INVESTORS’ PERCEPTION TOWARDS INITIAL PUBLIC OFFERING IN NEPALESE CONTEXT

Abstract

This dissertation delves into the perspectives of investors regarding Initial Public Offerings (IPOs) in the Nepalese market. It particularly examines the impact of various factors, including proficient management strategies, corporate standing, financial achievements, industry domain, and accessibility to market intelligence, on investment choices. Using data from 150 IPO investors in Kathmandu Valley, the study employs descriptive and co-relational research designs, alongside correlation matrix and regression analysis, to achieve its objectives of assessing investor perceptions, analyzing relationships between factors, and examining their impact on investment decisions. The findings underscore significant associations between predictors and investment decisions. Quality management emerges as a key driver, positively correlated with company goodwill, company performance, and market information, but negatively correlated with company sector. Similarly, company goodwill shows strong positive correlations with company performance and market information, yet a strong negative correlation with company sector. Conversely, company performance exhibits a moderate positive correlation with market information but lacks significance in relation to investment decisions. Company sector displays a strong negative correlation with market information and a moderate negative correlation with investment decisions. Interestingly, market information shows no significant correlation with investment decisions. Regression analysis confirms the substantial portion of investment decision variance explained by predictors, with quality management, company sector, and market information significantly affecting investment decisions, while company goodwill and company performance exhibit insignificant impact. This study contributes to existing literature by reaffirming the importance of quality management, company sector, and market information in shaping investment decisions in IPOs. However, it calls attention to the need for further research to explore additional factors and reconcile conflicting findings across studies. For investors, understanding the significance of quality management, sector dynamics, and market information is crucial for making informed investment decisions. Key Words: Quality Management, Company Goodwill, Company Performance, Company Sector, Market Information, Investment Decisions