Relationship between initial public offering and macroeconomic factors in the U.S.

Foo, Evon Yuet Wen and Tang, Hui Yi and Wong, Wee Kang (2022) Relationship between initial public offering and macroeconomic factors in the U.S. Final Year Project, UTAR.

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Abstract

This study is being conducted for the purpose of measuring the relationships between macroeconomic variables and the number of IPO in the United States from period year 2001 Quarter 1 until year 2020 Quarter 4, which total up to 80 observations. The macroeconomic variables those used in this study were inflation, GDP growth rate and lending interest rate. The quarterly data of each variable was adopted from the secondary sources such as IPOScoop & PWC data base, Bloomberg data base and the Federal Reserve Economic Data. This study able to implicate the policymakers, education field, retail investors and the company those want to issue IPO as they will know how the macroeconomic variables can affect the number of IPO. In order to study the relationships between the independent variables and the number of IPO in the U.S., we have carried out some statistical tests by using the E-Views 12. The result showed inflation and lending interest rate are in a positive relationship with the number of IPO in the U.S. while GDP growth rate is in a negative relationship with number of IPO in the U.S. These results showed are different with result observed in the past studies reviewed. This is in light of the fact that there are other elements and factors such as the country size of all the researches are different and so on contributed to this issue. Since there are some limitations in our study, therefore some recommendations are provided for the future researchers in order to make the improvement in the research which topic related.

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