Abstract

http://ssrn.com/abstract=1534447
 
 

References (84)



 


 



Firm-Specific Determinants and Outcomes of Initial Public Offerings in Thailand, 2001–2007


Jirapun Anne Chorruk


Griffith University - Department of Accounting, Finance and Economics

Andrew C. Worthington


Griffith University; Financial Research Network (FIRN)

January 11, 2010


Abstract:     
This paper examines the firm-specific determinants and outcomes of initial public offerings (IPOs) in Thailand using data on 5,228 private and newly publicly listed firms between 2001 and 2007. We use the listing requirements of the Stock Exchange of Thailand (SET) to identify all private firms compulsorily registered with the Department of Business Development, Thai Ministry of Commerce that are potential IPOs. Analysis of the determinants of IPOs reveals that firms that are younger, larger, more leveraged and with lower interest rates from borrowing are more likely to list. Analysis of post-IPO performance suggests that Thai firms going public succeed in lowering their borrowing rates, and that unlike comparable findings elsewhere, profitability does not decline after listing. However, despite these findings, the rate of listing in Thailand remains relatively low, and the paper hypothesises that relatively high listing costs and the availability of alternative cheaper debt financing sources, the large shares of foreign subsidiary and small and medium-sized business operating in Thailand, along with market and political instability and cultural factors act against Thai IPOs.

Number of Pages in PDF File: 27

Keywords: initial public offerings, decision to go public, listing costs and benefits

JEL Classification: G32, G24

working papers series


Download This Paper

Date posted: January 11, 2010  

Suggested Citation

Chorruk, Jirapun Anne and Worthington, Andrew C., Firm-Specific Determinants and Outcomes of Initial Public Offerings in Thailand, 2001–2007 (January 11, 2010). Available at SSRN: http://ssrn.com/abstract=1534447 or http://dx.doi.org/10.2139/ssrn.1534447

Contact Information

Jirapun Anne Chorruk
Griffith University - Department of Accounting, Finance and Economics ( email )
PMB 50
Gold Coast Queensland 9726
Australia
Andrew C. Worthington (Contact Author)
Griffith University ( email )
170 Kessels Road
Nathan, Queensland 4111
Australia
+61 (0)7 3735 4273 (Phone)
+61 (0)7 3735 3719 (Fax)
Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
HOME PAGE: http://www.firn.org.au

Feedback to SSRN


Paper statistics
Abstract Views: 684
Downloads: 94
Download Rank: 161,896
References:  84
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.281 seconds