Tajuddin, Ahmad Hakimi and Mohd Rashid, Rasidah and Abdullah, Nur Adiana Hiau and Abdul Rahim, Ruzita (2015) An empirical examination of over-subscription in the Malaysian IPO market. International Journal of Economics and Management, 9 (S). pp. 81-102. ISSN 1823 - 836X

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Abstract

This paper examines the effects of the involvement of informed investors and the presence of information asymmetry in fixed price mechanism on over-subscription ratio in the Malaysian initial public offerings (IPO).Analyzing the data on 373 IPOs listed on Bursa Malaysia from 2000 to 2012, we find an insignificant positive relationship between informed investors and over-subscription.However, the relationship between information asymmetry and over subscription is strongly negative.The negative effect of company size suggests that big companies that are considered to have lower information asymmetry receive less investors’ interest, as investments in low risks companies are expected to provide lower initial returns.

Item Type:	Article
Uncontrolled Keywords:	fixed price mechanism, informed investors, information asymmetry, Malaysian IPOs, over-subscription ratio
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	School of Technology Management & Logistics
Depositing User:	Mdm. Rasidah Mohd Rashid
Date Deposited:	21 Mar 2016 07:10
Last Modified:	17 Apr 2016 03:30
URI:	https://repo.uum.edu.my/id/eprint/17631

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