A Study on Predicting IPO Underpricing in India: An Integrated Analysis of Financial Factors and Investor Sentiment (INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT)

Summary

• The study evaluated IPO underpricing factors using a structured 22-item questionnaire administered on a 5-point Likert scale across six constructs.p.1
• Out of 92 initial questionnaire response records, data screening removed duplicate submissions to leave an analysis sample of 19 unique respondents.p.6
• A combined regression model of financial factors and investor sentiment explained 75.1% of the variance in perceived underpricing with F(2,16) = 24.07.p.12
• The integrated predictive model combining four key determinants accounted for 89.2% of the total variance in perceived IPO underpricing.p.14

Key insights

1. Scale reliabilities across all six surveyed constructs demonstrated strong internal consistency, ranging from Cronbach's α of .80 to .92.p.1
2. All construct pairs exhibited high positive correlations ranging from r = .76 to r = .95 across the sample.p.9
3. Gender and occupation were perfectly associated in the sample with χ²(1) = 19.00 and Cramér's V = 1.00.p.10
4. Annual income groups showed significant variance in investor sentiment scores with F(2,16) = 5.58.p.11
5. None of the five tested market condition interaction terms demonstrated statistical moderation at the .05 level.p.14
6. Cross-validated predictive accuracy Q² for the integrated model reached .73, compared to .82 for market conditions alone.p.14