The Performance of Newly Issued Stocks in Thailand
Aumeboonsuke, V. and Tangjitprom, N. (2012). “The Performance of Newly Issued Stocks in Thailand”, International Journal of Economics and Finance, 4(1), 103-109.
Posted: 4 Oct 2011 Last revised: 24 Jan 2014
Date Written: October 4, 2011
Abstract
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 IPOs 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.
Keywords: IPOs, new issues, Stock Exchange of Thailand
JEL Classification: G11
Suggested Citation: Suggested Citation