2009-12: The Pricing and Performance of IPOs for Small-and-medium-sized Enterprises: Emerging Market Evidence (Working paper)

Loading...
Thumbnail Image
File version
Author(s)
Worthington, Andrew C.
Chorruk, Jirapun
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)

Akimov, Alexandr

Date
2009
Size

20 pages

File type(s)
Location
License
Abstract

This paper examines the pricing and performance of initial public offerings (IPOs) for small-and-medium-sized enterprises on the Thai Market for Alternative Investments (mai) from September 2001 to October 2008. Underpricing is calculated using headline underpricing, underpricing issuer loss, underpricing loss by market value, and underpricing loss by issuer price. Aftermarket performance employs monthly cumulative abnormal returns, buy-and-hold returns and wealth relatives. The underpricing results show an average underpricing of 12.69%, 5.01%, 4.74% and 11.40% for the 4 measures used, respectively. This is significantly lower than the underpricing found for the large-firm IPOs listing on the Stock Exchange of Thailand (SET). However, there is much variability in pricing over the sample period, with substantial underpricing in 2003/2004 and correctly priced issues on average in 2001/2002 and 2005/2006/2007. While the performance analysis is suggestive that SMEs perform well after listing, returns adjusted for market performance indicates that this generally only holds for the second year after listing.

Journal Title
Conference Title
Book Title
Edition
Volume
Issue
Thesis Type
Degree Program
School
Publisher link
DOI
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement

Copyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).

Item Access Status
Note

Finance

Access the data
Related item(s)
Subject

G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure

C23 - Single Equation Models; Single Variables: Models with Panel Data; Longitudinal Data; Spatial Time Series

C12 - Hypothesis Testing: General

G24 - Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies

Small-and-medium-sized enterprises

Initial public offerings

underpricing

Abnormal returns

Persistent link to this record
Citation
Collections