Mohd Rashid, Rasidah and Abdul Rahim, Ruzita and Che-Yahya, Norliza (2015) The influence of information asymmetry on IPO lock-up provisions: Evidence from emerging markets. In: 11th Asian Academy of Management International Conference 2015 (AAMC 2015), 2nd - 4th October 2015, Penang, Malaysia.

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Abstract

Most of the major shareholders, known as promoters of the firms, are subjected to lock-up ratio for a certain period,following an IPO listing,Interestingly the lock-up ratios among firms vary, suggesting that it serves as a signaling tool to minimize potential conflicts between insiders and uninformed investors.This paper investigates the influence of two main factors, that is,underwriter reputation and market capitalization on lock-up ratios.Several interesting results are documented.The regression results show that market capitalization, a proxy for firm size (large firms), tend to have a higher lock-up ratio while the effects of underwriters reputation are weak.The findings, using the interaction of market capitalization and underwriter reputation,indicate that large firms with quality underwriters have lower information asymmetry and risk,and therefore are associated with bigger lock-up ratios.

Item Type:	Conference or Workshop Item (Paper)
Additional Information:	ISBN: 978-967-394-227-5 Organized by: Asian Academy of Management
Uncontrolled Keywords:	Lock-up Ratio; Market Capitalization; Underwriter Reputation; Information Asymmetry; Signaling
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	School of Business Management
Depositing User:	Mdm. Rasidah Mohd Rashid
Date Deposited:	24 Nov 2015 05:08
Last Modified:	17 Apr 2016 01:02
URI:	https://repo.uum.edu.my/id/eprint/16289

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