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The long-run performance of initial public offerings in Thailand

Author

Listed:
  • D. E. Allen
  • N. J. Morkel-Kingsbury
  • W. Piboonthanakiat

Abstract

This paper analyses the long-run performance of initial public offerings (IPOs) on the Thai Stock Exchange. It uses a sample of 150 IPOs listed on the Thai Stock Exchange Main Board between 1985 and 1992. The initial return is 63.49%. The cumulative adjusted return at the end of the three-year anniversary is 10.02%. This result contrasts with those of most of the studies of long-run IPO performance in developed markets. This result, however, appears sensitive to outlying observations. Whilst there is no significant evidence that the IPOs underperform the market in the long run, removal of outliers from cross-sectional analysis suggest that Thai IPOs may underperform the market in the long run. Further research, including more recent data may help clarify this issue.

Suggested Citation

  • D. E. Allen & N. J. Morkel-Kingsbury & W. Piboonthanakiat, 1999. "The long-run performance of initial public offerings in Thailand," Applied Financial Economics, Taylor & Francis Journals, vol. 9(3), pages 215-232.
    • Handle: RePEc:taf:apfiec:v:9:y:1999:i:3:p:215-232
    DOI: 10.1080/096031099332294
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    Citations

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    Cited by:

    1. Chorruk, Jirapun & Worthington, Andrew C., 2010. "New evidence on the pricing and performance of initial public offerings in Thailand, 1997-2008," Emerging Markets Review, Elsevier, vol. 11(3), pages 285-299, September.
    2. Subadar Agathee, Ushad & Brooks, Chris & Sannassee, Raja Vinesh, 2012. "Hot and cold IPO markets: The case of the Stock Exchange of Mauritius," Journal of Multinational Financial Management, Elsevier, vol. 22(4), pages 168-192.
    3. Giannopoulos, George & Degiannakis, Stavros & Holt, Andrew & Pongpoonsuksri, Teerapon, 2018. "The Impact of the 2007 Global Financial Crisis on IPO Performance in Asian-Pacific Emerging Markets," MPRA Paper 96269, University Library of Munich, Germany.
    4. Vithessonthi, Chaiporn, 2014. "What explains the initial return of initial public offerings after the 1997 Asian financial crisis? Evidence from Thailand," Journal of Multinational Financial Management, Elsevier, vol. 27(C), pages 89-113.
    5. Cristiana Cardi & Camilla Mazzoli & Sabrina Severini, 2019. "People have the power: post IPO effects of intellectual capital disclosure," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 43(2), pages 228-255, April.
    6. Seung‐Doo Choi & Inmoo Lee & William Megginson, 2010. "Do Privatization IPOs Outperform in the Long Run?," Financial Management, Financial Management Association International, vol. 39(1), pages 153-185, March.
    7. Carey, Peter & Steen, Adam, 2006. "Changing conditions in the Hong Kong new issues market," Pacific-Basin Finance Journal, Elsevier, vol. 14(5), pages 484-500, November.
    8. Andrew C. Worthington & Jirapun Chorruk, 2009. "The Pricing and Performance of IPOs for Small-and-medium-sized Enterprises: Emerging Market Evidence," Discussion Papers in Finance finance:200912, Griffith University, Department of Accounting, Finance and Economics.
    9. Liu, Jianlei & Uchida, Konari & Gao, Ruidong, 2012. "Political connections and the long-term stock performance of Chinese IPOs," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(4), pages 814-833.
    10. Jirapun Chorruk & Andrew Worthington, 2013. "The pricing and performance of IPOs for small- and medium-sized enterprises: evidence from Thailand," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(4), pages 543-559.
    11. Shikha Bhatia & Balwinder Singh, 2012. "Examining the Performance of IPOs," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 37(3), pages 219-251, August.

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