The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia

The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia

This study examines the effects of institutional ownership, leverage and earnings per share on the offer price in 71 Malaysian IPOs within the periods from year 2011 to 2015. This research examines the hypotheses by employing cross-sectional multiple regression. The finding indicates that there is...

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Main Author: Zi, Ong Chui
Format: Thesis
Language:eng
eng
Published: 2016
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/6102/1/s818364_01.pdf
https://etd.uum.edu.my/6102/2/s818364_02.pdf
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id my-uum-etd.6102
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Mohd Rashid, Rasidah
topic HG Finance
spellingShingle HG Finance
Zi, Ong Chui
The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia
description This study examines the effects of institutional ownership, leverage and earnings per share on the offer price in 71 Malaysian IPOs within the periods from year 2011 to 2015. This research examines the hypotheses by employing cross-sectional multiple regression. The finding indicates that there is a negative relationship between institutional ownership and IPO offer price. This implies that high percentage of institutional investors involve into IPO markets lead to less uncertainty of IPOs, and hence low offer price is issued since uninformed investors require high initial returns from investing, which supports Rock’s Winner’s Curse Theory. Moreover, earnings per share is positively related to the IPO offer price. This indicates that a good quality firms able to generate favorable profits in future, in which support signaling theory. However, there is no relationship between leverage and IPO offer price is found from the results.
format Thesis
qualification_name masters
qualification_level Master's degree
author Zi, Ong Chui
author_facet Zi, Ong Chui
author_sort Zi, Ong Chui
title The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia
title_short The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia
title_full The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia
title_fullStr The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia
title_full_unstemmed The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia
title_sort effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of ipo in malaysia
granting_institution Universiti Utara Malaysia
granting_department School of Economics, Finance & Banking
publishDate 2016
url https://etd.uum.edu.my/6102/1/s818364_01.pdf
https://etd.uum.edu.my/6102/2/s818364_02.pdf
_version_ 1747828021523382272
spelling my-uum-etd.61022021-12-08T03:13:39Z The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia 2016 Zi, Ong Chui Mohd Rashid, Rasidah School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance This study examines the effects of institutional ownership, leverage and earnings per share on the offer price in 71 Malaysian IPOs within the periods from year 2011 to 2015. This research examines the hypotheses by employing cross-sectional multiple regression. The finding indicates that there is a negative relationship between institutional ownership and IPO offer price. This implies that high percentage of institutional investors involve into IPO markets lead to less uncertainty of IPOs, and hence low offer price is issued since uninformed investors require high initial returns from investing, which supports Rock’s Winner’s Curse Theory. Moreover, earnings per share is positively related to the IPO offer price. This indicates that a good quality firms able to generate favorable profits in future, in which support signaling theory. However, there is no relationship between leverage and IPO offer price is found from the results. 2016 Thesis https://etd.uum.edu.my/6102/ https://etd.uum.edu.my/6102/1/s818364_01.pdf text eng public https://etd.uum.edu.my/6102/2/s818364_02.pdf text eng public masters masters Universiti Utara Malaysia Abdul-Rahim, R., Che-Embi, N.A. & Yong, O. (2012). Winner’s curse and IPO initial performance: New evidence from Malaysia. International Journal of Business and Management Studies, 4(2), 151-159. Abdul-Rahim, R. & Che-Yahya, N. (2015). Moderating Effect of Information Asymmetry on the Signalling Role of IPO Lockup Provision. Proceedings of Sydney International Business Research Conference 2015, University of Western Sydney Campbelltown, Australia. Aggarwal, R., Bhagat, S. & Rangan, S. (2009). 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