An analysis on the demand for inital public offerings and its aftermarket performance: Evidence from the Philippine stock market for the period 2000-2010
This study aims to establish the relationship between IPO investor demand and its aftermarket performance in the Philippine stock market. The researchers found out that the high demand IPOs earn positive initial returns, while low demand IPOs earn negative initial return. On the contrary, high deman...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2012
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/7865 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | This study aims to establish the relationship between IPO investor demand and its aftermarket performance in the Philippine stock market. The researchers found out that the high demand IPOs earn positive initial returns, while low demand IPOs earn negative initial return. On the contrary, high demand IPOs realize positive long-run excess returns. This result implies that investor demand affects initial and long-run aftermarket performance of IPOs. The result suggests that (1) there has been a high degree of underpricing IPOs in the Philippines which greatly affects IPOs initial performance and, (2) IPOs long-run aftermarket performance would reflect their true value as more information is available to investors. |
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