Capital Market Determinants of Going Public: The Evidence from CEE Capital Markets
Capital Market Determinants of Going Public: The Evidence from CEE Capital Markets

Author(s): Sylvia Plottová
Subject(s): National Economy, Economic history, Present Times (2010 - today), Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: capital markets; CEE region; market capitalization; initial public offerings;
Summary/Abstract: Capital markets within CEE region have shown that in case of new investment opportunities they are still significantly underdeveloped. This research is focused to examine the influence of the local capital market indicators on IPO emergence. The data sets for the capital markets of Czech Republic, Poland, Hungary and Slovenia has been analyzed over the period between 2010 and 2016. The following capital market indicators and their impact on the IPO volumes were examined: market capitalization as percentage of GDP, turnover as percentage of GDP, turnover velocity and number of listed companies. To analyze the data the quantitative approach was applied as well as in depth comparison of capital market specifics. The regression estimation model is applied to identify the impact of the capital market determinants on the number of primary issues and the value of capital raised by IPOs. The data is evaluated at the significance level of α=5%. Results show that in Poland and Hungary the capital market determinants show certain degree of influence on IPO activity.

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