Zi, Ong Chui (2016) The effects of institutional ownership, leverage and earnings per share on offer price: an empirical study of IPO in Malaysia. Masters thesis, Universiti Utara Malaysia.
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Abstract
This study examines the effects of institutional ownership, leverage and earnings per share on the offer price in 71 Malaysian IPOs within the periods from year 2011 to 2015. This research examines the hypotheses by employing cross-sectional multiple
regression. The finding indicates that there is a negative relationship between institutional ownership and IPO offer price. This implies that high percentage of institutional investors involve into IPO markets lead to less uncertainty of IPOs, and hence low offer price is issued since uninformed investors require high initial returns
from investing, which supports Rock’s Winner’s Curse Theory. Moreover, earnings per share is positively related to the IPO offer price. This indicates that a good quality firms able to generate favorable profits in future, in which support signaling theory. However, there is no relationship between leverage and IPO offer price is found from the results.
Item Type: | Thesis (Masters) |
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Supervisor : | Mohd Rashid, Rasidah |
Item ID: | 6102 |
Uncontrolled Keywords: | IPO; Offer Price; Institutional Ownership; Leverage; Earnings per Share; Winner Curse Theory; Signaling Theory |
Subjects: | H Social Sciences > HG Finance |
Divisions: | School of Economics, Finance & Banking |
Date Deposited: | 09 Mar 2017 09:45 |
Last Modified: | 08 Dec 2021 03:13 |
Department: | School of Economics, Finance and Banking |
Name: | Mohd Rashid, Rasidah |
URI: | https://etd.uum.edu.my/id/eprint/6102 |