The pricing and performance of IPOs for small- and medium-sized enterprises: evidence from Thailand
File version
Author(s)
Worthington, Andrew C
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)
Date
Size
389960 bytes
File type(s)
application/pdf
Location
License
Abstract
This paper examines the pricing and performance of initial public offerings (IPOs) for small- and medium-sized enterprises (SMEs) 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 respective average underpricing of 12.69%, 5.01%, 4.74% and 11.40% for the measures used. 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 2003/04 and correctly priced issues on average in 2001/02 and 2005/06/07. While the performance analysis is suggestive that SMEs perform well after listing, returns adjusted for market performance indicates that this generally only holds up until the second year after listing.
Journal Title
Journal of the Asia Pacific Economy
Conference Title
Book Title
Edition
Volume
18
Issue
4
Thesis Type
Degree Program
School
Publisher link
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement
© 2013 Taylor & Francis. This is an electronic version of an article published in Journal of the Asia Pacific Economy, Volume 18, Issue 4, 2013, Pages 543-559. Journal of the Asia Pacific Economy is available online at: http://www.tandfonline.com with the open URL of your article.
Item Access Status
Note
Access the data
Related item(s)
Subject
Applied economics
Banking, finance and investment
Finance
Policy and administration