Factors Affecting the Difference Between Stock and Right Price

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Zendehdel, Mohammad Sajad | 2023

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 58183 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Ebrahimnejad, Ali
Abstract:
This study investigates the determinants of the price difference between stock prices and their corresponding right offers on the Tehran Stock Exchange (1389- 1401). Employing panel regression analysis, we identify critical factors that influence this price differential. Notably, stock illiquidity emerges as a signif- icant driver of overpricing in right offers. Our findings have implications for policymakers seeking to enhance market eﬀiciency, wealth management firms designing trading strategies, and firms considering secondary equity offerings. This research offers insights into Iranian financial markets, highlighting the im- portance of liquidity variables and their role in pricing dynamics, ultimately guiding informed decision-making
Keywords:
Underpricing ; Liquidity ; Seasoned Equity Offering (SEO) ; Stock Price ; Tehran Stock Exchange