Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs
This paper examines the issue of speculative bubble in the pricing of Malaysian IPOs. In a fixed-price offering, one would expect the post-listing price movement to behave in accordance to a speculative bubble, where the IPO's price is pushed up high above its true value, and later stabilize...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2014
|
| Online Access: | http://journalarticle.ukm.my/7804/1/00000003.PDF |
| _version_ | 1796930628488265728 |
|---|---|
| author | Othrnan Yong, |
| author_facet | Othrnan Yong, |
| author_sort | Othrnan Yong, |
| collection | UKM |
| description | This paper examines the issue of speculative bubble in the pricing of Malaysian IPOs. In a
fixed-price offering, one would expect the post-listing price movement to behave in
accordance to a speculative bubble, where the IPO's price is pushed up high above its
true value, and later stabilizes as the bubble bursts, especially when there is no stabilization
activity taking place. One would also expect that this speculative bubble will be
predominant in IPOs that have high pre-listing investor demand, and in IPOs that are
categorized as hot issues. In general, the Malaysian fixed-price IPOs do not exhibit the
characteristics of speculative bubble. With high demand POs and hot issues IPOs, there
is a significant jump in price during the first day of trading, but later the prices starts to
drop gradually from their peak to their "true" value; there is no sudden drop in price as in
the case of a speculative bubble. Prices seem to stabilize almost immediately in the aftermarket. |
| first_indexed | 2024-03-06T04:05:54Z |
| format | Article |
| id | ukm.eprints-7804 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:05:54Z |
| publishDate | 2014 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-78042016-12-14T06:45:15Z http://journalarticle.ukm.my/7804/ Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs Othrnan Yong, This paper examines the issue of speculative bubble in the pricing of Malaysian IPOs. In a fixed-price offering, one would expect the post-listing price movement to behave in accordance to a speculative bubble, where the IPO's price is pushed up high above its true value, and later stabilizes as the bubble bursts, especially when there is no stabilization activity taking place. One would also expect that this speculative bubble will be predominant in IPOs that have high pre-listing investor demand, and in IPOs that are categorized as hot issues. In general, the Malaysian fixed-price IPOs do not exhibit the characteristics of speculative bubble. With high demand POs and hot issues IPOs, there is a significant jump in price during the first day of trading, but later the prices starts to drop gradually from their peak to their "true" value; there is no sudden drop in price as in the case of a speculative bubble. Prices seem to stabilize almost immediately in the aftermarket. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7804/1/00000003.PDF Othrnan Yong, (2014) Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs. Journal of Finance & Financial Services, 1 (1). pp. 45-54. ISSN 2289-6597 - |
| spellingShingle | Othrnan Yong, Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs |
| title | Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs |
| title_full | Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs |
| title_fullStr | Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs |
| title_full_unstemmed | Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs |
| title_short | Speculative bubble in IPOs: evidence from Malaysian Fixed-Price IPOs |
| title_sort | speculative bubble in ipos evidence from malaysian fixed price ipos |
| url | http://journalarticle.ukm.my/7804/1/00000003.PDF |
| work_keys_str_mv | AT othrnanyong speculativebubbleiniposevidencefrommalaysianfixedpriceipos |