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Underpricing in the Malaysian IPO Market During 2009-2014

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  • Nibu Raj Abraham

    (Viswajyothi College of Engineering and Technology, India)

Abstract

The paper analyses the extent of underpricing that exists in the Malaysian IPO market. 114 IPOs issued during 2009 to 2014 at Malaysian market has been used for the study. The findings of this study substantiate the presence of underpricing in Malaysian IPO market. The empiricial results suggest that the investors, who put their money in IPOs, are earning an average of 23.45% return on the listing day. However, the extent of underpricing that exists in the Malaysian market is very small compared to other markets around the world.

Suggested Citation

  • Nibu Raj Abraham, 2015. "Underpricing in the Malaysian IPO Market During 2009-2014," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(4), pages 194-200, November.
    • Handle: RePEc:ods:journl:v:4:y:2015:i:4:p:194-200
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    References listed on IDEAS

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    Cited by:

    1. Yu Zhang & Xiaosong Zheng, 2016. "A Study of Herd Behavior Based on the Chinese Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(2), pages 131-135, May.
    2. Andrea Krýslová, 2018. "Development of Changes in Corporate Governance Considering Its Non-Financial Factors through the Companies´ and Investors´ Lens," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 225-235, November.

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