The Pricing of Initial Public Offering and Market Efficiency

(Pages 116-123)

Chiraphol N. Chiyachantana*
Lee Kong Chian School of Business, Singapore Management University.
DOI: https://doi.org/10.35341/1923-7529.2021.19.12

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.


How to Cite:

Chiraphol N. Chiyachantana. The Pricing of Initial Public Offering and Market Efficiency. [ref]: vol.19.2021. available at: https://refpress.org/ref-vol19-a12/


Licensee REF Press
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