Determinants of IPO Investment Decisions: Influence of Stock Market Experience on Investment Purposes and Expected Returns.

Abstract

Purpose:

This research aims to ascertain and examine the elements that impact investors' choices to invest in Initial Public Offerings (IPOs). The objective is to assess the way the motivation for investing in IPOs differs depending on investors' level of expertise in the stock market. likewise, the research aims to establish the correlation between the anticipated gains from initial public offering (IPO) investments and the investors' degree of expertise. With a review of these aspects, the study will provide valuable knowledge on the conduct and anticipations of various investor categories. This will enhance knowledge of the dynamics of IPO investments and give guidance to both individual investors and regulators.

Design / Methodologies:

This study employs an exploratory mixed-methods approach, integrating quantitative and qualitative research methodologies to thoroughly investigate the factors that influence decisions to invest in Initial Public Offerings (IPOs), the differences in investment objectives based on investors' level of experience and the relationship between anticipated returns and investor experience. The study relied on primary data obtained from 84 respondents who were stock market investors in the Bangalore city. The Researchers analysed the data using statistical methods such as frequency table, crosstab analysis, Descriptive statistic, chi-square test, factor analysis and Kruskal-Wallis H test.