Ownership Concentration and Initial Public Offering Performance: Evidence from Thailand
ثبت نشده
چکیده
This study examines the relation between ownership concentration and performance of initial public offerings (IPOs) in Thailand during 1989-1993. Ownership concentration plays a crucial role in emerging capital markets such as Thailand and can significantly affect IPO performance. Several testable hypotheses are constructed from the IPO literature to examine short-term and long-term IPO performance and their relation with ownership concentration. The empirical evidence reveals a positive relation between ownership concentration and IPO initial returns. This finding indicates that large, “informed” investors have the ability to identify underpriced IPOs, leaving “uninformed” investors with less underpriced issues. The findings are significant because the degree of information asymmetry is typically very high in emerging markets. However, evidence on the relation between initial ownership concentration and IPO long-run performance is not conclusive.
منابع مشابه
Underpricing, Ownership and Liquidity of Initial Public Offers (IPO) and Their Impact on Performance of IPO Stocks in Equity Markets of India
Paper studies the impact of the liquidity, underpricing and ownership up on both the short term and long term performance of the Initial Public Offer (IPO) stocks in the equity markets of India. Empirical analysis is undertaken to study the impact of liquidity, underpricing and ownership on Performance of IPO stocks. Multiple regression analysis is undertaken for analyzing the impact. It is fou...
متن کاملThe Impact of Audit Quality on Earnings Management: An Experimental Study with Evidence from IPO
According to a method of earnings management activities that administrators can manage reported earnings from the definition of real activity. In particular they can be located across time and activities in a way that accounting period to achieve a certain revenue target. Conservative attitudes of auditors in presenting their views about the independence of the auditor can considered as a remar...
متن کاملDefining the Benefit Package of Thailand Universal Coverage Scheme: From Pragmatism to Sophistication
Benefit package is crucial for implementing universal health coverage (UHC). This editorial analyses how the benefit package of the Thai Universal Coverage Scheme (UC Scheme) evolved from an implicit comprehensive package which covered all conditions and interventions (with a few exceptions), to additional explicit positive lists. In 2002 when the Thai UC Scheme was lau...
متن کاملUnderwriter Reputation, Issuer Ownership, and PreIPO Earnings Management: Evidence from China
This paper investigates the correlation between pre-initial public offering (pre-IPO) earnings management and underwriter reputation for issuers with different ownership structures in China. We document a significantly inverse relationship between underwriter reputation and pre-IPO earnings management for non-state-owned enterprises (NSOE) issuers only, while no significant association is found...
متن کاملLong run underperformance of initial public offerings: an explanation;
Initial public offerings, even though risky, typically underperform the indices for the first few years after offering. This can be explained by high divergence of opinion raising the initial market price, and by this divergence of opinion declining over time. With time, the valuation of the price setting marginal investor comes closer to the average investor’s valuation. This theory also expla...
متن کامل