Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah

This dissertation examines several issues related to the initial public offering (IPO) firms in Malaysia. The main aim of this study is to investigate whether IPO firms in Malaysia that goes public during the period of 1997-1998 have reported earnings in excess of cash flows by taking positive accru...

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Main Author:	Wan Abdullah, Wan Razazila
Format:	Thesis
Language:	English
Published:	2001
Online Access:	https://ir.uitm.edu.my/id/eprint/102600/2/102600.pdf
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id	my-uitm-ir.102600
record_format	uketd_dc
spelling	my-uitm-ir.1026002024-09-28T22:51:55Z Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah 2001 Wan Abdullah, Wan Razazila This dissertation examines several issues related to the initial public offering (IPO) firms in Malaysia. The main aim of this study is to investigate whether IPO firms in Malaysia that goes public during the period of 1997-1998 have reported earnings in excess of cash flows by taking positive accruals. A sample of 84 IPO firms listed on the KLSE during that period is used in this study. The results reported in this study suggest that IPOs in Malaysia during the period 19971998 manage their earnings upwards prior to public listing. This study views that IPO firms experienced poor long-run performance after being listed on the Kuala Lumpur Stock Exchange. In measuring the IPOs share price performance, the study measures abnormal returns using a buy-and-hold return approach. Abnormal returns are calculated based on the difference between the holding period returns of sample firms and control companies. Control companies matched by industry and size are selected from the population of non-equity offering in that particular year. The statistical tests performed confirmed that the IPO firms experience a significant positive abnormal return during the initial period and a significant poor long run share price performance relative to non-IPO firms after being listed on the KLSE. However, there is no evidence found in the study to suggest that the pre offering earnings management is able to predict the post issue on negative abnormal returns. Thus, the results reveal that Malaysian IPOs, which manage earnings upward prior to public listing, may not have the intention to mislead their investors. 2001 Thesis https://ir.uitm.edu.my/id/eprint/102600/ https://ir.uitm.edu.my/id/eprint/102600/2/102600.pdf text en public masters Universiti Teknologi MARA (UiTM) Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
description	This dissertation examines several issues related to the initial public offering (IPO) firms in Malaysia. The main aim of this study is to investigate whether IPO firms in Malaysia that goes public during the period of 1997-1998 have reported earnings in excess of cash flows by taking positive accruals. A sample of 84 IPO firms listed on the KLSE during that period is used in this study. The results reported in this study suggest that IPOs in Malaysia during the period 19971998 manage their earnings upwards prior to public listing. This study views that IPO firms experienced poor long-run performance after being listed on the Kuala Lumpur Stock Exchange. In measuring the IPOs share price performance, the study measures abnormal returns using a buy-and-hold return approach. Abnormal returns are calculated based on the difference between the holding period returns of sample firms and control companies. Control companies matched by industry and size are selected from the population of non-equity offering in that particular year. The statistical tests performed confirmed that the IPO firms experience a significant positive abnormal return during the initial period and a significant poor long run share price performance relative to non-IPO firms after being listed on the KLSE. However, there is no evidence found in the study to suggest that the pre offering earnings management is able to predict the post issue on negative abnormal returns. Thus, the results reveal that Malaysian IPOs, which manage earnings upward prior to public listing, may not have the intention to mislead their investors.
format	Thesis
qualification_level	Master's degree
author	Wan Abdullah, Wan Razazila
spellingShingle	Wan Abdullah, Wan Razazila Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah
author_facet	Wan Abdullah, Wan Razazila
author_sort	Wan Abdullah, Wan Razazila
title	Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah
title_short	Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah
title_full	Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah
title_fullStr	Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah
title_full_unstemmed	Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah
title_sort	earnings management and performance of malaysian ipo firms / wan razazila wan abdullah
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Faculty of Accountancy
publishDate	2001
url	https://ir.uitm.edu.my/id/eprint/102600/2/102600.pdf
_version_	1811769227619598336

Earnings management and performance of Malaysian IPO firms / Wan Razazila Wan Abdullah

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