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Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203)

This study aims to examine the changes in equity guidelines and initial returns in the Malaysian initial public offering (IPO) market. The study uses cross-sectional data over 16 years from 2000 to 2016. It uses ordinary least squares for the baseline model and incorporates an interaction term, quan...

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Main Authors: Mohd Rashid, Rasidah, Abdul Rahim, Ruzita, Hwei, Khaw Lee, Tajuddin, Ahmad Hakimi, Che Yahya, Norliza
Format: Monograph
Language:English
Published: UUM 2021
Subjects:
QA Mathematics
Online Access:https://repo.uum.edu.my/id/eprint/31521/1/14203.pdf
https://repo.uum.edu.my/id/eprint/31521/
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spelling my.uum.repo.315212024-11-18T09:43:20Z https://repo.uum.edu.my/id/eprint/31521/ Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203) Mohd Rashid, Rasidah Abdul Rahim, Ruzita Hwei, Khaw Lee Tajuddin, Ahmad Hakimi Che Yahya, Norliza QA Mathematics This study aims to examine the changes in equity guidelines and initial returns in the Malaysian initial public offering (IPO) market. The study uses cross-sectional data over 16 years from 2000 to 2016. It uses ordinary least squares for the baseline model and incorporates an interaction term, quantile regression, quadratic term, break test and logit regression model for further analysis. The results support the propositions that lockup provisions signal commitment and demand increase initial returns. The revision in the Bumiputera equity requirement means that issuers no longer need to discount offer prices to entice investors. Finally, the revised Sharīʿah compliance screening requirement ensures that stocks are better in quality and more transparent, leading to a higher demand that drives prices upwards. This study’s findings provide insights into how issuers can secure good subscriptions. Besides, policymakers should ensure that firms disclose the required information in their prospectuses. This study adds to the body of knowledge on whether and how the regulatory requirements affect IPO initial returns UUM 2021 Monograph NonPeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/31521/1/14203.pdf Mohd Rashid, Rasidah and Abdul Rahim, Ruzita and Hwei, Khaw Lee and Tajuddin, Ahmad Hakimi and Che Yahya, Norliza (2021) Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203). Technical Report. UUM. (Submitted)
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic QA Mathematics
spellingShingle QA Mathematics
Mohd Rashid, Rasidah
Abdul Rahim, Ruzita
Hwei, Khaw Lee
Tajuddin, Ahmad Hakimi
Che Yahya, Norliza
Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203)
description This study aims to examine the changes in equity guidelines and initial returns in the Malaysian initial public offering (IPO) market. The study uses cross-sectional data over 16 years from 2000 to 2016. It uses ordinary least squares for the baseline model and incorporates an interaction term, quantile regression, quadratic term, break test and logit regression model for further analysis. The results support the propositions that lockup provisions signal commitment and demand increase initial returns. The revision in the Bumiputera equity requirement means that issuers no longer need to discount offer prices to entice investors. Finally, the revised Sharīʿah compliance screening requirement ensures that stocks are better in quality and more transparent, leading to a higher demand that drives prices upwards. This study’s findings provide insights into how issuers can secure good subscriptions. Besides, policymakers should ensure that firms disclose the required information in their prospectuses. This study adds to the body of knowledge on whether and how the regulatory requirements affect IPO initial returns
format Monograph
author Mohd Rashid, Rasidah
Abdul Rahim, Ruzita
Hwei, Khaw Lee
Tajuddin, Ahmad Hakimi
Che Yahya, Norliza
author_facet Mohd Rashid, Rasidah
Abdul Rahim, Ruzita
Hwei, Khaw Lee
Tajuddin, Ahmad Hakimi
Che Yahya, Norliza
author_sort Mohd Rashid, Rasidah
title Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203)
title_short Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203)
title_full Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203)
title_fullStr Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203)
title_full_unstemmed Modelling Framework of Regulatory Changes to Improve Efficiency of Malaysian IPO Market (S/O 14203)
title_sort modelling framework of regulatory changes to improve efficiency of malaysian ipo market (s/o 14203)
publisher UUM
publishDate 2021
url https://repo.uum.edu.my/id/eprint/31521/1/14203.pdf
https://repo.uum.edu.my/id/eprint/31521/
_version_ 1816134266355974144
score 13.223943

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