Investigate the factors' effect on abnormal returns during the period of IPO in HOSE
Abstract
In the past decades, investigating the efficiency of capital market has been attracting much more academics. It is expected that earning abnormal return based on Initial Public Offering (IPO) events is rare because IPO is always remarkable event not only for firms
but also for investors. However, it is very surprising when the existence of abnormal return after IPOs is so common that some investors follow it as style investment in both developed and developing markets.
This study attempts to test whether there is abnormal return during the first thirty days after being listed on Hochiminh Stock Exchange of 268 companies between 2006 and
2011. Besides, the most notable in history of Vietnamese stock exchange was at 2007, therefore, the study also attempts to test whether companies were listed before ending
2007 lead to higher abnormal return after going on public (event study) compared with that of IPO after 2007. And the study also try to find the correlation of abnormal return and companies’ years of establishment prior to public listing, firm size prior to IPO, companies’ type of ownership, type of industries, return on equity and return on total
assets prior to being listed.