Initial public offering (IPO) trends and factors that affect IPO decisions

Abstract

Volatility in the number of initial public offerings (IPOs) has always existed. This article proposes two factors that affect the number of IPO fluctuations: the company's operating conditions and investor sentiment. These two have a direct impact on the volatility of the number of IPO, and regression analysis will be used to examine all of the above factors and their impact on the volume of IPOs. This article investigates IPO activity with the background of companies listed after 2000. The trends of the number of IPOs and initial returns from 2000 to 2010 are listed, and this article finds that FCF and investor sentiment are important factors determining the number of IPOs.