A RELATIONSHIP BETWEEN FAMILY OWNERSHIP STRUCTURES AND INITIAL RETURNS ON INITIAL PUBLIC OFFERING STOCKS

Abstract

              The objective of this study is to investigate a relationship between family ownership structures and initial returns on initial public offering stocks, using companies in the stock exchange of Thailand (SET) during the year 2011-2020. The sample consists of 89 IPO stocks.

             The evidence shows that 80.18% of initial public offering stocks in Thailand are characterized as a family ownership structure, with an average initial return of 23.92%. The results from multiple regression analysis show that proportion of stocks owned by family members has significantly positive correlation with initial returns on initial public offering. On the other hand, proportion of stocks sold to the public and firm size have significantly negative correlation with initial returns on initial public offering. These results suggest that investors invest in stocks with high percentage of family ownership, low percentage of stocks sold to the public, or large companies in term of total assets.