Журнал Академии стратегического менеджмента

1939-6104

Абстрактный

The Antecedences of IPO Fundraising Success: Evidence from IPOs in Thailand

Satakoon K

A firm would able to create Maximizing wealth by the transformation of traditional business ownership into public as Initial Public Offering (IPO) fundraising process. Under IPOs strategy, it is a bridge of creating firm value into maximizes wealth both in short-run and in long-run. In short run, a firm value could be boosted up its market price over its intrinsic value. When a firm entry to IPO process, CFO would effort so hard to create overvaluation because of investors’ attention. In long run, CFO would allocate funds from offering shares of IPOs to create growth in firm value. However, this research concentrates on how firm value is impacted both in long term and short term by the antecedences and affected the IPOs fundraising success at the end. This research applied the creation of firm value and IPO fundraising success literatures in term of return on assets, return on equity, and return on sales to examine the effect of the antecedences as good characteristic focus, unleveraged capital concentration, and capacity payout performance on firm value in short run as firm overvaluation and in long run as firm growth that not many researches have done on this concentration of this advantage. This research used questionnaires to conduct data and to measure the antecedences variables. Additionally, a financial secondary data of 340 IPO firms in Thailand from 2008 to 2019 is also used that have been recommended by Securities and Exchange Commission (SEC) for offering stock in SET and MAI to measure the firm value in short and long term and the IPO fundraising success. The result shows an evidence to support a positive relationship between good characteristic focus and long run of firm value as firm growth, also found that unleveraged capital concentration impacts firm value positively in long term as firm growth and negatively in short run as firm overvaluation. Additionally, a result also indicates the significantly negative effect of capacity payout performance on firm value in short term as firm overvaluation. Moreover, that the firm value impacts IPO fundraising success only in long run of firm value as firm growth based on return on assets and return on sale but not in short run as firm overvaluation.

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