Initial performance of new issues of shares in Malaysia

Research output: Contribution to journalArticle

40 Citations (Scopus)

Abstract

This paper presents the levels of under-pricing for new issues in a developing country, Malaysia, over a more recent period, January 1990-December 1998, than reported in prior studies. Three types of new issues were examined, namely public issue, offer for sale and combination or hybrid of offer for sale and public issue. Comparisons of initial return between types of new issues and between different board of listing were made. The results of independent t-tests for difference in mean initial returns indicate that, in general, there are significant differences in mean initial returns between types of new issues and between boards of listing. The results of step-wise regression reveal that on average, only over-subscription ratio contributes significantly to the initial returns. However, caution should be taken when interpreting the models formed because the Durbin-Watson rest indicate that some models are not free from problem of auto-correlation of the residuals.

Original languageEnglish
Pages (from-to)919-930
Number of pages12
JournalApplied Economics
Volume35
Issue number8
DOIs
Publication statusPublished - 20 May 2003

Fingerprint

New issues
Malaysia
Underpricing
T-test
Stepwise regression
Developing countries
Autocorrelation
Subscription

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Initial performance of new issues of shares in Malaysia. / Yong, Othman; Isa, Zaidi.

In: Applied Economics, Vol. 35, No. 8, 20.05.2003, p. 919-930.

Research output: Contribution to journalArticle

@article{d5c681e63c5445758e345ed5d4f97847,
title = "Initial performance of new issues of shares in Malaysia",
abstract = "This paper presents the levels of under-pricing for new issues in a developing country, Malaysia, over a more recent period, January 1990-December 1998, than reported in prior studies. Three types of new issues were examined, namely public issue, offer for sale and combination or hybrid of offer for sale and public issue. Comparisons of initial return between types of new issues and between different board of listing were made. The results of independent t-tests for difference in mean initial returns indicate that, in general, there are significant differences in mean initial returns between types of new issues and between boards of listing. The results of step-wise regression reveal that on average, only over-subscription ratio contributes significantly to the initial returns. However, caution should be taken when interpreting the models formed because the Durbin-Watson rest indicate that some models are not free from problem of auto-correlation of the residuals.",
author = "Othman Yong and Zaidi Isa",
year = "2003",
month = "5",
day = "20",
doi = "10.1080/0003684022000020869",
language = "English",
volume = "35",
pages = "919--930",
journal = "Applied Economics",
issn = "0003-6846",
publisher = "Routledge",
number = "8",

}

TY - JOUR

T1 - Initial performance of new issues of shares in Malaysia

AU - Yong, Othman

AU - Isa, Zaidi

PY - 2003/5/20

Y1 - 2003/5/20

N2 - This paper presents the levels of under-pricing for new issues in a developing country, Malaysia, over a more recent period, January 1990-December 1998, than reported in prior studies. Three types of new issues were examined, namely public issue, offer for sale and combination or hybrid of offer for sale and public issue. Comparisons of initial return between types of new issues and between different board of listing were made. The results of independent t-tests for difference in mean initial returns indicate that, in general, there are significant differences in mean initial returns between types of new issues and between boards of listing. The results of step-wise regression reveal that on average, only over-subscription ratio contributes significantly to the initial returns. However, caution should be taken when interpreting the models formed because the Durbin-Watson rest indicate that some models are not free from problem of auto-correlation of the residuals.

AB - This paper presents the levels of under-pricing for new issues in a developing country, Malaysia, over a more recent period, January 1990-December 1998, than reported in prior studies. Three types of new issues were examined, namely public issue, offer for sale and combination or hybrid of offer for sale and public issue. Comparisons of initial return between types of new issues and between different board of listing were made. The results of independent t-tests for difference in mean initial returns indicate that, in general, there are significant differences in mean initial returns between types of new issues and between boards of listing. The results of step-wise regression reveal that on average, only over-subscription ratio contributes significantly to the initial returns. However, caution should be taken when interpreting the models formed because the Durbin-Watson rest indicate that some models are not free from problem of auto-correlation of the residuals.

UR - http://www.scopus.com/inward/record.url?scp=0038684568&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0038684568&partnerID=8YFLogxK

U2 - 10.1080/0003684022000020869

DO - 10.1080/0003684022000020869

M3 - Article

AN - SCOPUS:0038684568

VL - 35

SP - 919

EP - 930

JO - Applied Economics

JF - Applied Economics

SN - 0003-6846

IS - 8

ER -