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An Empirical Study On Malaysian Ipos And Their Profit Forecasts.

This paper is divided into two parts. The first part examines the trend of IPO's premiums and accuracy of profits forecasting in short run and long run. The second part examines the reputation of underwriters and size of auditors as possible determination of IPO's premium and accuracy o...

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Main Author: Chang, Ling Foon
Format: Project Paper Report
Language:English
English
Published: 1998
Online Access:http://psasir.upm.edu.my/id/eprint/12028/1/GSM_1998_19.pdf
http://psasir.upm.edu.my/id/eprint/12028/
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spelling my.upm.eprints.120282024-06-27T08:31:44Z http://psasir.upm.edu.my/id/eprint/12028/ An Empirical Study On Malaysian Ipos And Their Profit Forecasts. Chang, Ling Foon This paper is divided into two parts. The first part examines the trend of IPO's premiums and accuracy of profits forecasting in short run and long run. The second part examines the reputation of underwriters and size of auditors as possible determination of IPO's premium and accuracy of profits forecasting. Two hundred and forty-five new issues were analysed for the period 1993-1996. There are significant excess returns on the first day of trading with an average premium of 88 per cent. The first day lPO's premiums have a significant effect of two difference economy period. The average first day premium is about 104 per cent in the economy boom period (93-94) compared to 66 per cent in the post boom period. The results on profit forecast error showed reasonable accuracy of forecasts with an error of -2.72 per cent. Looking at the reputation of underwriters, size of auditors and the first day IPO's premium. The size of auditors and reputation of underwriters are not the determinates of the first day IPO's premium. From a sample of 137 companies after screening for outliers, 62 companies under-estimated and 75 over-estimated their profit forecasting. There is no statistically significant relationship between reputation of underwriter and size of auditor with the accuracy of profit forecasts. 1998 Project Paper Report NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/12028/1/GSM_1998_19.pdf Chang, Ling Foon (1998) An Empirical Study On Malaysian Ipos And Their Profit Forecasts. [Project Paper Report] English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
description This paper is divided into two parts. The first part examines the trend of IPO's premiums and accuracy of profits forecasting in short run and long run. The second part examines the reputation of underwriters and size of auditors as possible determination of IPO's premium and accuracy of profits forecasting. Two hundred and forty-five new issues were analysed for the period 1993-1996. There are significant excess returns on the first day of trading with an average premium of 88 per cent. The first day lPO's premiums have a significant effect of two difference economy period. The average first day premium is about 104 per cent in the economy boom period (93-94) compared to 66 per cent in the post boom period. The results on profit forecast error showed reasonable accuracy of forecasts with an error of -2.72 per cent. Looking at the reputation of underwriters, size of auditors and the first day IPO's premium. The size of auditors and reputation of underwriters are not the determinates of the first day IPO's premium. From a sample of 137 companies after screening for outliers, 62 companies under-estimated and 75 over-estimated their profit forecasting. There is no statistically significant relationship between reputation of underwriter and size of auditor with the accuracy of profit forecasts.
format Project Paper Report
author Chang, Ling Foon
spellingShingle Chang, Ling Foon
An Empirical Study On Malaysian Ipos And Their Profit Forecasts.
author_facet Chang, Ling Foon
author_sort Chang, Ling Foon
title An Empirical Study On Malaysian Ipos And Their Profit Forecasts.
title_short An Empirical Study On Malaysian Ipos And Their Profit Forecasts.
title_full An Empirical Study On Malaysian Ipos And Their Profit Forecasts.
title_fullStr An Empirical Study On Malaysian Ipos And Their Profit Forecasts.
title_full_unstemmed An Empirical Study On Malaysian Ipos And Their Profit Forecasts.
title_sort empirical study on malaysian ipos and their profit forecasts.
publishDate 1998
url http://psasir.upm.edu.my/id/eprint/12028/1/GSM_1998_19.pdf
http://psasir.upm.edu.my/id/eprint/12028/
_version_ 1803336781521747968
score 13.211869

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