Performance of Malaysian IPOs and Impact of Return Determinants

Journal of Business Studies Quarterly, Vol. 4, No. 2, pp. 140-158, 2012

19 Pages Posted: 5 Feb 2013

See all articles by Nejat Younesi

Nejat Younesi

Multimedia University (MMU)

Aref Mahdavi Ardekani

University of Paris 1 Pantheon-Sorbonne, CES; Université de Limoges, LAPE

Mohammad Hashemijoo

Florida International University (FIU); Multimedia University (MMU)

Date Written: 2012

Abstract

This study has examined the IPO performance in Malaysia from 2007 to 2010. Results show that under-pricing exists in the first day of trading during the particular period, but results show that the degree of under-pricing is dramatically decreased in comparison with what is shown in previous studies. Empirical findings also show that none of return determinants including Age, size, total unit offered, offering price and KLCI index movement are able to affect on IPO initial return. It shows that Malaysian IPOs follow anarchy during this period while their performances are not predictable by return determinants.

Keywords: initial public offering, stock market, under-pricing

JEL Classification: G12, G14, G15

Suggested Citation

Younesi, Nejat and Mahdavi Ardekani, Aref and Hashemijoo, Mohammad and Hashemijoo, Mohammad, Performance of Malaysian IPOs and Impact of Return Determinants (2012). Journal of Business Studies Quarterly, Vol. 4, No. 2, pp. 140-158, 2012, Available at SSRN: https://ssrn.com/abstract=2212013

Nejat Younesi

Multimedia University (MMU)

Jalan Multimedia
Cyberjaya, Selangor 63100
Malaysia

Aref Mahdavi Ardekani (Contact Author)

University of Paris 1 Pantheon-Sorbonne, CES ( email )

106-112 Boulevard de l'hopital
106-112 Boulevard de l'Hôpital
Paris Cedex 13, 75647
France

Université de Limoges, LAPE

5 rue Félix Eboué BP3127
LIMOGES, 87031
France

Mohammad Hashemijoo

Florida International University (FIU) ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Multimedia University (MMU) ( email )

Jalan Multimedia
Cyberjaya, Selangor 63100
Malaysia

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