IPO Research in Malaysia: A Review of Under-Pricing Phenomenon

Authors

  • Ali Albada Universiti Kebangsaan Malaysia, Malaysia
  • Othman Yong Universiti Kebangsaan Malaysia, Malaysia

DOI:

https://doi.org/10.32890/ijbf2017.13.1.5

Keywords:

IPOs, Initial public offerings, Malaysian IPOs, Under-pricing of IPOs, Information asymmetry, Determinants of IPO under-pricing

Abstract

This paper examines the current status of research regarding under-pricing in the Malaysian IPOs. We have divided the review of past studies into the following categories: investor information, the choice of underwriter, ownership structure, share lock-up period, supply of IPOs, mechanism for pricing IPOs, institutional investor involvement, and board structure. We have shown that there is a noticeable decline in initial return over time, perhaps due to the strengthening of the regulatory environment and the ability of investment bankers to adequately manage the listing process of new issues. Furthermore, based on the review of past studies, we have managed to pinpoint significant factors that influenced the initial return in the Malaysian IPO market. Finally, we also provide suggestions for future research.

 

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Published

15-03-2018

Issue

Vol. 13 No. 1 (2017): International Journal of Banking and Finance (IJBF) Vol. 13, No.1, 2017

Section

Articles

How to Cite

Albada, A., & Yong, O. (2018). IPO Research in Malaysia: A Review of Under-Pricing Phenomenon. International Journal of Banking and Finance, 13(1), 95-118. https://doi.org/10.32890/ijbf2017.13.1.5

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Harvested 2026-09-07
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Identifiers DOI 10.32890/ijbf2017.13.1.5 OpenAlex W2920380735

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