The divergence of opinion and moderating effect of investor's attention and participation in IPO
Subject Areas : Financial Knowledge of Securities Analysis
nafise taghizade
1
(Department of Accounting , Kish International Branch, Islamic Azad University, Kish Island, Iran.)
mohsen hamidian
2
(Asistant Professor of Accounting, Islamic Azad University Tehran South, Iran)
Nowrouz Nourollahzadeh
3
(Assistant Professor of Accounting, Islamic Azad University Tehran South, Iran)
Keywords: Divergence of opinion, Investor's attention and parti, Initial Public Offering,
Abstract :
The main purpose of this study is to investigate moderating effect of investor's attention and investor's participation on the relationship between initial returns and divergence of investor's opinion in companies with initial public offering. The total of 124 IPO companies during 2006 to 2018 at Tehran Stock Exchange was analyzed. This is an applied research in terms of purpose and descriptive-post-event research regarding data collecting method. The research hypotheses are examined using Eviews8 software. The findings indicate investors' attention has a negative and significant effect on the relationship between initial returns and divergence of IPO investor’s opinions. Moreover, the micro investor's participation has a positive and significant effect on the relationship between initial returns and the divergence of IPO investor's opinions. The finding is consistent with the view that the level of individual investors’ participation has an implication on behavioral bias, which affects divergence of investor's opinion in the after-market.
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