The impact of institutional quality on ipos oversubscription: evidence in Malaysia

The major purpose of this study is to examine the impact of institutional quality on oversubscription of initial public offerings (IPOs) listed in Bursa Malaysia from period of 2000 to 2016. This study exists of six controls variable for controlling the institutional quality on oversubscription. Num...

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Main Author:	Koh, Yen Shin
Format:	Thesis
Language:	eng eng eng
Published:	2019
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/8215/1/s824362_01.pdf https://etd.uum.edu.my/8215/2/DEPOSIT%20PERMISSION_s824362.pdf https://etd.uum.edu.my/8215/3/s824362_references.docx
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id	my-uum-etd.8215
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spelling	my-uum-etd.82152021-05-04T02:18:33Z The impact of institutional quality on ipos oversubscription: evidence in Malaysia 2019 Koh, Yen Shin Mohd Rashid, Rasidah School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance The major purpose of this study is to examine the impact of institutional quality on oversubscription of initial public offerings (IPOs) listed in Bursa Malaysia from period of 2000 to 2016. This study exists of six controls variable for controlling the institutional quality on oversubscription. Numerous studies have examined the relationship between institutional quality and oversubscription on IPOs underpricing. This study fills the gap to determine the institutional quality on oversubscription as previous studies prove the oversubscription is significant to underpricing. The six dimension of institutional quality collected from World Governance Indicators (WGI) which consists of voice and accountability, government effectiveness, political stability and absence of violence/terrorism, regulatory quality, rule of law, and control of corruption. The information asymmetry and signaling theory are employed to illustrate the relationship of institutional quality to oversubscription. This study employs cross-sectional multiple regression analysis to test for its entire hypothesis. Analyzing the data of 392 IPOs in Malaysia, the result reveals that voice and accountability, and control of corruption are positive significant to oversubscription while regulatory quality is negative significant on oversubscription. However, government effectiveness, political stability and rule of law show insignificant to oversubscription. The GDP growth rate, firm size and IPOs offer price significant influence the oversubscription. This study could contribute to benefit investors when making investment decision. The results may alert the regulators to implement the sound policies to enhance the IPO market. Future research could examine the institutional quality on oversubscription involve in Asian region, developing and developed countries instead focus in Malaysia. 2019 Thesis https://etd.uum.edu.my/8215/ https://etd.uum.edu.my/8215/1/s824362_01.pdf text eng public https://etd.uum.edu.my/8215/2/DEPOSIT%20PERMISSION_s824362.pdf text eng staffonly https://etd.uum.edu.my/8215/3/s824362_references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Mohd Rashid, Rasidah
topic	HG Finance
spellingShingle	HG Finance Koh, Yen Shin The impact of institutional quality on ipos oversubscription: evidence in Malaysia
description	The major purpose of this study is to examine the impact of institutional quality on oversubscription of initial public offerings (IPOs) listed in Bursa Malaysia from period of 2000 to 2016. This study exists of six controls variable for controlling the institutional quality on oversubscription. Numerous studies have examined the relationship between institutional quality and oversubscription on IPOs underpricing. This study fills the gap to determine the institutional quality on oversubscription as previous studies prove the oversubscription is significant to underpricing. The six dimension of institutional quality collected from World Governance Indicators (WGI) which consists of voice and accountability, government effectiveness, political stability and absence of violence/terrorism, regulatory quality, rule of law, and control of corruption. The information asymmetry and signaling theory are employed to illustrate the relationship of institutional quality to oversubscription. This study employs cross-sectional multiple regression analysis to test for its entire hypothesis. Analyzing the data of 392 IPOs in Malaysia, the result reveals that voice and accountability, and control of corruption are positive significant to oversubscription while regulatory quality is negative significant on oversubscription. However, government effectiveness, political stability and rule of law show insignificant to oversubscription. The GDP growth rate, firm size and IPOs offer price significant influence the oversubscription. This study could contribute to benefit investors when making investment decision. The results may alert the regulators to implement the sound policies to enhance the IPO market. Future research could examine the institutional quality on oversubscription involve in Asian region, developing and developed countries instead focus in Malaysia.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Koh, Yen Shin
author_facet	Koh, Yen Shin
author_sort	Koh, Yen Shin
title	The impact of institutional quality on ipos oversubscription: evidence in Malaysia
title_short	The impact of institutional quality on ipos oversubscription: evidence in Malaysia
title_full	The impact of institutional quality on ipos oversubscription: evidence in Malaysia
title_fullStr	The impact of institutional quality on ipos oversubscription: evidence in Malaysia
title_full_unstemmed	The impact of institutional quality on ipos oversubscription: evidence in Malaysia
title_sort	impact of institutional quality on ipos oversubscription: evidence in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2019
url	https://etd.uum.edu.my/8215/1/s824362_01.pdf https://etd.uum.edu.my/8215/2/DEPOSIT%20PERMISSION_s824362.pdf https://etd.uum.edu.my/8215/3/s824362_references.docx
_version_	1747828353010761728

The impact of institutional quality on ipos oversubscription: evidence in Malaysia

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