/jurnalpengurusan Sat, 15 Oct 2022 10:13:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/under-pricing-and-listing-board-in-explaining-heterogeneity-of-opinion-regarding-values-of-malaysian-ipos/?utm_source=rss&utm_medium=rss&utm_campaign=under-pricing-and-listing-board-in-explaining-heterogeneity-of-opinion-regarding-values-of-malaysian-ipos Sat, 15 Oct 2022 10:13:56 +0000 /jurnalpengurusan/?post_type=article&p=6357 Heterogeneity of opinion regarding the value of an initial public offering (IPO) is arguably high due to the lack of prior information on the IPO. This situation is especially true in the case of a fixed-price IPO where, unlike book-building and auction offering methods, potential investors do not have the opportunity to “reveal” their private valuations of the IPO. Using a sample of 112 fixed-price Malaysian IPOs from January 2009 to December 2015, and employing OLS regression together with stepwise regression and hierarchical multiple regression, the objective of this study is to examine the level of under-pricing as the main factor that can possibly explain the heterogeneity of opinion among investors regarding the true value of a fixed-price IPO. The study found that the level of under-pricing, together with control variable ACE Market versus Main Market can explain 50.7 percent of the variation in the heterogeneity of opinion regarding the value of Malaysian fixed-price IPOs. The novelty of this study as opposed to an earlier study by Low and Yong (2013) is in terms of the more rigorous method employed in the form of not just the OLS, but also the stepwise and the hierarchical multiple regressions. This study also offered an improved model with higher R2. The results have some policy implications for the regulatory bodies of Bursa Malaysia in terms of special attention to IPOs listed on the ACE market due to their high initial return and price spread which could be due to excessive speculation.

]]> /jurnalpengurusan/article/growth-opportunity-and-ipo-value-an-empirical-study-of-malaysian-ipos/?utm_source=rss&utm_medium=rss&utm_campaign=growth-opportunity-and-ipo-value-an-empirical-study-of-malaysian-ipos Sun, 09 Oct 2022 18:08:58 +0000 /jurnalpengurusan/?post_type=article&p=4688 The offer price of Malaysian initial public offerings (IPOs) is mostly determined by fixed-price mechanism, indicating that information for investors regarding the actual value of an IPO is not being fully reflected in the offer price. The investors’ opinion in fact triggers IPO value on the first trading day in the market. This study aims to investigate the effect of growth opportunity on the pricing of Malaysian IPOs upon being listed on Bursa Malaysia. The sample of the study consists of 126 IPOs listed from January 2009 to December 2017. Through the analysis of cross-sectional and quantile regression in median and high quantiles, the study found a significant positive relationship between growth opportunity and total market value of IPOs. The findings suggest that IPOs which allocate a greater proportion of proceeds for firms’ future growth signal the firms’ quality, leading investors to trigger IPO value upwards during first-trading day. The findings have implications for the regulators, specifically the Securities Commission and Bursa Malaysia, to ensure that the information on the uses of proceeds revealed in IPO prospectuses is in line with the “Equity Guidelines” because this information gives impact on the investors’ decisions towards IPO subscription.

]]> /jurnalpengurusan/article/the-signaling-power-of-the-investment-banks-reputation-on-the-performance-of-ipos-on-bursa-malaysia/?utm_source=rss&utm_medium=rss&utm_campaign=the-signaling-power-of-the-investment-banks-reputation-on-the-performance-of-ipos-on-bursa-malaysia Sat, 08 Oct 2022 18:07:20 +0000 /jurnalpengurusan/?post_type=article&p=3377 This study examines the extent of the investment banks’ (IB) reputation, both high and low, affect the performance of the initial public offers (IPOs) on the Malaysian Main Board, Second Board and the MESDAQ market. Conventional and modified methodologies are used to measure the abnormal returns of the Malaysian samples between 2002 and 2008. The regression results based on the modified methods demonstrate that the reputation of IBs have significant influence over the performance of IPOs. However, the positive impact of the high reputation IBs (High IBs) is restricted to the Second Board over the short and medium terms but the negative influence of the low reputation IBs (Low IBs) is confined to the MESDAQ companies over the medium and the long terms. Contrary to many prior empirical studies, the reputation of the IBs does possess the signaling power to infer the future performance of IPOs.

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