Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong

This paper investigated the impact of behavioural biases on the initial returns ofMalaysian IPOs from the perspectives of divergence of opinion and representative heuristics theories. The initial returns were calculated using 142 IPO samples listed on the Main Board of Bursa Malaysia (formerly know...

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Main Author:	Fen, Nee Chong
Format:	Article
Language:	English
Published:	Research Management Institute (RMI) 2011
Subjects:	Malaysia
Online Access:	http://ir.uitm.edu.my/id/eprint/13091/ http://ir.uitm.edu.my/id/eprint/13091/1/AJ_FEN%20NEE%20CHONG%20SMRJ%2011%201.pdf

id	uitm-13091
recordtype	eprints
spelling	uitm-130912016-06-30T06:01:20Z http://ir.uitm.edu.my/id/eprint/13091/ Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong Fen, Nee Chong Malaysia This paper investigated the impact of behavioural biases on the initial returns ofMalaysian IPOs from the perspectives of divergence of opinion and representative heuristics theories. The initial returns were calculated using 142 IPO samples listed on the Main Board of Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). In addition to the behavioural proxies, ex-ante variables were included as control variables in the models for analysis. The findings showed support for initial underpricing of66.51%. Behavioural biases, divergence ofopinion and representative heuristics, were found to have significant explanatory powers over initial returns. The findings fit well with the profile of the Malaysian market whereby the majority of the investors are individuals who are not well-informed and have an emerging market status. Research Management Institute (RMI) 2011 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/13091/1/AJ_FEN%20NEE%20CHONG%20SMRJ%2011%201.pdf Fen, Nee Chong (2011) Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong. Social and Management Research Journal, 8 (1). pp. 23-36. ISSN 1675-7017
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Malaysia
spellingShingle	Malaysia Fen, Nee Chong Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong
description	This paper investigated the impact of behavioural biases on the initial returns ofMalaysian IPOs from the perspectives of divergence of opinion and representative heuristics theories. The initial returns were calculated using 142 IPO samples listed on the Main Board of Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). In addition to the behavioural proxies, ex-ante variables were included as control variables in the models for analysis. The findings showed support for initial underpricing of66.51%. Behavioural biases, divergence ofopinion and representative heuristics, were found to have significant explanatory powers over initial returns. The findings fit well with the profile of the Malaysian market whereby the majority of the investors are individuals who are not well-informed and have an emerging market status.
format	Article
author	Fen, Nee Chong
author_facet	Fen, Nee Chong
author_sort	Fen, Nee Chong
title	Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong
title_short	Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong
title_full	Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong
title_fullStr	Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong
title_full_unstemmed	Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong
title_sort	can behavioural theories explain the initial return of malaysian ipos? / fen nee chong
publisher	Research Management Institute (RMI)
publishDate	2011
url	http://ir.uitm.edu.my/id/eprint/13091/ http://ir.uitm.edu.my/id/eprint/13091/1/AJ_FEN%20NEE%20CHONG%20SMRJ%2011%201.pdf
first_indexed	2023-09-18T22:49:51Z
last_indexed	2023-09-18T22:49:51Z
_version_	1777417470640914432

Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong

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