investments and give guidance to both individual investors and regulators. Design / Methodologies: This study employs an exploratory mixed-methods approach, integrating quantitative and qualitative research methodologies to thoroughly investigate the factors that influence decisions to invest in Initial Public Offerings (IPOs), the differences in investment objectives based on investors' level of experience and the relationship between anticipated returns and investor experience. The study relied on primary data obtained from 84 respondents who were stock market investors in the Bangalore city. The Researchers analysed the data using statistical methods such as frequency table, crosstab analysis, Descriptive statistic, chi-square test, factor analysis and Kruskal-Wallis H test. Findings: The research revealed that seasoned investors place more importance on long-term expansion and strategic diversification when making IPO investments, whilst inexperienced investors tend to concentrate on immediate profits. There is a strong correlation between greater levels of experience and higher anticipated returns, suggesting that seasoned investors have more positive expectations about the returns from IPO investments. Limitations: The study's constraints include the possibility of response bias stemming from self-reported data and a restricted sample size that may not comprehensively reflect the wider community of IPO investors. Likewise, the crosssectional approach only captures investor behaviour at a certain moment, without considering the potential impact of changing market circumstances and shifting investor preferences over time. Originality Value: This research employs both quantitative and qualitative methods to examine the intricate elements that impact IPO investing choices. It provides an in-depth investigation of how investor experience influences investment objectives and anticipated returns. By combining various data sources and research methods, it offers new perspectives on the behaviour of investors in initial public offerings (IPOs), improving understanding for Researchers, professionals and policymakers. [ABSTRACT FROM AUTHOR]
Databáze: Complementary Index