Shariah-compliant status and IPO oversubscriptions
Purpose – The purpose of this paper is to examine the impact of Shariah-compliant status on oversubscription of initial public offerings (IPOs) in Malaysia. It is believed that the Shariah-compliant status serves as a platform that sends a credible signal to investors which could possibly explain t...
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| Format: | Article |
| Language: | English |
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Emerald Publishing Limited
2018
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| Online Access: | https://repo.uum.edu.my/id/eprint/25609/1/JIABR%209%204%202018%20531%20548.pdf |
| _version_ | 1803628967779893248 |
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| author | Tajuddin, Ahmad Hakimi Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham |
| author_facet | Tajuddin, Ahmad Hakimi Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham |
| author_sort | Tajuddin, Ahmad Hakimi |
| collection | UUM |
| description | Purpose – The purpose of this paper is to examine the impact of Shariah-compliant status on oversubscription of initial public offerings (IPOs) in Malaysia. It is believed that the Shariah-compliant status serves as a platform
that sends a credible signal to investors which could possibly explain the IPO oversubscription anomaly. Design/methodology/approach – This study used a multivariate and quantile regression model which involved 252 IPOs listed on Bursa Malaysia from 2005 to 2015.Findings – The results show a significant positive relationship between Shariah-compliant status and oversubscription ratio, which suggests that companies with Shariah status could draw the attention of the investors.Strict guidelines and permissible elements of Shariah-compliant are considered agreeable and amicable by the investors. Research limitations/implications – Future studies should look into financial ratio benchmark (cash and debt) for determining Shariah-compliant status to enhance the understanding of oversubscription of IPOs in Malaysia. Practical implications – This study offers practical understanding to the issuers and underwriters on
the factors that should be considered in assuring a good early performance of their issuance. Therefore, it will benefit the issuers and underwriters in managing and planning the IPO process carefully. Social implications – The results of this study provide a new insight for investors regarding important information found in the prospectus when making the decisions to subscribe to IPOs. Originality/value – This paper is one of the first to provide an empirical evidence of the impact of Shariah-compliant status on oversubscription in the IPO market. |
| first_indexed | 2024-07-04T06:30:22Z |
| format | Article |
| id | uum-25609 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:30:22Z |
| publishDate | 2018 |
| publisher | Emerald Publishing Limited |
| record_format | dspace |
| spelling | uum-256092019-02-19T08:31:23Z https://repo.uum.edu.my/id/eprint/25609/ Shariah-compliant status and IPO oversubscriptions Tajuddin, Ahmad Hakimi Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham HG Finance Purpose – The purpose of this paper is to examine the impact of Shariah-compliant status on oversubscription of initial public offerings (IPOs) in Malaysia. It is believed that the Shariah-compliant status serves as a platform that sends a credible signal to investors which could possibly explain the IPO oversubscription anomaly. Design/methodology/approach – This study used a multivariate and quantile regression model which involved 252 IPOs listed on Bursa Malaysia from 2005 to 2015.Findings – The results show a significant positive relationship between Shariah-compliant status and oversubscription ratio, which suggests that companies with Shariah status could draw the attention of the investors.Strict guidelines and permissible elements of Shariah-compliant are considered agreeable and amicable by the investors. Research limitations/implications – Future studies should look into financial ratio benchmark (cash and debt) for determining Shariah-compliant status to enhance the understanding of oversubscription of IPOs in Malaysia. Practical implications – This study offers practical understanding to the issuers and underwriters on the factors that should be considered in assuring a good early performance of their issuance. Therefore, it will benefit the issuers and underwriters in managing and planning the IPO process carefully. Social implications – The results of this study provide a new insight for investors regarding important information found in the prospectus when making the decisions to subscribe to IPOs. Originality/value – This paper is one of the first to provide an empirical evidence of the impact of Shariah-compliant status on oversubscription in the IPO market. Emerald Publishing Limited 2018 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25609/1/JIABR%209%204%202018%20531%20548.pdf Tajuddin, Ahmad Hakimi and Abdullah, Nur Adiana Hiau and Taufil Mohd, Kamarun Nisham (2018) Shariah-compliant status and IPO oversubscriptions. Journal of Islamic Accounting and Business Research, 9 (4). pp. 531-548. ISSN 1759-0817 http://doi.org/10.1108/JIABR-10-2017-0147 doi:10.1108/JIABR-10-2017-0147 doi:10.1108/JIABR-10-2017-0147 |
| spellingShingle | HG Finance Tajuddin, Ahmad Hakimi Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham Shariah-compliant status and IPO oversubscriptions |
| title | Shariah-compliant status and IPO oversubscriptions |
| title_full | Shariah-compliant status and IPO oversubscriptions |
| title_fullStr | Shariah-compliant status and IPO oversubscriptions |
| title_full_unstemmed | Shariah-compliant status and IPO oversubscriptions |
| title_short | Shariah-compliant status and IPO oversubscriptions |
| title_sort | shariah compliant status and ipo oversubscriptions |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/25609/1/JIABR%209%204%202018%20531%20548.pdf |
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