The intra-industry effect of initial public offering to listed companies of selected industries in the Philippines from 2000-2014

• Main Authors: Belonio, Hillary P., Bonifacio, Angela Jianne B., Monteiro, Ma. Graciela D., Umadac, Dustinne F.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Equity > Philippines; Investments > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7299
• Institution: De La Salle University

In the Philippines, the equity market has been rapidly growing resulting to more companies entering the market and people investing in it. One way for a company to become part of the market is through an Initial Public Offering (IPO) in which companies sell its shares to the public for the first time. In this study, the researchers looked into the abnormality of the returns on the rival firms' stock prices before, during, and after the IPO. The researchers utilized IPOs from three industries namely: electric services, commercial banks, and operators of apartment buildings that were listed from 2000-2014. The results were obtained by getting the cumulative abnormal return (CAR) per industry and testing its significance per event window, [-10, 10], [-5, 5], [-3, 3], [-1, 1], using the Boehmer, Musumeci, and Poulsen (BMP) test. This study shows that an IPO in electric services industry does not impose a significant impact on all event windows. An IPO in the Commercial Banks industry has a significant impact only on [-1, 1] event window and the operators of apartment building industry has a significant impact on all event windows.