Finance and Banking

Short-term and long-term views of institutional shareholders and the relationship between overvaluation and seasoned stock offering

Authors

Habib Ansari Samani 1
Sajjad Barandak 2
Maryam Aminian 3

1 Associate Professor, Department of Economics, Faculty of Economics, Management, and Accounting, Yazd University, Yazd, Iran.

2 MSc. Financial Management, Department of Accounting, Moghadas Ardabili Institute of Higher Education, Ardabil, Iran

3 MSc. Financial Management, Department of Accounting & Finance, Faculty of Economics, Management and Accounting, Yazd University, Yazd, Iran.

https://doi.org/10.22054/fiba.2023.75442.1005
Abstract
After the IPO, stock returns and long-term operating performance both change directly with changes in institutional shareholders up to three years later, which is consistent with the monitoring role of institutional shareholders. Firms with short-term institutional shareholders have more negative returns in the IPO. They experience secondary. Therefore, the purpose of this research is to examine the role of short-term and long-term views of shareholders on the relationship between overvaluation and secondary supply of shares in companies listed on the Tehran Stock Exchange during the years 2016 to 2021. The sample consists of 114 companies and linear regression and analysis were used in Stata and Eviuse software. According to the results, the hypothesis of the influence of short-term and long-term institutional shareholders on the relationship between overvaluation and secondary supply was observed that short-term institutional shareholders have a significant relationship compared to long-term institutional shareholders, which indicates that between shareholders There is a difference between long-term view and short-term view shareholders, and short-term institutional shareholders try to sell overvalued shares in the secondary offering. And the research hypothesis that overvaluation with the moderating role of institutional shareholders has a significant effect on the secondary supply of listed companies in the Tehran Stock Exchange was confirmed.

Keywords

Secondary offering of shares
overvaluation
institutional ownership
timing of secondary offering
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