Title: The long-run performance of initial public offerings: evidence from a transition economy

Authors: Nguyen Van Tan; Ninh Thi Trang

Addresses: Becamex Business School, Eastern International University, Binh Duong Province, Vietnam ' Becamex Business School, Eastern International University, Binh Duong Province, Vietnam; International University, Ho Chi Minh City, Vietnam

Abstract: This study provides empirical evidence on the long-run performance of initial public offerings (IPOs), along with identifying factors affecting the long-run performance of IPOs in Vietnam. By selecting 183 IPOs in Vietnam from 2005 to 2019, the authors conclude that the long-run performance measures of IPOs (AR_t and CAR_1,t) change over time after listing. In particular, these IPOs tend to underperform from the 14th month considering AR_t. IPOs' underperformance occurs when there are negative cumulative abnormal returns in the long run. This study adopts the Bayesian model averaging (BMA) method and the results show that factors affecting the long-run performance of the IPOs include initial returns and offer size.

Keywords: equitisation; initial public offerings; Bayesian model averaging method; long-run performance; state-owned enterprises.

DOI: 10.1504/AAJFA.2023.133419

Afro-Asian Journal of Finance and Accounting, 2023 Vol.13 No.5, pp.574 - 591

Accepted: 27 Dec 2021
Published online: 15 Sep 2023 *

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