Publication Type
Journal Article
Version
publishedVersion
Publication Date
6-2021
Abstract
This study investigates long-run performance of Thai initial public offerings (IPOs). To examine the longrun performance of Thai IPOs, we compute buy-and-hold abnormal returns and cumulative abnormal returns for two years after the IPOs. We find strong evidence of long run underpricing in Thai market. Specifically, the average buy-and-hold abnormal returns and cumulative abnormal returns are 64.5% and 18.4% respectively. However, our multi-variate analysis does not indicate a strong relation between long-run underperformance and firm-specific factors, such as firm size, firm age, investment banker reputation and firm profitability.
Keywords
Initial Public Offerings, Long-run Underperformance, Market Efficiency, Stock Exchange of Thailand
Discipline
Asian Studies | Finance and Financial Management | Portfolio and Security Analysis
Research Areas
Finance
Publication
Review of Economics and Finance
Volume
19
First Page
116
Last Page
123
ISSN
1923-7529
Identifier
10.35341/1923-7529.2021.19.12
Publisher
RefPress
Citation
CHIRAPHOL, Chiyachantana N..
The pricing of initial public offering and market efficiency. (2021). Review of Economics and Finance. 19, 116-123.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6783
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.35341/1923-7529.2021.19.12
Included in
Asian Studies Commons, Finance and Financial Management Commons, Portfolio and Security Analysis Commons