The Performance of Newly Issued Stocks in Thailand | Zendy

Vesarach Aumeboonsuke | Zendy; Nopphon Tangjitprom | Zendy

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The Performance of Newly Issued Stocks in Thailand

Author(s) -

Vesarach Aumeboonsuke,

Nopphon Tangjitprom

Publication year - 2011

Publication title -

international journal of economics and finance

Language(s) - English

Resource type - Journals

eISSN - 1916-9728

pISSN - 1916-971X

DOI - 10.5539/ijef.v4n1p103

Subject(s) - portfolio , stock exchange , stock (firearms) , initial public offering , economics , business , financial economics , econometrics , monetary economics , finance , geography , archaeology

This paper aims to examine the relative long-run performance of the newly issued stocks in the Stock Exchange of Thailand (SET). The sample of 325 newly issued stocks in Stock Exchange of Thailand during the year 1990 – 2006 is filtered to 314 stocks by excluding the issues during the mid-1997 to 1998 Asian Financial Crisis period. 3-year and 5-year holding period returns of IPO portfolio are compared with those of the matching firms. In addition to the event study, the time series cross-sectional regressions are employed to investigate the long-run overpriced of newly issued stocks when controlling for size and Book-to-Market Value ratio. The overall results show that, relative to that of the size-matched portfolio, the long-run performance of portfolio consist of was underperformed by approximately 15% and 29% for the three-year holding period portfolio and five-year holding period portfolio, respectively.

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