Corporate Hedging and IPO Underpricing in Türkiye

被引:0
作者
Ayturk, Yusuf [1 ]
Akbaba, Caner [2 ]
机构
[1] Istanbul Univ, Fac Polit Sci, Dept Business Adm, Istanbul, Turkiye
[2] Mugla Sitki Kocman Univ, Fac Econ & Adm Sci, Dept Business Adm, Mugla, Turkiye
来源
SIYASAL-JOURNAL OF POLITICAL SCIENCES | 2024年 / 33卷 / 02期
关键词
Financial derivatives; Valuation; Initial public offerings; Underpricing; T & uuml; rkiye; FOREIGN-CURRENCY DERIVATIVES; INITIAL PUBLIC OFFERINGS; FIRM VALUE EVIDENCE; RISK-MANAGEMENT; MARKET; PERFORMANCE; INFORMATION; COSTS; PRICE;
D O I
10.26650/siyasal.2024.33.1514089
中图分类号
D0 [政治学、政治理论];
学科分类号
0302 ; 030201 ;
摘要
The initial public offerings (IPO) phenomenon remains one of the most nebulous and sophisticated issues in the financial industry. Numerous studies in different countries provide significant evidence by addressing various aspects of underpricing of IPOs. Information asymmetry between investors and issuers is a prominent reason for the extent of underpricing. Issuers tend to disclose more information to reach a fair equilibrium price in the market. Hedging instruments are the most widely used financial risk management tools that can decrease information asymmetry. The relationship between corporate derivatives use and information asymmetry has been investigated through value relevance channels in secondary markets. However, researchers have recently started to analyse the impact of hedging using various markets, such as debt markets, mergers and acquisitions, and IPOs. Moreover, increasing interest in real assets and initial public offerings due to a high inflationary environment can provide further evidence for IPO underpricing, especially in emerging markets. For this purpose, this study investigates the impact of financial risk management using financial derivatives on short-term IPO performance (i.e., IPO underpricing) in the Turkish IPO market. Employing a sample of 287 Turkish IPOs between 2008 and 2023, we find that financial derivatives use negatively affects the level of IPO underpricing.
引用
收藏
页数:22
相关论文
共 59 条
[1]  
Açikgöz S, 2017, EGE ACAD REV, V17, P33, DOI 10.21121/eab.2017123467
[2]  
Akpinar O., 2016, Journal of Transnational Management, V21, P53
[3]   Exchange rate exposure, hedging, and the use of foreign currency derivatives [J].
Allayannis, G ;
Ofek, E .
JOURNAL OF INTERNATIONAL MONEY AND FINANCE, 2001, 20 (02) :273-296
[4]   The use of foreign currency derivatives and firm market value [J].
Allayannis, G ;
Weston, JP .
REVIEW OF FINANCIAL STUDIES, 2001, 14 (01) :243-276
[5]   The use of foreign currency derivatives, corporate governance, and firm value around the world [J].
Allayannis, George ;
Lel, Ugur ;
Miller, Darius P. .
JOURNAL OF INTERNATIONAL ECONOMICS, 2012, 87 (01) :65-79
[6]   SIGNALING BY UNDERPRICING IN THE IPO MARKET [J].
ALLEN, F ;
FAULHABER, GR .
JOURNAL OF FINANCIAL ECONOMICS, 1989, 23 (02) :303-323
[7]   Corporate derivatives use and firm value: Evidence from Turkey [J].
Ayturk, Yusuf ;
Gurbuz, Ali Osman ;
Yanik, Serhat .
BORSA ISTANBUL REVIEW, 2016, 16 (02) :108-120
[8]   The Effects of Derivatives on Firm Risk and Value [J].
Bartram, Soehnke M. ;
Brown, Gregory W. ;
Conrad, Jennifer .
JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2011, 46 (04) :967-999
[9]   INVESTMENT BANKING, REPUTATION, AND THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS [J].
BEATTY, RP ;
RITTER, JR .
JOURNAL OF FINANCIAL ECONOMICS, 1986, 15 (1-2) :213-232
[10]   Do investors really value derivatives use? Empirical evidence from France [J].
Ben Khediri, Karim .
JOURNAL OF RISK FINANCE, 2010, 11 (01) :62-74