Does equity or bond offerings in Malaysia matter to share price performance?
This study examines the stock price reaction to the announcement of equity or bond issuance in Malaysia (2001 to 2011). Results reveal significant effect of equity issuance on the share price but insignificant effect of bond issuance on the share price. It suggests that the announcement of equity is...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2015
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| Online Access: | http://psasir.upm.edu.my/id/eprint/75489/1/AAMC2015-4.pdf |
| _version_ | 1825950476395347968 |
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| author | Tern, Poh Joo Lee, Hui Shan Har, Wai Mun Cheng, Fan Fah |
| author_facet | Tern, Poh Joo Lee, Hui Shan Har, Wai Mun Cheng, Fan Fah |
| author_sort | Tern, Poh Joo |
| collection | UPM |
| description | This study examines the stock price reaction to the announcement of equity or bond issuance in Malaysia (2001 to 2011). Results reveal significant effect of equity issuance on the share price but insignificant effect of bond issuance on the share price. It suggests that the announcement of equity issuance conveys positive news to the investors as they perceive that the company requires more capital to finance the new huge project which could result in higher positive net present value. This result proposes to a large extend that equity market in Malaysia is semi-strong form efficient market hypothesis, there should be more prudent policies by the regulator to ensure the transparency in Malaysia’s equity market. This research also analyses the relationship between CAR with run up, issue size, leverage and financial slack. However, there is insignificant effect with the model inclusive of run up, issue size, leverage and financial slack towards CAR on equity or bond announcement. |
| first_indexed | 2024-03-06T10:15:11Z |
| format | Conference or Workshop Item |
| id | upm.eprints-75489 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T10:15:11Z |
| publishDate | 2015 |
| record_format | dspace |
| spelling | upm.eprints-754892019-10-07T07:15:26Z http://psasir.upm.edu.my/id/eprint/75489/ Does equity or bond offerings in Malaysia matter to share price performance? Tern, Poh Joo Lee, Hui Shan Har, Wai Mun Cheng, Fan Fah This study examines the stock price reaction to the announcement of equity or bond issuance in Malaysia (2001 to 2011). Results reveal significant effect of equity issuance on the share price but insignificant effect of bond issuance on the share price. It suggests that the announcement of equity issuance conveys positive news to the investors as they perceive that the company requires more capital to finance the new huge project which could result in higher positive net present value. This result proposes to a large extend that equity market in Malaysia is semi-strong form efficient market hypothesis, there should be more prudent policies by the regulator to ensure the transparency in Malaysia’s equity market. This research also analyses the relationship between CAR with run up, issue size, leverage and financial slack. However, there is insignificant effect with the model inclusive of run up, issue size, leverage and financial slack towards CAR on equity or bond announcement. 2015 Conference or Workshop Item PeerReviewed text en http://psasir.upm.edu.my/id/eprint/75489/1/AAMC2015-4.pdf Tern, Poh Joo and Lee, Hui Shan and Har, Wai Mun and Cheng, Fan Fah (2015) Does equity or bond offerings in Malaysia matter to share price performance? In: 11th Asian Academy of Management International Conference 2015 (AAMC 2015), 2-4 Oct. 2015, Penang, Malaysia. (pp. 879-891). |
| spellingShingle | Tern, Poh Joo Lee, Hui Shan Har, Wai Mun Cheng, Fan Fah Does equity or bond offerings in Malaysia matter to share price performance? |
| title | Does equity or bond offerings in Malaysia matter to share price performance? |
| title_full | Does equity or bond offerings in Malaysia matter to share price performance? |
| title_fullStr | Does equity or bond offerings in Malaysia matter to share price performance? |
| title_full_unstemmed | Does equity or bond offerings in Malaysia matter to share price performance? |
| title_short | Does equity or bond offerings in Malaysia matter to share price performance? |
| title_sort | does equity or bond offerings in malaysia matter to share price performance |
| url | http://psasir.upm.edu.my/id/eprint/75489/1/AAMC2015-4.pdf |
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