The Long Run Performance of Initial Public Offerings: The Experience in Vietnam Stock Market

• Main Authors: Nguyen Danh Trong, 阮名仲
• Other Authors: 楊聲勇
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/54610096848201934809

碩士 === 國立中興大學 === 財務金融系所 === 100 === Vietnam’s stock exchanges which setup in 2000. From to now with over 10 year, it is still a small market and there is not too much research about Vietnam Stock Market. Underpricing and long-term performance are common researches in the world. So in this paper, we study the long run performance of initial public offerings issued from 2007-2010 of 185 firms listed in HOSE (Ho Chi Minh Stock Exchange) in three case (1) buy and hold for 1 year, (2) buy and hold for 2 year, (3) buy and hold for 3 year. By compare IPO firms with a sample of matching firms to check the long-run performance of HOSE and using a multiple regression OLS to find what factors effect to the long term return. The results of our research have some main points: i) The same result for short-term performance (underpricing) and long run performance compare with other countries ii) Ho Chi Minh Stock Exchange which we find an underperformance in long-run performance and the underperformance level increases when the years for buy and hold strategy increases with Wealth Relative equal 0.91, 081, 0.64 after buy and hold for 1,2,3 year. iii) We can find a significant positive of relation between long term performance and market return. iv) ROE and debt ratio are an important factors which investor care when they invest in a company, especial IPO firms. Our research finds positive significant relationship between long-run return and ROE and negative between long-run return and debt ratio.