Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks

Prior studies testing the relationship between initial public offering (IPO) returns and liquidity are mostly for the developed markets. The disperse ownership in the corporation and more well informed investors in the developed markets support their findings. On the other hand, the nature and behav...

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Main Authors:	Ramlee, Roslily, Ali, Ruhani
Format:	Article
Language:	English
Published:	Universiti Sains Malaysia 2012
Subjects:	HB Economic Theory
Online Access:	http://irep.iium.edu.my/29170/ http://irep.iium.edu.my/29170/1/LIQUIDITY%2C_INITIAL_PUBLIC_OFFERING_%28IPO%29_LONG-TERM_RETURN.pdf

id	iium-29170
recordtype	eprints
spelling	iium-291702013-06-11T04:04:25Z http://irep.iium.edu.my/29170/ Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks Ramlee, Roslily Ali, Ruhani HB Economic Theory Prior studies testing the relationship between initial public offering (IPO) returns and liquidity are mostly for the developed markets. The disperse ownership in the corporation and more well informed investors in the developed markets support their findings. On the other hand, the nature and behaviour of emerging stock markets such as Malaysia differ from the developed markets. The concentrated ownership in the corporations partly due to government ownership to a certain extent could provide different views on the relationship between liquidity and return. Using 283 samples of IPO stocks listed on Main Board and Second Board of Bursa Malaysia from 1998 to 2008, the study examines the relationship between liquidity and IPO long-term return and the moderating effect of government shareholdings on the relationship between the two variables. The results showed one proxy of liquidity that is average monthly turnover as able to explain the market-adjusted long-term return of IPO stocks when equally weighted returns are calculated. Further, the government shareholdings in the IPO stocks positively moderate the relation between liquidity and long-term return. Universiti Sains Malaysia 2012 Article PeerReviewed application/pdf en http://irep.iium.edu.my/29170/1/LIQUIDITY%2C_INITIAL_PUBLIC_OFFERING_%28IPO%29_LONG-TERM_RETURN.pdf Ramlee, Roslily and Ali, Ruhani (2012) Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks. Asian Academy of Management Journal of Accounting and Finance, 8 (Supp.1). pp. 39-66. ISSN 1823-4992 (P) 1985-8299 (O)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB Economic Theory
spellingShingle	HB Economic Theory Ramlee, Roslily Ali, Ruhani Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks
description	Prior studies testing the relationship between initial public offering (IPO) returns and liquidity are mostly for the developed markets. The disperse ownership in the corporation and more well informed investors in the developed markets support their findings. On the other hand, the nature and behaviour of emerging stock markets such as Malaysia differ from the developed markets. The concentrated ownership in the corporations partly due to government ownership to a certain extent could provide different views on the relationship between liquidity and return. Using 283 samples of IPO stocks listed on Main Board and Second Board of Bursa Malaysia from 1998 to 2008, the study examines the relationship between liquidity and IPO long-term return and the moderating effect of government shareholdings on the relationship between the two variables. The results showed one proxy of liquidity that is average monthly turnover as able to explain the market-adjusted long-term return of IPO stocks when equally weighted returns are calculated. Further, the government shareholdings in the IPO stocks positively moderate the relation between liquidity and long-term return.
format	Article
author	Ramlee, Roslily Ali, Ruhani
author_facet	Ramlee, Roslily Ali, Ruhani
author_sort	Ramlee, Roslily
title	Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks
title_short	Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks
title_full	Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks
title_fullStr	Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks
title_full_unstemmed	Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks
title_sort	liquidity, initial public offering (ipo) long-term return and government ownership: evidence from bursa malaysia ipo stocks
publisher	Universiti Sains Malaysia
publishDate	2012
url	http://irep.iium.edu.my/29170/ http://irep.iium.edu.my/29170/1/LIQUIDITY%2C_INITIAL_PUBLIC_OFFERING_%28IPO%29_LONG-TERM_RETURN.pdf
first_indexed	2023-09-18T20:42:48Z
last_indexed	2023-09-18T20:42:48Z
_version_	1777409477401640960

Liquidity, initial public offering (ipo) long-term return and government ownership: Evidence from bursa malaysia ipo stocks

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