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Does equity or bond offerings in Malaysia matter to share price performance?

This study examines the stock price reaction to the announcement of equity or bond issuance in Malaysia (2001 to 2011). Results reveal significant effect of equity issuance on the share price but insignificant effect of bond issuance on the share price. It suggests that the announcement of equity is...

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Main Authors: Tern, Poh Joo, Lee, Hui Shan, Har, Wai Mun, Cheng, Fan Fah
Format: Conference or Workshop Item
Language:English
Published: 2015
Online Access:http://psasir.upm.edu.my/id/eprint/75489/1/AAMC2015-4.pdf
http://psasir.upm.edu.my/id/eprint/75489/
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spelling my.upm.eprints.754892019-10-07T07:15:26Z http://psasir.upm.edu.my/id/eprint/75489/ Does equity or bond offerings in Malaysia matter to share price performance? Tern, Poh Joo Lee, Hui Shan Har, Wai Mun Cheng, Fan Fah This study examines the stock price reaction to the announcement of equity or bond issuance in Malaysia (2001 to 2011). Results reveal significant effect of equity issuance on the share price but insignificant effect of bond issuance on the share price. It suggests that the announcement of equity issuance conveys positive news to the investors as they perceive that the company requires more capital to finance the new huge project which could result in higher positive net present value. This result proposes to a large extend that equity market in Malaysia is semi-strong form efficient market hypothesis, there should be more prudent policies by the regulator to ensure the transparency in Malaysia’s equity market. This research also analyses the relationship between CAR with run up, issue size, leverage and financial slack. However, there is insignificant effect with the model inclusive of run up, issue size, leverage and financial slack towards CAR on equity or bond announcement. 2015 Conference or Workshop Item PeerReviewed text en http://psasir.upm.edu.my/id/eprint/75489/1/AAMC2015-4.pdf Tern, Poh Joo and Lee, Hui Shan and Har, Wai Mun and Cheng, Fan Fah (2015) Does equity or bond offerings in Malaysia matter to share price performance? In: 11th Asian Academy of Management International Conference 2015 (AAMC 2015), 2-4 Oct. 2015, Penang, Malaysia. (pp. 879-891).
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
description This study examines the stock price reaction to the announcement of equity or bond issuance in Malaysia (2001 to 2011). Results reveal significant effect of equity issuance on the share price but insignificant effect of bond issuance on the share price. It suggests that the announcement of equity issuance conveys positive news to the investors as they perceive that the company requires more capital to finance the new huge project which could result in higher positive net present value. This result proposes to a large extend that equity market in Malaysia is semi-strong form efficient market hypothesis, there should be more prudent policies by the regulator to ensure the transparency in Malaysia’s equity market. This research also analyses the relationship between CAR with run up, issue size, leverage and financial slack. However, there is insignificant effect with the model inclusive of run up, issue size, leverage and financial slack towards CAR on equity or bond announcement.
format Conference or Workshop Item
author Tern, Poh Joo
Lee, Hui Shan
Har, Wai Mun
Cheng, Fan Fah
spellingShingle Tern, Poh Joo
Lee, Hui Shan
Har, Wai Mun
Cheng, Fan Fah
Does equity or bond offerings in Malaysia matter to share price performance?
author_facet Tern, Poh Joo
Lee, Hui Shan
Har, Wai Mun
Cheng, Fan Fah
author_sort Tern, Poh Joo
title Does equity or bond offerings in Malaysia matter to share price performance?
title_short Does equity or bond offerings in Malaysia matter to share price performance?
title_full Does equity or bond offerings in Malaysia matter to share price performance?
title_fullStr Does equity or bond offerings in Malaysia matter to share price performance?
title_full_unstemmed Does equity or bond offerings in Malaysia matter to share price performance?
title_sort does equity or bond offerings in malaysia matter to share price performance?
publishDate 2015
url http://psasir.upm.edu.my/id/eprint/75489/1/AAMC2015-4.pdf
http://psasir.upm.edu.my/id/eprint/75489/
_version_ 1648738229037301760
score 13.211869

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