Publication detail

The Impact of Rumours Related to Political and Macroeconomic Uncertainty on IPO Success: Evidence from a Qualitative Model

MELUZÍN, T. ZINECKER, M. BALCERZAK, A. DOUBRAVSKÝ, K. PIETRZAK, M.

Original Title

The Impact of Rumours Related to Political and Macroeconomic Uncertainty on IPO Success: Evidence from a Qualitative Model

Type

journal article in Web of Science

Language

English

Original Abstract

This article is dedicated to the propagation of rumours in regard to political and macroeconomic uncertainty related to a going public strategy. Rumours might have an enormous impact on the decision making of market participants due to information asymmetry and thus can explain the timevarying character in volumes of initial public offerings. We model the relation between political uncertainty and firms’ financing decisions while applying the SIRaRu rumour propagation model investigating the dynamics of the rumour spreading in complex social networks. We document how the IPO activity is adversely affected if confounding announcements in regard to political uncertainty are spread. Some realistic conditions on previous rumour spreading models are supplemented and a new qualitative on trends-based model is derived. Moreover, a transitional graph is developed to study all possible past/future behaviour of the examined variables. Additionally, we propose a graphical solution to reconstruct the development of the variables under study over time.

Keywords

macroeconomics, politics, rumours, IPO, qualitative models

Authors

MELUZÍN, T.; ZINECKER, M.; BALCERZAK, A.; DOUBRAVSKÝ, K.; PIETRZAK, M.

Released

31. 5. 2018

Publisher

Vilnius University

Location

Vilnius, Lithuania

ISBN

1648-4460

Periodical

Transformations in Business&Economics

Year of study

17

Number

2

State

Republic of Lithuania

Pages from

148

Pages to

169

Pages count

22

URL

http://www.transformations.knf.vu.lt/44/article/theim

BibTex

@article{BUT149050,
  author="Tomáš {Meluzín} and Marek {Zinecker} and Adam Przemyslaw {Balcerzak} and Karel {Doubravský} and Michał Bernard {Pietrzak}",
  title="The Impact of Rumours Related to Political and Macroeconomic Uncertainty on IPO Success: Evidence from a Qualitative Model",
  journal="Transformations in Business&Economics",
  year="2018",
  volume="17",
  number="2",
  pages="148--169",
  issn="1648-4460",
  url="http://www.transformations.knf.vu.lt/44/article/theim"
}