The pricing of initial public offering and market efficiency

Author

Chiyachantana N. CHIRAPHOL, Singapore Management UniversityFollow

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.

External URL

https://refpress.org/ref-vol19-a12/

Additional URL

https://doi.org/10.35341/1923-7529.2021.19.12