*Assistant Prof., Financial Management Department University of Sistan & Baluchestan, Iran
**Master of Financial Management, University of Sistan and Balochestan, Iran
***Master student of Business Administration, University of Azad Qheshm, Iran
1Corresponding Author
Online published on 5 July, 2014.
This study examines the impact of credit rating on the stock price at the initial public offering deals. In this study we used net profit margin, return on investment, the company's stock market value, earnings per share ratio, book value of assets, debt ratio, debt to equity ratio and cost of goods sold in order to credit rating of companies. DEA has been used as a method for credit rating. Research models are estimated using cross-sectional data and panel regression. Results of observation indicate that credit rating also has a significant influence on the volatility of stock prices in the secondary market. Credit rating levels suggest useful information about uncertainty of firm's value and asymmetry of information in initial public offering markets and so that we can reduce underestimation of initial public offerings.
Initial public offerings, credit rating, information asymmetry, value uncertainty, unbalanced panel
