Investors perception and investment decision: An Initial Public Offering prospective

Abstract

This study investigates investor perceptions of Initial Public Offerings (IPOs) in Kathmandu District, Nepal, with a focus on factors such as quality management, company goodwill, company performance, company sector, market information and dependent variables investment decision. Employing a descriptive and causal comparative research design, data from 150 investors were gathered using structured questionnaire surveys and analyzed using SPSS. It is encompass assessing investor attitudes towards IPOs and exploring the relationships between various factors and investment decisions. Results highlight the pivotal role of quality management and customer growth in shaping investor perceptions, with both factors emerging as significant predictors of investment decisions. Conversely, company performance, sector, and market information showed no significant effects. The study offers practical insights for companies planning IPOs and financial professionals, aiding in informed decisionmaking. Theoretically, it enriches the IPO and behavioral finance literature, paving the way for future research. Nonetheless, limitations include reliance on primary data, a constrained sample size, and focus on Kathmandu Valley investors, potentially limiting generalizability. Despite these constraints, the study provides crucial insights into IPO investor behavior, fostering a more resilient investment environment in Nepal. Keywords: Initial Public Offering, Investors Perception, Investment Decision, Quality Management, Company Goodwill