Open AccessModeling IPO In Dubai Stock Market: Booming Or Tumbling Return?
Author(s) -
Rim El Khoury
Publication year - 2011
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v6i5.3370
Subject(s) - initial public offering , stock market , business , irrational number , financial economics , stock (firearms) , abnormal return , financial system , monetary economics , economics , stock exchange , finance , engineering , mathematics , geography , mechanical engineering , context (archaeology) , geometry , archaeology
This paper examines the impact of IPO on Dubai Stock Market. We measured through detailed distribution analysis and hypothesis testing the Dubai markets reaction to IPO. We demonstrated that IPO had downbeat impact on Dubai market performance in terms of return as revealed by the rejection of the alternative hypothesis. The independency between market return and IPO was partially attributed to irrational valuations at the time of IPO.