Abdullah, Nur Adiana Hiau and Taufil Mohd, Kamarun Nisham (2004) Factors influencing the underpricing of initial public offerings in an emerging market: Malaysian evidence. IIUM Journal of Economics and Management, 12 (2). pp. 1-21. ISSN 1394-7680

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Abstract

By using 70 initial public offerings (IPOs) in the period 1992 to 1998, it is found that company size, indigenous population ownership and substantial shareholder losses are significant in explaining the variation of IPOs’ underpricing.Large companies are associated with providing higher discount on their shares to signal their superior future prospects.The unique characteristic of promoting the indigenous population, Bumiputra, to participate in the Malaysian equity market through the government regulatory intervention has reduced underpricing. However, such intervention might have contributed to the losses on the part of the substantial shareholders.Surprisingly, Leland and Pyle’s signalling model on entrepreneur’s fractional ownership could not be supported.

Item Type:	Article
Uncontrolled Keywords:	IPOs, Underpricing, Regulatory Intervention, Signalling Model, Ownership
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	College of Business
Depositing User:	Prof. Dr. Nur Adiana Hiau Abdullah
Date Deposited:	07 Sep 2015 02:18
Last Modified:	07 Sep 2015 02:18
URI:	https://repo.uum.edu.my/id/eprint/15410

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