The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad

Investors of initial public offers (IPOs) rely on the prospectus for important information about the company. But the motivation of the issuers (original shareholders) for going public is unknown and hidden from the investing public, making the IPO investment a risky venture. Based on the Signalling...

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Main Authors:	Lin, Yong Tong, Ahmad, Rubi
Format:	Article
Language:	English
Published:	Penerbit UiTM (UiTM Press) 2018
Subjects:	Personnel management. Employment management
Online Access:	http://ir.uitm.edu.my/id/eprint/23514/ http://ir.uitm.edu.my/id/eprint/23514/1/AJ_LIN%20YONG%20TONG%20SMRJ%2018.pdf

id	uitm-23514
recordtype	eprints
spelling	uitm-235142019-03-19T01:18:52Z http://ir.uitm.edu.my/id/eprint/23514/ The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad Lin, Yong Tong Ahmad, Rubi Personnel management. Employment management Investors of initial public offers (IPOs) rely on the prospectus for important information about the company. But the motivation of the issuers (original shareholders) for going public is unknown and hidden from the investing public, making the IPO investment a risky venture. Based on the Signalling Theory, we postulate that the public issues (PI) and offer for sale (OFS) ratios to contain properties to signal the intention of the issuers at time of listing. Our samples are collected from the Bursa Malaysia from 2002 to 2008 and the performances are tracked till 2011. The regression results are consistent with the Signalling Theory which stipulates that when issuers sell down their stakes, it sends a gloomy signal, even though the offer of OFS does not cause any dilution to company’s value. In addition, small companies with high OFS ratio record weaker long-run performance than large companies. Penerbit UiTM (UiTM Press) 2018 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/23514/1/AJ_LIN%20YONG%20TONG%20SMRJ%2018.pdf Lin, Yong Tong and Ahmad, Rubi (2018) The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad. Social and Management Research Journal, 15 (2). pp. 145-166. 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	Personnel management. Employment management
spellingShingle	Personnel management. Employment management Lin, Yong Tong Ahmad, Rubi The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad
description	Investors of initial public offers (IPOs) rely on the prospectus for important information about the company. But the motivation of the issuers (original shareholders) for going public is unknown and hidden from the investing public, making the IPO investment a risky venture. Based on the Signalling Theory, we postulate that the public issues (PI) and offer for sale (OFS) ratios to contain properties to signal the intention of the issuers at time of listing. Our samples are collected from the Bursa Malaysia from 2002 to 2008 and the performances are tracked till 2011. The regression results are consistent with the Signalling Theory which stipulates that when issuers sell down their stakes, it sends a gloomy signal, even though the offer of OFS does not cause any dilution to company’s value. In addition, small companies with high OFS ratio record weaker long-run performance than large companies.
format	Article
author	Lin, Yong Tong Ahmad, Rubi
author_facet	Lin, Yong Tong Ahmad, Rubi
author_sort	Lin, Yong Tong
title	The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad
title_short	The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad
title_full	The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad
title_fullStr	The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad
title_full_unstemmed	The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad
title_sort	signalling value of public issue and offer for sale ratios on the performance of initial public offers / lin yong tong and rubi ahmad
publisher	Penerbit UiTM (UiTM Press)
publishDate	2018
url	http://ir.uitm.edu.my/id/eprint/23514/ http://ir.uitm.edu.my/id/eprint/23514/1/AJ_LIN%20YONG%20TONG%20SMRJ%2018.pdf
first_indexed	2023-09-18T23:10:50Z
last_indexed	2023-09-18T23:10:50Z
_version_	1777418791242694656

The signalling value of public issue and offer for sale ratios on the performance of initial public offers / Lin Yong Tong and Rubi Ahmad

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