A test of adverse selection model evidence from Thai initial public offerings | |
| Author | Neupane, Suman |
| Call Number | AIT RSPR no.SM-04-60 |
| Subject(s) | Going public (Securities)--Thailand Stocks--Thailand Capital market--Thailand |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-04-60 |
| Abstract | There have been a number of studies on the initial performance of IPOs both in the developed and the emerging market. Most of the studies have verified the existence of underpricing of IPOs. One of the reasons attributed to underpricing is the information asymmetry between the issuers, underwriters and the investors. These studies have utilized as number of proxies relating to the information asymmetty to identify whether the theory holds true or not. The present study deals with the underpricing of all the Thai IPOs for the period of 2000-2004. This basically covers the post crises period till date. The study reveals the presence of underpricing, though not to as level as that of pre-crisis period. Next the study tested if the information asymmetry model could explain the underpricing behavior of the Thai IPOs. After utilizing a number of variables or proxies the study figured out that the information asymmetry model does not explain the underpricing of Thai IPOs. That explanatory power of the regression model was too weak to conclude that infmmation asymmetry leads to underpricing of Thai IPOs. While canying out the compare of mean test, it was found out that the ownership concentration variable is quite significant in segregating the sample into distinct categories. It was found out that small issues were less concentrated in terms of ownership and also had weak initial returns compared to issues having high ownership concentration |
| Year | 2004 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-04-60 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Venkatesh, Sunder; |
| Examination Committee(s) | Tang, John. C. S. ;Singha Chiamsiri ; |
| Scholarship Donor(s) | Government of Japan ; |
| Degree | Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 2004 |