Share price and trading volume reactions to lockup expiration in Malaysian IPOs
This paper examines the market reaction at the expiration of initial public offering (IPO) lockup on share prices and trading volume.The sample consists of 292 IPOs listed on Bursa Malaysia between May 2003 and December 2012.IPO lockup in Malaysia is mandatory as opposed to voluntary where it is n...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2016
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| Online Access: | https://repo.uum.edu.my/id/eprint/19653/1/IJEFI%20%20%206%203%202016%20958-962.pdf |
| _version_ | 1803627755206606848 |
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| author | Mohamed Arshad, Shamsul Bahrain Taufil Mohd, Kamarun Nisham Ahmad Zaluki, Nurwati Ashikkin |
| author_facet | Mohamed Arshad, Shamsul Bahrain Taufil Mohd, Kamarun Nisham Ahmad Zaluki, Nurwati Ashikkin |
| author_sort | Mohamed Arshad, Shamsul Bahrain |
| collection | UUM |
| description | This paper examines the market reaction at the expiration of initial public offering (IPO) lockup on share prices and trading volume.The sample
consists of 292 IPOs listed on Bursa Malaysia between May 2003 and December 2012.IPO lockup in Malaysia is mandatory as opposed to voluntary
where it is negotiated between firms and underwriters.Using the market model event study method, the result shows a significant negative abnormal return at the expiration of the lockup period.Thus, the study provides evidence that contradicts the semi-strong form of the efficient market hypothesis (EMH).According to EMH, the expiration of the lockup period which is public knowledge should not be accompanied with a significant abnormal return.In addition, the study also shows the existence of higher abnormal trading volume at lockup expiration. |
| first_indexed | 2024-07-04T06:11:06Z |
| format | Article |
| id | uum-19653 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:11:06Z |
| publishDate | 2016 |
| publisher | EconJournals |
| record_format | dspace |
| spelling | uum-196532020-11-04T03:01:35Z https://repo.uum.edu.my/id/eprint/19653/ Share price and trading volume reactions to lockup expiration in Malaysian IPOs Mohamed Arshad, Shamsul Bahrain Taufil Mohd, Kamarun Nisham Ahmad Zaluki, Nurwati Ashikkin HG Finance This paper examines the market reaction at the expiration of initial public offering (IPO) lockup on share prices and trading volume.The sample consists of 292 IPOs listed on Bursa Malaysia between May 2003 and December 2012.IPO lockup in Malaysia is mandatory as opposed to voluntary where it is negotiated between firms and underwriters.Using the market model event study method, the result shows a significant negative abnormal return at the expiration of the lockup period.Thus, the study provides evidence that contradicts the semi-strong form of the efficient market hypothesis (EMH).According to EMH, the expiration of the lockup period which is public knowledge should not be accompanied with a significant abnormal return.In addition, the study also shows the existence of higher abnormal trading volume at lockup expiration. EconJournals 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/19653/1/IJEFI%20%20%206%203%202016%20958-962.pdf Mohamed Arshad, Shamsul Bahrain and Taufil Mohd, Kamarun Nisham and Ahmad Zaluki, Nurwati Ashikkin (2016) Share price and trading volume reactions to lockup expiration in Malaysian IPOs. International Journal of Economics and Financial Issues, 6 (3). pp. 958-962. ISSN 2146-4138 http://www.econjournals.com/index.php/ijefi/article/view/2455 |
| spellingShingle | HG Finance Mohamed Arshad, Shamsul Bahrain Taufil Mohd, Kamarun Nisham Ahmad Zaluki, Nurwati Ashikkin Share price and trading volume reactions to lockup expiration in Malaysian IPOs |
| title | Share price and trading volume reactions to lockup expiration in Malaysian IPOs |
| title_full | Share price and trading volume reactions to lockup expiration in Malaysian IPOs |
| title_fullStr | Share price and trading volume reactions to lockup expiration in Malaysian IPOs |
| title_full_unstemmed | Share price and trading volume reactions to lockup expiration in Malaysian IPOs |
| title_short | Share price and trading volume reactions to lockup expiration in Malaysian IPOs |
| title_sort | share price and trading volume reactions to lockup expiration in malaysian ipos |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/19653/1/IJEFI%20%20%206%203%202016%20958-962.pdf |
| work_keys_str_mv | AT mohamedarshadshamsulbahrain sharepriceandtradingvolumereactionstolockupexpirationinmalaysianipos AT taufilmohdkamarunnisham sharepriceandtradingvolumereactionstolockupexpirationinmalaysianipos AT ahmadzalukinurwatiashikkin sharepriceandtradingvolumereactionstolockupexpirationinmalaysianipos |