The Impact of Rumours Related to Political and Macroeconomic Uncertainty on IPO Success: Evidence from a Qualitative Model

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F18%3APU128569" target="_blank" >RIV/00216305:26510/18:PU128569 - isvavai.cz</a>

Result on the web

<a href="http://www.transformations.knf.vu.lt/44/article/theim" target="_blank" >http://www.transformations.knf.vu.lt/44/article/theim</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Impact of Rumours Related to Political and Macroeconomic Uncertainty on IPO Success: Evidence from a Qualitative Model

Original language description

This article is dedicated to the propagation of rumours in regard to political and macroeconomic uncertainty related to a going public strategy. Rumours might have an enormous impact on the decision making of market participants due to information asymmetry and thus can explain the timevarying character in volumes of initial public offerings. We model the relation between political uncertainty and firms’ financing decisions while applying the SIRaRu rumour propagation model investigating the dynamics of the rumour spreading in complex social networks. We document how the IPO activity is adversely affected if confounding announcements in regard to political uncertainty are spread. Some realistic conditions on previous rumour spreading models are supplemented and a new qualitative on trends-based model is derived. Moreover, a transitional graph is developed to study all possible past/future behaviour of the examined variables. Additionally, we propose a graphical solution to reconstruct the development of the variables under study over time.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

S - Specificky vyzkum na vysokych skolach<br>I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Transformations in Business&Economics

ISSN

1648-4460

e-ISSN

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Volume of the periodical

17

Issue of the periodical within the volume

2

Country of publishing house

LT - LITHUANIA

Number of pages

22

Pages from-to

148-169

UT code for WoS article

000434104800010

EID of the result in the Scopus database

2-s2.0-85048627700