PUBLIC RESPONSE TO INITIAL PUBLIC OFFERING IN NEPALESE MARKET
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Shanker Dev Campus
Abstract
In the current age of wealth maximization and amidst economic challenges such as inflation
and the time value of money, individuals are increasingly turning to investment opportunities
in the securities market to secure their financial futures. This study primary objective is to
evaluate the factors that shape investment decisions related to IPO.
The research methodology employed a combination of descriptive statistics and a causal
comparative research design, encompassing the entire population of the Kathmandu Valley.
A sample size of 385 was selected using convenience sampling, with quantitative data
collected through structured survey questionnaires using a five-point Likert scale. Data
analysis was facilitated through Microsoft Excel and SPSS software, employing various
statistical techniques such as means, standard deviations, correlations, and regression
analyses.
Quality Management and Company Goodwill are viewed favorably, while Company
Performance, Company Sector, and Market Information are also perceived positively,
emphasizing their significance in investment choices. Consistently positive and highly
significant correlations were found between these factors and investment behavior, implying
that as these factors' values increase, the public responds more favorably to IPO investments.
Quality Management, Company Goodwill, Company Performance, Company Sector, and
Market Information play crucial roles in shaping investment behavior. Quality Management
demonstrated a robust positive correlation, and Company Goodwill displayed a strong and
significant positive correlation with investment behavior. Company Performance exhibited a
highly positive and significant correlation, while Company Sector displayed a positive and
statistically significant correlation. Market Information showed a substantial and significant
positive correlation with investment behavior.
In conclusion, this research carries implications for businesses and investors in the context of
Kathmandu Valley. It highlights the significance of factors like Quality Management,
Company Goodwill, Company Performance, and Market Information in influencing public
responses to IPOs.