The long-run performance of initial public offerings in Thailand

Publisher Website
Google Scholar
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.