TITLE:
From Hype to Bust: Investigating the Underlying Factors of the Dot-Com Bubble and Developing Regression Models for Future Market Predictions
AUTHORS:
Cesar Delossantos
KEYWORDS:
Discounted Shares Programs (DSP), Insider Trading, Market Sentiment, Underwriters, Initial Public Offerings (IPO), Hot Market-IPO
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.5,
September
12,
2023
ABSTRACT: The dot-com bubble, spanning from the late 1990s to
the early 2000s, marked a time of unprecedented growth and speculation within
the technology sector. This era culminated in a market crash with far-reaching
repercussions for both Wall Street and investors alike. Our paper delves into
the fundamental causes and effects of this phenomenon, posing the following
research question: What were the primary factors driving the dot-com bubble,
and how did these elements influence the economy in the aftermath of the
subsequent crash? To address this inquiry, we employ comprehensive regression
analyses and academic investigations to pinpoint the root causes of the dot-com
bubble, while also assessing its impact on the economy. We further construct a
logistic regression model to forecast potential market bubbles in the future.
By analyzing data from multiple sources, we paint a detailed picture of the
circumstances that precipitated the dot-com crash, offering valuable insights
into how similar market bubbles can be anticipated and averted in the future.
Our research serves as a critical contribution to the existing body of
knowledge surrounding the dot-com bubble, shedding light on the various factors
that played a role in its development and eventual collapse. Through our
findings, we hope to facilitate a deeper understanding of the dynamics at play
during this turbulent period in economic history, ultimately aiding in the
development of strategies to safeguard against future market instabilities.