Study of Factors Which Influence the Return of Real Estate Security IPO Investment in Asean Countries
This study investigates the factors that might influence the returns of real estate security initial public offerings
(IPOs) in ASEAN (Association of Southeast Asian Nations) countries by studying property fund IPOs in Thailand and real
estate investment trust IPOs in Malaysia and Singapore during 2003 to 2013. The average return of the IPOs is -0.25%.
Market return, market capitalization, diversification of the underlying real estate and the use of the underlying real estate do
not statistically significantly affect the IPO returns. The duration between the offering date and the first trading date of the
IPOs is the only statistically significant determinant of the returns but the impact is negligent. The research results appear to
support the existence of market efficiency in the primary market of real estate security and the investment on a real estate
security’s IPO is not the efficient method for investors to build up their wealth.
Index Terms- ASEAN countries, investment performance, IPO, real state security.