The Effect of Gross Domestic Product, Tehran Exchange Price Index and Political Relations on Stock Pricing in Initial Public Offerings (IPOs)

Abstract

The aim of the present study is to explore the effect of gross domestic product, Tehran Exchange Price Index and political relations on stock pricing in initial public offerings. For this purpose, a number of 105 company from the companies listed on Tehran Stock Exchange during the time span of 2008 - 2013 have been studied. Results obtained from research regression models fit with the use of panel data method indicate that gross domestic product does not have any significant effect on stock pricing in initial public offerings, while, Tehran Exchange Price Index  and the level of political relations have a direct and significant relationship with stock pricing in these offerings.