Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009
This papaer examines the winner's curse hypothesis and the bandwagon effect in initial public offerings (IPOS), using malaysian IPO data from January 2001 to December 2009. The average initial return (offer-to-close) for the 160 Malaysian private placement IPOS is 18.51 percent as opposed to th...
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| Language: | en |
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Penerbit Universiti Kebangsaan Malaysia
2011
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| Online Access: | http://journalarticle.ukm.my/2099/1/jurus_32-03-lock.pdf http://journalarticle.ukm.my/2099/ http://pkukmweb.ukm.my/~penerbit/jurus.htm |
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| _version_ | 1831354439531757568 |
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| author | Othman Yong, |
| author_facet | Othman Yong, |
| author_sort | Othman Yong, |
| building | Tun Sri Lanang Library |
| collection | Institutional Repository |
| content_provider | Universiti Kebangsaan Malaysia |
| content_source | UKM Journal Article Repository |
| continent | Asia |
| country | Malaysia |
| description | This papaer examines the winner's curse hypothesis and the bandwagon effect in initial public offerings (IPOS), using malaysian IPO data from January 2001 to December 2009. The average initial return (offer-to-close) for the 160 Malaysian private placement IPOS is 18.51 percent as opposed to the average initial return (offer-to-lose) of 28.84 percent for the 210 non-private placement IPOS, which gives support to the winner's curse hypothesis , where uninformed investors (using private placement IPOS as the proxy) demand a higher initial return in the absense of informed investors (using private placement IPOS as the proxy).The study also finds that the present of a large number of informed investors in an IPO exercise, as compared to uninformed investors, brings with it an increased interest, or the bandwagon effect, in that particular stock, which results in higher initial return. |
| format | Article |
| id | my-ukm.journal-2099 |
| institution | Universiti Kebangsaan Malaysia |
| language | en |
| publishDate | 2011 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | eprints |
| spelling | my-ukm.journal-20992011-06-30T01:01:45Z http://journalarticle.ukm.my/2099/ Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009 Othman Yong, This papaer examines the winner's curse hypothesis and the bandwagon effect in initial public offerings (IPOS), using malaysian IPO data from January 2001 to December 2009. The average initial return (offer-to-close) for the 160 Malaysian private placement IPOS is 18.51 percent as opposed to the average initial return (offer-to-lose) of 28.84 percent for the 210 non-private placement IPOS, which gives support to the winner's curse hypothesis , where uninformed investors (using private placement IPOS as the proxy) demand a higher initial return in the absense of informed investors (using private placement IPOS as the proxy).The study also finds that the present of a large number of informed investors in an IPO exercise, as compared to uninformed investors, brings with it an increased interest, or the bandwagon effect, in that particular stock, which results in higher initial return. Penerbit Universiti Kebangsaan Malaysia 2011-07 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/2099/1/jurus_32-03-lock.pdf Othman Yong, (2011) Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009. Jurnal Pengurusan, 32 . pp. 21-26. ISSN 0127-2713 http://pkukmweb.ukm.my/~penerbit/jurus.htm |
| spellingShingle | Othman Yong, Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009 |
| title | Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009 |
| title_full | Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009 |
| title_fullStr | Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009 |
| title_full_unstemmed | Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009 |
| title_short | Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009 |
| title_sort | winner's curse and bandwagon effect in malaysian ipos: evidence from 2001-2009 |
| url | http://journalarticle.ukm.my/2099/1/jurus_32-03-lock.pdf http://journalarticle.ukm.my/2099/ http://pkukmweb.ukm.my/~penerbit/jurus.htm |
| url_provider | http://journalarticle.ukm.my/ |