Inital public offering and price performance of stocks: An emprirical analysis of stocks by years and sectors in ISE

In this empirical study initial public offering, stock performance and underpricing concepts discussed and the price performance of stocks that performed initial public offering in the Istanbul Stock Exchange between 2000 and 2010 years are examined. In the analysis, event study that widely used in the literature applied and the price performance of 101 firms were calculated in 21 days after the initial public offering by years and sectors. The results show that there are significant differences in cumulative abnormal returns by years and there are similar significant positive and negative cumulative abnormal returns in certain sectors. The highest significant return obtained in 2008 with 41,09% and the highest cumulative abnormal return found in the communication sector on the 13th day on sectoral basis. There are significant cumulative abnormal returns that provided an average of 3 days after the initial public offering in the 21 day period.Key Words: Initial public offering, Price performance