Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


An Exploration into the Determinants of Retail Investors Investment Behaviour about Initial Public Offers in Indian Scenario

Author(s): S.Saravanan, R. Satish

Purpose of this paper is to identify constructs involved in Retail Investors Investment Behaviour towards Initial Public Offers and suggest a model to understand the relationship between various construct considered. Data was collected through structured questionnaire from selected sample size and finally 504 responses were used to justify the structure. The study determined four variables Information Asymmetry, Representativeness and Familiarity (Heuristics), Market/Company Perception and Societal Perception. Also the study contributed in identifying a model that can show a meaningful relationships among the variables identified and Intention of an investor towards IPO investments. Though the four considered had a direct or indirect relationship with Intention, Heuristics considered had a major influence. Information Asymmetry had an indirect relationship with Intention by modifying the perception of investors either through the Representativeness and Familiarity or through the Market and Company Perception.

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