Factors influencing the underpricing of initial public offerings in an emerging market: Malaysian evidence
By using 70 initial public offerings (IPOs) in the period 1992 to 1998, it is found that company size, indigenous population ownership and substantial shareholder losses are significant in explaining the variation of IPOs’ underpricing.Large companies are associated with providing higher discount on...
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| Main Authors: | , |
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| 格式: | Article |
| 语言: | English |
| 出版: |
The International Islamic University Malaysia
2004
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| 在线阅读: | http://repo.uum.edu.my/15410/1/102-169-1-SM.pdf http://repo.uum.edu.my/15410/ http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/102 |
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| 总结: | By using 70 initial public offerings (IPOs) in the period 1992 to 1998, it is found that company size, indigenous population ownership and substantial shareholder losses are significant in explaining the variation of IPOs’ underpricing.Large companies are associated with providing higher discount on their shares to signal their superior future prospects.The unique characteristic of promoting the indigenous population, Bumiputra, to participate in the Malaysian equity market through the government regulatory intervention has reduced underpricing. However, such intervention might have contributed to the losses on the part of the substantial shareholders.Surprisingly, Leland and Pyle’s signalling model on entrepreneur’s fractional
ownership could not be supported. |
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