Vol. 10 No. 1 (2022): Business & Management Studies: An International Journal

Underpricing anomaly in initial public offerings: A research on 2021 initial public offerings performed in Borsa Istanbul

Mustafa Özyeşil
Assist. Prof., İstanbul Aydın University, İstanbul, Turkey

Published 2022-03-26


  • İlk Halka Arz, Düşük Fiyatlama, Fiyat Anomalisi, Borsa İstanbul, t-testi
  • IPO, Underpricing, Price Anomaly, Borsa Istanbul, t-test

How to Cite

Özyeşil, M. (2022). Underpricing anomaly in initial public offerings: A research on 2021 initial public offerings performed in Borsa Istanbul. Business & Management Studies: An International Journal, 10(1), 149–162. https://doi.org/10.15295/bmij.v10i1.1981


One of the most common anomalies related to price performance in initial public offerings (IPOs) is short-term underpricing and long-term underperformance anomalies. There are many studies on these anomalies conducted in the previous literature. This article's primary purpose is to contribute to this existing academic research by examining the underpricing for the IPOs made in Borsa Istanbul during 2021. For this purpose, 32 initial public offerings performed in Borsa Istanbul in 2021 as of the analysis date are examined. In the analysis, the first day, the first three days and the first seven days after the issuance are described as the short-term. Based on empirical findings, no short-period underpricing is detected for all public offerings performed in Borsa Istanbul in 2021. In other words, it can be concluded that investors can't earn residual (abnormal) returns by purchasing stocks from these public offerings in a short period.


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