Fear of the COVID-19 pandemic and IPO aftermarket liquidity in ASEAN-5

Abstract

Purpose This study aims to examine the relationship between the fear index and initial public offering (IPO) aftermarket liquidity in ASEAN during the bearish time, the COVID-19 pandemic. Design/methodology/approach This study uses random effect panel regression analysis using two proxies of IPO aftermarket liquidity, namely, volume and turnover, on data of 90 IPO companies in the ASEAN-5 countries over four study periods: 30, 60, 90 and 100 days, after their IPOs. Findings The results indicate that the COVID-19 fear index significantly affects liquidity for all periods. The fear index decreases the stock aftermarket liquidity of ASEAN-5 IPO companies. The findings are consistent with additional tests. Originality/value This study initiates research during the COVID-19 pandemic in ASEAN-5 countries. Furthermore, while the other studies examine the stock performance of existing listed companies, this study focuses exclusively on the liquidity of companies that went public through IPOs in 2020.

Impact of Business Risk and Board of Directors Size on Dividend Policy in ASEAN-5 During the COVID-19 Pandemic

“…Singapore, being the sole developed nation within ASEAN, encountered a 13.3% reduction in its Gross Domestic Product (GDP) during the initial quarter of 2020, followed by a subsequent recovery in the second quarter of the same year. Developing nations within ASEAN, including the Philippines, Indonesia, Malaysia, and Thailand, similarly witnessed a downturn in GDP growth from the first to the second quarter of 2020 (Wigantini & Nainggolan, 2023). The ensuing table illustrates the Gross Domestic Product (GDP) of the ASEAN-5 nations throughout the pandemic period spanning from 2020 to 2022: It is evident that the Gross Domestic Product (GDP) of the Philippines was US$361.751 billion in 2020, increased to US$394.087 billion in 2021, and further rose to US$404.284 billion in 2022.…”