Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman

This study examines the influence of growth opportunity of a firm on IPO performance in the immediate and long-term aftermarket. This study also examines the interaction effect of IPO issued through public issue type on the relationship between growth opportunity of a firm and IPO performance. The d...

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Main Author:	Abdul Rahman, Siti Suhaila
Format:	Thesis
Language:	English
Published:	2020
Subjects:	Investment capital formation speculation
Online Access:	https://ir.uitm.edu.my/id/eprint/60040/1/60040.pdf
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id	my-uitm-ir.60040
record_format	uketd_dc
spelling	my-uitm-ir.600402024-03-13T05:09:28Z Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman 2020-04 Abdul Rahman, Siti Suhaila Investment, capital formation, speculation This study examines the influence of growth opportunity of a firm on IPO performance in the immediate and long-term aftermarket. This study also examines the interaction effect of IPO issued through public issue type on the relationship between growth opportunity of a firm and IPO performance. The declining pattern on the mean initial returns and the negative long-term aftermarket returns of Malaysian IPOs alarmed investors to wisely choose IPO firms for them to participate and produce their desirable returns. This study proposes that growth opportunity of a firm should significantly and positively influence the immediate aftermarket and long-term aftermarket performance of IPOs as such potentially assist investors to achieve for their desired profits. Therefore, this study is conducted to achieve for the following objectives: 1) To investigate the influence of growth opportunities of firms on the immediate aftermarket performance of IPOs ; 2) To investigate the influence of growth opportunities of firms on the long-term aftermarket performance of IPOs; 3) To investigate the interacting effect of public issues on the main relationship between growth opportunities of firms and both immediate aftermarket and long-term aftermarket performance of IPOs; 4) To investigate the influence of other independents variables (e.g., demand of IPOs, offer size, underwriter reputation, firm size and market condition) on IPO performance in both immediate and long-term aftermarket. This study employs cross-sectional multiple regression models to test for all of its hypotheses. Employing 403 IPOs listed in Main Market and ACE Market of Bursa Malaysia from January 2000 to December 2014, this study reveals that growth opportunity of a firm that is measured by the percentage of IPO proceeds allocated to growth activities has a positive and significant relationship to IPO performance in both the immediate and long-term aftermarket. Moreover, despite the insignificant interaction effect of public issue ratio on the relationship between growth opportunity of a firm and IPO performance in both periods, this study reveals that the interaction product between growth opportunity of a firm and public issue ratio strengthens the influence of growth opportunities of firms on performance of IPOs. 2020-04 Thesis https://ir.uitm.edu.my/id/eprint/60040/ https://ir.uitm.edu.my/id/eprint/60040/1/60040.pdf text en public masters Universiti Teknologi MARA Faculty of Business and Management Che Yahya, Norliza (Dr.)
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Che Yahya, Norliza (Dr.)
topic	Investment capital formation speculation
spellingShingle	Investment capital formation speculation Abdul Rahman, Siti Suhaila Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman
description	This study examines the influence of growth opportunity of a firm on IPO performance in the immediate and long-term aftermarket. This study also examines the interaction effect of IPO issued through public issue type on the relationship between growth opportunity of a firm and IPO performance. The declining pattern on the mean initial returns and the negative long-term aftermarket returns of Malaysian IPOs alarmed investors to wisely choose IPO firms for them to participate and produce their desirable returns. This study proposes that growth opportunity of a firm should significantly and positively influence the immediate aftermarket and long-term aftermarket performance of IPOs as such potentially assist investors to achieve for their desired profits. Therefore, this study is conducted to achieve for the following objectives: 1) To investigate the influence of growth opportunities of firms on the immediate aftermarket performance of IPOs ; 2) To investigate the influence of growth opportunities of firms on the long-term aftermarket performance of IPOs; 3) To investigate the interacting effect of public issues on the main relationship between growth opportunities of firms and both immediate aftermarket and long-term aftermarket performance of IPOs; 4) To investigate the influence of other independents variables (e.g., demand of IPOs, offer size, underwriter reputation, firm size and market condition) on IPO performance in both immediate and long-term aftermarket. This study employs cross-sectional multiple regression models to test for all of its hypotheses. Employing 403 IPOs listed in Main Market and ACE Market of Bursa Malaysia from January 2000 to December 2014, this study reveals that growth opportunity of a firm that is measured by the percentage of IPO proceeds allocated to growth activities has a positive and significant relationship to IPO performance in both the immediate and long-term aftermarket. Moreover, despite the insignificant interaction effect of public issue ratio on the relationship between growth opportunity of a firm and IPO performance in both periods, this study reveals that the interaction product between growth opportunity of a firm and public issue ratio strengthens the influence of growth opportunities of firms on performance of IPOs.
format	Thesis
qualification_level	Master's degree
author	Abdul Rahman, Siti Suhaila
author_facet	Abdul Rahman, Siti Suhaila
author_sort	Abdul Rahman, Siti Suhaila
title	Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman
title_short	Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman
title_full	Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman
title_fullStr	Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman
title_full_unstemmed	Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman
title_sort	malaysian ipo performances: the effect of growth opportunities and public issue / siti suhaila abdul rahman
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Business and Management
publishDate	2020
url	https://ir.uitm.edu.my/id/eprint/60040/1/60040.pdf
_version_	1794191834669383680

Malaysian IPO performances: the effect of growth opportunities and public issue / Siti Suhaila Abdul Rahman

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