Capital Market Determinants of Going Public in Central and Eastern Europe

摘要

This study deals with recent primary stock market developments in Central and Eastern Europe (CEE) and aims to indicate the influence of capital market determinants, consequently capital market size- and capital market liquidity-indicators and capital market indices returns, on numbers of IPOs in Poland, Czech Republic, Hungary, Slovakia, Slovenia and Austria over the period of 2000 to 2012. Descriptive statistics are used to analyse capital market and IPO developments and the Spearman correlation analysis identifies the relations between the capital market quantitative determinants and the IPO numbers. The results of the simultaneous correlation analysis can be summarized as follows. First of all, the hypothesis that the relative capital market size- and liquidity-indicators (i.e. market capitalisation to GDP, market capitalization per capita, turnover per capita) have explanatory power for the number of IPOs could be supported by empirical evidence. On the other hand, we found no evidence that the capital market size- and liquidity-indicators in absolute terms (i.e. capitalisation growth rates, annual turnover, number of transactions and number of domestic listed companies) and capital market indices returns affected the IPO activities. These results suggest consistency with findings of previous IPO studies in the CEE capital markets, although in our investigation we used a longer time series and a wider range of explanatory variables.