scholarly journals Evaluation of Long Term Performance for Initial Public Offerings (IPO) in Malaysia: A Fama-French Method

2019 ◽  
Vol 7 (01) ◽  
Author(s):  
Nashirah Abu Bakar ◽  
Sofian Rosbi
Keyword(s):  
Initial Public Offerings ◽  
Risk Premium ◽  
Stock Price ◽  
Stock Exchange ◽  
Expected Return ◽  
Public Offerings ◽  
Market Risk Premium ◽  
Thomson Reuters ◽  
Long Term Performance ◽  
Term Performance

The objective of this study is to evaluate performance of initial public offerings for 16 sharia compliant companies listed on the Malaysia Stock Exchange. Data of stock price are collected from Thomson Reuters Datastream for 36 months starting from January 2016 until December 2018. The method implemented is using Fama-French approach that evaluates expected return with three factors namely Market Risk Premium (MRP), Small Minus Big (SMB) and High Minus Low (HML). Result shows the abnormal return for 36 months is -3.399 which indicates negative value. The negative value of y-intercept gives interpretation that market (FTSE Bursa Malaysia KLCI) performed better than portfolio. The findings of this study will help investors to understand the financial dynamic behavior in Malaysia Stock Exchange. In addition, it will help investors to select appropriate financial assets for investment portfolio in gaining better return.

scholarly journals KINERJA JANGKA PENDEK DAN JANGKA PANJANG SAHAM PERUSAHAAN IPO DI BURSA EFEK INDONESIA

2019 ◽  
Vol 2 (2) ◽  
pp. 437
Author(s):  
Andrew Budiman
Keyword(s):  
Initial Public Offerings ◽  
Stock Price ◽  
Secondary Market ◽  
Public Offerings ◽  
Independent Variables ◽  
Long Run ◽  
Underwriter Reputation ◽  
Long Term Performance ◽  
Term Performance ◽  
Auditor Reputation

The objectives of this research is to examine the effect of qualitative and quantitative factors to underpricing ( Y1 ), long-run underperformance ( Y2 ), and underpricing effect to long-run underperformance ( Y3 ) with ROA, DER, ROE, Age, Size, Underwriter Reputation, Auditor Reputation and Gross Proceeds as independent variables. Initial Public Offerings ( IPO ) is one of alternatives for companies to get fund from external sources in fulfilling it needs. Three phenomenons related with IPO’s are underpricing, hot-issue market and long-run underperformance. The most frequently happened phenomenon is underpricing which is a phenomenons marked by lower offering price compared to 1st day closing price. The second phenomenon, hot-issue market, is marked by abnormal higher IPO’s frequency, high abnormal underpricing rate, and stock’s oversubscription. Under this condition  investors become more optimist and become an advantage for companies to get external funds through IPO’s, but in secondary market stock price will be corrected naturally and it’s long term performance oftenly worst than non-IPO’s company. This is what so called as long-run underperformance. This study use underpriced IPO’s stocks in Bursa Efek Indonesia for period 2012 to 2015 as sample and use e-views 7 to analyze it. The result shows that only DER don’t have effect significant to Y1, only Auditor Reputation and Gross Proceeds variables don’t have significant effect to Y2 and finally  Y1 have significant effect to Y3. R-squared shows for Y1,Y2 and Y3 indicates that still many independent variables gives significant effects to Y1 and Y2. 

scholarly journals Optimisme Investor dan Kinerja Jangka Panjang Saham Pasca Initial Public Offerings yang Listing Di Bursa Efek Indonesia

2020 ◽  
Vol 4 (1) ◽  
pp. 43-54
Author(s):  
Mu’minatus Sholichah
Keyword(s):  
Initial Public Offerings ◽  
Capital Market ◽  
Stock Exchange ◽  
Company Size ◽  
Public Offerings ◽  
Long Period ◽  
Stock Investment ◽  
Long Term Performance ◽  
Term Performance

This study discusses and analyzes from the perspective of investor optimism and long-term performance after the IPO in the Indonesian capital market. Observations will be made regarding the influence of investors on the increase in the length of shares after the IPO with control variables of company size, company age, offer size, the achievement of underwriters, profitability on the Indonesia Stock Exchange. This study uses data from 2004-2017, with 194 IPO companies from 2004-2015 in the Indonesian capital market. Testing is done by using two drunken linear regression. The results of this study indicate that investors in the Indonesian capital market not only consider irrational factors but also consider rational factors about the company's character in making decisions to buy IPO shares. The characteristics of the company include the size of the company and the size of the stock offering. This study provides benefits for IPO stock investors who rely on the benefits of initial stock investment in a relatively long period of time so as not to suffer losses

scholarly journals Long Term Performance of Islamic Share Price for Initial Public Offerings (IPOs) in Malaysia: Evidence from Sharia-Compliant Companies Listed on the Malaysian Stock Exchange (2006-2010)

2014 ◽  
Vol 2 (6) ◽  
pp. 43-57 ◽  
Author(s):  
Nashirah Binti Abu Bakar ◽  
Sofian Rosbi
Keyword(s):  
Initial Public Offerings ◽  
Service Industry ◽  
Stock Exchange ◽  
Share Price ◽  
Equal Weight ◽  
Public Offerings ◽  
Long Term Performance ◽  
Term Performance ◽  
Product Industry

The objective of this study is to investigate the long-term (one to three year) performance of initial public offerings (IPOs) for sharia-compliant companies listed on the Malaysian Stock Exchange (MSE) for the period from 2006 till 2010. This study examines why some IPOs companies have a positive, and some IPOs companies have a negative long-term cumulative abnormal return (CAR). KLCI index is used as a benchmark for measuring long-term performance of IPOs for sharia-compliant companies. The empirical results show that the long-term performances for sharia-compliant companies are performed better (16.81 percent) than their benchmark for CAR equal-weight and the result for CAR value-weight show a slightly outperformed their benchmark (-0.07 percent). The results also indicate that CAR for equal-weight and value-weight of IPOs for sharia-compliant companies are significantly higher over performing by 14.58 percent and 4.11 percent respectively in the year 2006. While the results in 2007 (-1.34 percent) and 2008 (-3.43 percent) for value–weight are underperformed. This study also found that the underpricing, offer price, offer size, market type, trading/service industry, consumer product industry, property industry and REIT industry were statistically significant.

scholarly journals Introduction

2018 ◽  
pp. xiv-24
Author(s):  
Douglas Cumming ◽  
Sofia Johan
Keyword(s):  
Initial Public Offerings ◽  
Service Providers ◽  
Investment Banks ◽  
Public Offerings ◽  
Reverse Mergers ◽  
Short And Long Term ◽  
Long Term Performance ◽  
Term Performance ◽  
Special Purpose Acquisition Companies

The worldwide landscape for raising firm capital from Initial Public Offerings (IPOs) has significantly evolved over the last few decades. This introductory chapter reviews more recent research on initial public offerings. The Oxford Handbook of IPOs comprises twenty-nine chapters from authors around the world. The chapters describe the economics of going public, short- and long-term performance of IPOs, regulation of IPOs, IPOs versus acquisitions, reverse mergers, special purpose acquisition companies, service providers including investment banks and auditors, venture capital funds, international differences in IPOs, and crowdfunding. The Introduction summarizes the chapters that appear in the Handbook and highlight research trends on topic.

scholarly journals INVESTIGATION TOWARDS THE LONG-RUN PERFORMANCE OF INITIAL PUBLIC OFFERINGS: EVIDENCE FROM INDONESIAN CAPITAL MARKET

2010 ◽  
Vol 2 (2) ◽  
pp. 100-125
Author(s):  
Lioniva Emasari ◽  
Dewi Tamara
Keyword(s):  
Initial Public Offerings ◽  
Abnormal Return ◽  
Mining Industry ◽  
Cumulative Abnormal Return ◽  
Public Offerings ◽  
Basic Industry ◽  
Long Run ◽  
Long Term Performance ◽  
Term Performance

We study the long-term performance of IPO share issued in Indonesia during the 1996-2001 periods. The IPOs in this period are mostly concentrated in Finance, Trade, Property and Basic Industry & Chemicals. The cumulative abnormal return (CAR) and buy-and-hold abnormal return (BHAR) in the third year are 15.83% and negative 68.02%, respectively. The CAR and BHAR in the fifth year are negative 1% and negative 139.7%, respectively. The highest CAR for 3 and 5 years are mining industry, with 289.29% and 226.80%, respectively. The lowest CAR for third year is trade, service & investment industry, with negative 59.36% and fifth year is agriculture with negative 59.72%. The lowest BHAR for third and fifth year is trade, service and investment industry with negative 113.01% and negative 230.99 respectively. The long-run performance using cumulative abnormal return is similar with the market and cannot outperform the market.  

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