Abstract

This paper uses a sample of all new listings in the two stock exchanges in Vietnam during 2007-2008 period to examine if an investment strategy that buys shares on their first days of trading and holds a for period of time makes any abnormal profit. We find that such a strategy is not profitable at least in the first year. Specifically, the first 25 trading days see CARs dropping significantly and it only recovers after 127 days but stays well below zero until 250 days after trading.