Abu Bakar, Nashirah and Rosbi, Sofian (2016) Long term performance of Islamic share price for Initial Public Offerings (IPOs) in Malaysia: evidence from Sharia-compliant companies listed on the Malaysian stock exchange (2006-2010). International Journal of Management Science and Business Administration, 2 (6). pp. 43-57. ISSN 18495419

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Abstract

The objective of this study is to investigate the long-term (one to three year) performance of initial public offerings (IPOs) for sharia-compliant companies listed on the Malaysian Stock Exchange (MSE) for the period from 2006 till 2010. This study examines why some IPOs companies have a positive, and some IPOs companies have a negative long-term cumulative abnormal return (CAR). KLCI index is used as a benchmark for measuring long-term performance of IPOs for sharia-compliant companies. The empirical results show that the long-term performances for sharia-compliant companies are performed better (16.81 percent) than their benchmark for CAR equal-weight and the result for CAR value-weight show a slightly outperformed their benchmark (-0.07 percent). The results also indicate that CAR for equal-weight and value-weight of IPOs for sharia-compliant companies are significantly higher over performing by 14.58 percent and 4.11 percent respectively in the year 2006. While the results in 2007 (-1.34 percent) and 2008 (-3.43 percent) for value–weight are underperformed. This study also found that the underpricing, offer price, offer size, market type, trading/service industry, consumer product industry, property industry and REIT industry were statistically significant.

Item Type:	Article
Uncontrolled Keywords:	Islamic Finance, Sharia-Compliant Companies, Initial Public Offerings (IPOs), Long Term Performance, Cumulative Abnormal Return (CAR)
Subjects:	H Social Sciences > HG Finance
Divisions:	Islamic Business School
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	13 Aug 2019 07:50
Last Modified:	13 Aug 2019 07:50
URI:	https://repo.uum.edu.my/id/eprint/26300

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