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

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  • Nguyen Van Tan
  • Ninh Thi Trang

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 (ARt and CAR1,t) change over time after listing. In particular, these IPOs tend to underperform from the 14th month considering ARt. 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.

Suggested Citation

  • Nguyen Van Tan & Ninh Thi Trang, 2023. "The long-run performance of initial public offerings: evidence from a transition economy," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 13(5), pages 574-591.
    • Handle: RePEc:ids:afasfa:v:13:y:2023:i:5:p:574-591
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