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
Date Written: 2012
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: Suggested Citation