Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry
This paper explores the attentiveness of retail investors, and examines share price impact and change in regulation at the expiration of lockup period. Quantitative research method using both primary and secondary data is employed, respectively. The explorative study is derived from a self-administe...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Serials Publications Pvt. Ltd.
2017
|
| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/24250/1/IJER%2014%2816%29%202017%20225-234.pdf |
| _version_ | 1803628689037983744 |
|---|---|
| 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 explores the attentiveness of retail investors, and examines share price impact and change in regulation at the expiration of lockup period. Quantitative research method using both primary and secondary data is employed, respectively. The explorative study is derived from a self-administered survey questionnaire using 157 respondents who are clients of the stock broking companies in Malaysia. The survey is conducted in the northern states of Malaysia based on purposive sampling technique. Results show that more than seventy percent of the respondents neither use prospectus as a guide in understanding share lockup and its provisions nor paying close attention to IPO lockup expiration dates when investing in IPOs. Hence, the findings suggest that retail investors are not attentive to IPO lockup in terms of its provisions and expirations. In addition, 292 IPO firms for the period 2003-2012 involving two lockup regimes is examined. Using the market model and market adjusted return model of event study method, the results show the existence of a significant negative abnormal return at the expiration of the lockup period. Therefore, the study provides contradicting evidence of the semi-strong from of efficient market hypothesis. On the other hand, lockup regulatory changes do not have an impact in reducing the negative abnormal returns at its expiration period. |
| first_indexed | 2024-07-04T06:25:57Z |
| format | Article |
| id | uum-24250 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:25:57Z |
| publishDate | 2017 |
| publisher | Serials Publications Pvt. Ltd. |
| record_format | dspace |
| spelling | uum-242502020-11-04T03:01:12Z https://repo.uum.edu.my/id/eprint/24250/ Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry Mohamed Arshad, Shamsul Bahrain Taufil Mohd, Kamarun Nisham Ahmad Zaluki, Nurwati Ashikkin HC Economic History and Conditions This paper explores the attentiveness of retail investors, and examines share price impact and change in regulation at the expiration of lockup period. Quantitative research method using both primary and secondary data is employed, respectively. The explorative study is derived from a self-administered survey questionnaire using 157 respondents who are clients of the stock broking companies in Malaysia. The survey is conducted in the northern states of Malaysia based on purposive sampling technique. Results show that more than seventy percent of the respondents neither use prospectus as a guide in understanding share lockup and its provisions nor paying close attention to IPO lockup expiration dates when investing in IPOs. Hence, the findings suggest that retail investors are not attentive to IPO lockup in terms of its provisions and expirations. In addition, 292 IPO firms for the period 2003-2012 involving two lockup regimes is examined. Using the market model and market adjusted return model of event study method, the results show the existence of a significant negative abnormal return at the expiration of the lockup period. Therefore, the study provides contradicting evidence of the semi-strong from of efficient market hypothesis. On the other hand, lockup regulatory changes do not have an impact in reducing the negative abnormal returns at its expiration period. Serials Publications Pvt. Ltd. 2017 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/24250/1/IJER%2014%2816%29%202017%20225-234.pdf Mohamed Arshad, Shamsul Bahrain and Taufil Mohd, Kamarun Nisham and Ahmad Zaluki, Nurwati Ashikkin (2017) Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry. International Journal of Economic Research, 14 (16). pp. 225-234. ISSN 0972-9380 http://serialsjournals.com/serialjournalmanager/pdf/1512537799.pdf |
| spellingShingle | HC Economic History and Conditions Mohamed Arshad, Shamsul Bahrain Taufil Mohd, Kamarun Nisham Ahmad Zaluki, Nurwati Ashikkin Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry |
| title | Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry |
| title_full | Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry |
| title_fullStr | Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry |
| title_full_unstemmed | Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry |
| title_short | Investor's Attentiveness, Price Impact and Regulatory Change at Lockup Expiry |
| title_sort | investor s attentiveness price impact and regulatory change at lockup expiry |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/24250/1/IJER%2014%2816%29%202017%20225-234.pdf |
| work_keys_str_mv | AT mohamedarshadshamsulbahrain investorsattentivenesspriceimpactandregulatorychangeatlockupexpiry AT taufilmohdkamarunnisham investorsattentivenesspriceimpactandregulatorychangeatlockupexpiry AT ahmadzalukinurwatiashikkin investorsattentivenesspriceimpactandregulatorychangeatlockupexpiry |