The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia
The purpose of this paper is to examine the influence of firm size on oversubscription of initial public offerings (IPOs) listed on the Bursa Malaysia from the period of 2005 to 2015. The presence of firm size in influencing oversubscription further enables us to test the information asymmetry argue...
| Egile Nagusiak: | , , |
|---|---|
| Formatua: | Artikulua |
| Hizkuntza: | English |
| Argitaratua: |
2017
|
| Gaiak: | |
| Sarrera elektronikoa: | https://repo.uum.edu.my/id/eprint/25616/1/IJRMEC%207%208%202017%2045%2050.pdf |
| _version_ | 1825805322986455040 |
|---|---|
| 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 | The purpose of this paper is to examine the influence of firm size on oversubscription of initial public offerings (IPOs) listed on the Bursa Malaysia from the period of 2005 to 2015. The presence of firm size in influencing oversubscription further enables us to test the information asymmetry argued by Beatty and Ritter
(1986). Data of 254 IPOs over a period of 11 years were obtained from the websites of Bursa Malaysia.
Multivariate regression analysis was carried out to test for the relationship between oversubscription and independent variables. The finding of the study shows that firm size has a significant and negative influence on oversubscription. The result indicates that large firm which have a proven track records would have lower information asymmetry and do not need to under price their IPOs to attract investors and decrease the probability of oversubscription. |
| first_indexed | 2024-07-04T06:30:24Z |
| format | Article |
| id | uum-25616 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:30:24Z |
| publishDate | 2017 |
| record_format | eprints |
| spelling | uum-256162019-02-24T00:05:19Z https://repo.uum.edu.my/id/eprint/25616/ The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia Tajuddin, Ahmad Hakimi Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham HJ Public Finance The purpose of this paper is to examine the influence of firm size on oversubscription of initial public offerings (IPOs) listed on the Bursa Malaysia from the period of 2005 to 2015. The presence of firm size in influencing oversubscription further enables us to test the information asymmetry argued by Beatty and Ritter (1986). Data of 254 IPOs over a period of 11 years were obtained from the websites of Bursa Malaysia. Multivariate regression analysis was carried out to test for the relationship between oversubscription and independent variables. The finding of the study shows that firm size has a significant and negative influence on oversubscription. The result indicates that large firm which have a proven track records would have lower information asymmetry and do not need to under price their IPOs to attract investors and decrease the probability of oversubscription. 2017 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/25616/1/IJRMEC%207%208%202017%2045%2050.pdf Tajuddin, Ahmad Hakimi and Abdullah, Nur Adiana Hiau and Taufil Mohd, Kamarun Nisham (2017) The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia. International Journal of Research in Management, Economics and Commerce, 7 (8). pp. 45-50. ISSN 2250-057X http://indusedu.org/papers-ijrmec.php?id=7-8-8-2017 |
| spellingShingle | HJ Public Finance Tajuddin, Ahmad Hakimi Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia |
| title | The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia |
| title_full | The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia |
| title_fullStr | The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia |
| title_full_unstemmed | The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia |
| title_short | The influence of firm size on IPO oversubscription: evidence from Bursa Malaysia |
| title_sort | influence of firm size on ipo oversubscription evidence from bursa malaysia |
| topic | HJ Public Finance |
| url | https://repo.uum.edu.my/id/eprint/25616/1/IJRMEC%207%208%202017%2045%2050.pdf |
| work_keys_str_mv | AT tajuddinahmadhakimi theinfluenceoffirmsizeonipooversubscriptionevidencefrombursamalaysia AT abdullahnuradianahiau theinfluenceoffirmsizeonipooversubscriptionevidencefrombursamalaysia AT taufilmohdkamarunnisham theinfluenceoffirmsizeonipooversubscriptionevidencefrombursamalaysia AT tajuddinahmadhakimi influenceoffirmsizeonipooversubscriptionevidencefrombursamalaysia AT abdullahnuradianahiau influenceoffirmsizeonipooversubscriptionevidencefrombursamalaysia AT taufilmohdkamarunnisham influenceoffirmsizeonipooversubscriptionevidencefrombursamalaysia |