The Long-run Abnormal Performance of Jordanian Initial Public Offerings (IPOs) listed in Amman Stock Exchange During The period (1993-2011)

Abstract

Abstract
This study aims at verifying the long-run abnormal performance for the
Jordanian initial public offerings (IPOs) listed in Amman stock exchange
during the period from (1st January,1993 until 31st December, 2011). In
order to achieve the study objectives, the researchers applied the most
common approach in the previous literature which is called ''The Event
Study'' on the study sample which consisted of all the Jordanian initial
public offerings that are listed in Amman stock exchange during the study
period, which were (119) companies .Then, the researchers calculated the
monthly returns for these companies for 60 months (5years) after public
offering.
In order to explore the long-run abnormal performance, the researchers
applied three major aggregating models which are: Firstly, the cumulative
abnormal returns (CAR). Secondly, the buy and hold abnormal returns
(BHAR). Thirdly, the wealth relative model (WR). The researchers also
chooses three major benchmarks which are: the general monthly index for
Amman stock exchange weighted by market capitalization (ASEI), the
matching firms (MF) for the Jordanian initial public offerings in terms of
the (size, age, and sector) as much as possible, which also already exist in
the market, and their stocks traded in the Amman stock exchange and the
capital assets pricing model (CAPM).