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

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

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

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název periodika

Transformations in Business&Economics

ISSN

1648-4460

e-ISSN

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Svazek periodika

17

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

LT - Litevská republika

Počet stran výsledku

22

Strana od-do

148-169

Kód UT WoS článku

000434104800010

EID výsledku v databázi Scopus

2-s2.0-85048627700