Perception of Investors Towards Initial Public Offering (Ipo) in Nepal (Reference to Surkhet District)

Abstract

Investment in stock market helps to mobilize which in turns helps in development of the economy. Investment in shares will be started from primary market through the purchase of Initial Public Offering and further will be traded in secondary market. The investor can buy and sell the existing shares at the market price in the Nepal Stock Exchange. In Nepal, billions of capitals are raised every year through IPO. Nepalese investor seems to be highly attracted towards the IPO market. This research entitled perception of investors towards initial public offering (IPO) in Nepal with references to Surkhet district. The main purpose of the study is to assess the perception of investor towards IPO, to assess the relationship between different factors (Quality management, Company Goodwill, Company performance, Company sector and Market information) and investment decision in IPO. The correlation results were used to answer the five variables. The Pearson Correlation coefficient between all five independent variables and dependent variable (investment decision) was done, which implies that five variables (quality management, company goodwill, company performance, company sector and market information) are positively correlated at 1% significant level. The research is primarily based on primary data. Data was collected from 100 respondents who were connected at Surkhet district. The descriptive analysis was preferred in SPSS by using statistical tools such as mean and standard deviation. Similarly, correlation analyses were also used to analyze the relationship between variables and impact of different factors on investment decision (dependent variable).