Underpricing and performance of IPOs in Saudi Arabia (Thesis Proposal Sample)
This is a research proposal and it should be quantitative style NOT qualitative. The proposal area is in IPO in Saudi market, the writer needs to find a gap in this area, the specific question will leave it to the writer. The following section should be in the proposal.
Title of project
This should be a clear description of your proposed research project.
Background and context of project
This section should explain the background and context of the proposed research work with an indication of the main contribution to knowledge which you wish to make. Indicate why this area is an important area for research.
Aims and objectives
You should spell out three or four aims/objectives for your research to show what you want to achieve.
This section is a review of the literature which should outline the most important research that has already been carried out in your research area.
This section is a broad outline of the methodology you plan to use including:
•the broad approach — qualitative, quantitative etc.
•how data/information will be generated and gathered and how you expect to deal with and analyse that data.
•Indication of any broad theoretical framework you may be using.
Finance/ Research: Underpricing and performance of IPOs in Saudi Arabia
Background and context of project
There is a growing interest on investments in Saudi Arabia, since foreign investors are better placed to invest in the country more than even before. In 2014, the Capital Market Authority came up with plans to allow investors to have up to 10% of the stock exchange value (Martin & Nair, 2014). At the moment, foreigners mostly rely on swaps to trade indirectly shares in the Saudi stock exchange, but Saudi citizens invest directly. As private firms seek to raise capital through the stock market, there is a need to understand how the shares perform in the long-term, and if under pricing characterizes most of the stocks. Even though, under pricing and underperformance have previously being discussed, research has mostly focused on western countries with long history of stock market participation.Aims and objectives
To determine the extent to which there was under pricing and underperformance after issuing an IPO.
To determine whether companies issuing an IPO in the Saudi market influence the offer price.
Assess the performance of Saudi companies which went public after one year and 5 years.
Determine whether the owners and structure of firms issuing the IPO affect their performance over time.
Research o the performance of IPOs typically report that under pricing occurs in most counters across the world, but some then use theories to explain performance and under pricing of IPOs. Alhassan, Delgado and Omran (2007, p. 19), delved into the performance of IPOS in the GCC countries, reporting that consistent with previous research, there are abnormal returns related to the IPOs among the six GCC countries, for 47 firms. The performance of IPO is typically assessed using the returns on assets (ROA) ratio, where it is possible to assess performance post IPO. Alanazi & Liu (2013, pp. 15-16) reported the decline in profitability for IPOs in GCC countries, and this could be a result of the rise in agency costs.
According to Alqahtani & Mayes (2014, p. 10), in most cases IPOs tend to be oversubscribed, and issuing companies may offer new equities at a discount given that there is information asymmetry for new investors. Nonetheless, there are other fa...
- Underpricing and performance of IPOs in Saudi ArabiaDescription: There is a growing interest on investments in Saudi Arabia, since foreign investors are better placed to invest in the country more than even before...2 pages/≈550 words| 6 Sources | Harvard | Mathematics & Economics | Thesis Proposal |