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THE FACTORS AFFECTING IPO RETURN IN THAI STOCK MARKET

Abstract

An an alternative for to short-term investment, IPO return is one of the most attractive investments in every stock market. In the past Stock Exchange of Thailand, the rate of stock listing or IPO issue was less when compared to the other Asian markets. After the crisis period in 1997, the number of IPO issues reduced to almost zero for a few years. Then, SET has implemented the new regulation and procedure to control all listed companied and also pursued them to follow corporate governance. in 2004, the rate of stock listing increased to almost one a week and there were number of positive returns of IPO s. This study reported 14% to 24% IPO Returns in Thai stock market during the study period. This figure is the same as the international stock markets. In addition, the factors affecting the initial return of IPOs were also disclosed.

Keywords: IPO, SET

 

For full Paper: fmscresearch@sjp.ac.lk


Author Biography

V. Chiraphadhanakul

School of Computer and Engineering Management, Assumption University, Thailand

K.D. Gunawardana

Professor, Department of Accounting, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura, Sri Lanka