WINNER’S CURSE AND IPO INITIAL PERFORMANCE: NEW EVIDENCE FROM MALAYSIA

Ruzita Abdul Rahim; Nor Azizan Che Embi; Othman Yong

Makale detayları

WINNER’S CURSE AND IPO INITIAL PERFORMANCE: NEW EVIDENCE FROM MALAYSIA

Yazarlar:

Ruzita Abdul Rahim | Nor Azizan Che Embi | Othman Yong

Yayıncı:

Sosyal Bilimler Araştırmaları Derneği

Dergi:

International Journal of Business and Management Studies 2012 Vol.4 Issue 2, pp.151-159

Belge Tipi:

Makale

Yayın Tarihi:

11/2012

Belge Dili:

Türkçe

Document ID (Org No.):

2000809360

Sıklık:

İki Yıllık

eISSN:

1309-8047

Özet:

 

This study examines the winner’s curse hypothesis in a sample of 384 IPOs listed on Bursa Malaysia from 1999 to 2008. We use two alternative measures to test winner’s curse; allocation rate (ALLOCTj) measures the probability of getting the allocation while private placement (DPRIVATE) measures the institutional investor involvement in the IPOs. The coefficient of both ALLOCTj and DPRIVATE are significantly negative consistent with winner’s curse hypothesis. Investors are more likely to get (win) most of their subscription if the IPOs are overpriced. Similarly, investors identify the issues that do not involve institutional investors as risky and overpriced. Issuers/underwriters proactively respond by deliberately underpricing the IPOs to allure the uninformed investors into the market.

Makale detayları

WINNER’S CURSE AND IPO INITIAL PERFORMANCE: NEW EVIDENCE FROM MALAYSIA

Yazarlar: Ruzita Abdul Rahim | Nor Azizan Che Embi | Othman Yong

Yayıncı: Sosyal Bilimler Araştırmaları Derneği

Dergi: International Journal of Business and Management Studies 2012 Vol.4 Issue 2, pp.151-159

Belge Tipi: Makale

Yayın Tarihi: 11/2012

Belge Dili: Türkçe

Document ID (Org No.): 2000809360

Sıklık: İki Yıllık

eISSN: 1309-8047

Sayı

Yazarlar:

Ruzita Abdul Rahim | Nor Azizan Che Embi | Othman Yong

Yayıncı:

Sosyal Bilimler Araştırmaları Derneği

Dergi:

International Journal of Business and Management Studies 2012 Vol.4 Issue 2, pp.151-159

Belge Tipi:

Makale

Yayın Tarihi:

11/2012

Belge Dili:

Türkçe

Document ID (Org No.):

2000809360

Sıklık:

İki Yıllık

eISSN:

1309-8047