IPO Valuation and IPO Inter-Industry Effects

This study examines the valuation effects of initial public offerings (IPOs) and intra-industry IPOs in Turkey between 2010 2018. The purpose this is to find out whether are overvalued they impact pricing industry peers. First, investigated. Price-to-value ratios Turkish compared with sector average determine overvalued. not against rivals’ price-to-value based on sales earnings-before-interest-taxes-depreciation-and-amortization (EBITDA) earnings. Similarly, related IPOs. Second, Sector-adjusted abnormal returns market-adjusted returns. results affirmative: There no statistically significant difference two do trigger price declines rival companies’ stocks. Altogether, findings indicate that there neither overvaluation nor over companies. Companies time market industrial overvaluation. may efficiency or lack competition IPO market.