The Long Run Share Price Performance of Malaysian Initial Public Offerings (Ipos)

This paper investigates the long run share price performance of 454 Malaysian IPOs during the period 1990 to 2000. In contrast with developed markets, significant overperformance is found for equally-weighted event time CARs and buy-and-hold returns using two market benchmarks, though not for value-weighted returns or using a matched company benchmark. The significant abnormal performance also disappears under the calendar-time approach using the Fama-French (1993) three factor model. While the long run performance of Main and Second Board IPOs does not differ, the year of listing, issue proceeds and initial returns are found to be performance-related.

Keywords: Initial public offerings, long run performance, Fama-French model

JEL Classification: G32, G14

Suggested Citation: Suggested Citation

Ahmad-Zaluki, Nurwati A. and Campbell, Kevin and Goodacre, Alan, The Long Run Share Price Performance of Malaysian Initial Public Offerings (Ipos) (May 2006). Available at SSRN: https://ssrn.com/abstract=619103 or http://dx.doi.org/10.2139/ssrn.619103

Nurwati A. Ahmad-Zaluki (Contact Author)

Universiti Utara Malaysia - Othman Yeop Abdullah Graduate School of Business ( email )

Universiti Utara Malaysia
Kuala Lumpur, Kuala Lumpur 50300
Malaysia

Kevin Campbell

University of Stirling - Stirling Management School ( email )

Stirling Management School
Division of Accounting and Finance
Stirling, Scotland FK9 4LA
United Kingdom
(44) 1786 467280 (Phone)
(44) 1786 467308 (Fax)