Informatics Publishing Limited

Hossein Izadi ¹, Tayebe Hozi ²

Affiliations
1 Management and Accounting faculty, Eslamshahr Azad University, Eslamshahr, IR
2 Department of Accounting, Qom Science and Research Branch, Islamic Azad University, Qom -37185-364, IR

Abstract

Background/Objectives: In public offer of shares, Pricing should be done carefully. it is necessary to know impact of purchasing shares from the initial public offering on the efficiency and increase shareholder wealth. Methods/Statistical Analysis: Variables of research were studied in the first step. Rah Avard Novin software was used to analyze data. Excel is used for calculate of variables of research. Eviews software was used for test of hypotheses of research by descriptive and inferential statistics including correlation analysis. Results: There is a negative significant relationship between Annual abnormal return and independent variable share prices. It has a positive significant relationship with offered shares amount. Conclusion/Application: It is recommended to the managers and stockholders of the companies that it has a significant relationship with concentrated ownership. Intrinsic stock value is more confident indicator for wealth measurement for shareholders.

Keywords

Abnormal Returns, Ownership Concentration, Price, The Initial Public Offering, Volume

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