PERTANIKA JOURNAL OF SOCIAL SCIENCES AND HUMANITIES
e-ISSN 2231-8534
ISSN 0128-7702
The Performance and Signalling Process of Initial Public Offers in Malaysia: 1980-1996
Annuar M.N. and Shamsher M.
Pertanika Journal of Social Science and Humanities, Volume 6, Issue 2, September 1998
Keywords: Initial public offers, signalling, underpricing
Published on:
Malaysian IPOs are, on average, substantially underpriced compared to underpricing in other emerging and developed market. The findings of this study suggest that this average abnormal return on the first trading day is 135 percent, after which the returns decline slightly in the first week and gradually increase thereafter. A test on possible signalling attributes of new issues to potential investors reveal that of all the suggested determinants, the ex-ante risk factor seems to explain the level of underpricing.
ISSN 0128-7702
e-ISSN 2231-8534
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