IPO market: reaction to lock-up provision / Siti Liyana Amalina Zulkifle

• Main Author: Zulkifle, Siti Liyana Amalina
• Format: Student Project
• Language: English
• Published: 2016
• Subjects: Investment, capital formation, speculation
• Online Access: https://ir.uitm.edu.my/id/eprint/80508/1/80508.pdf; https://ir.uitm.edu.my/id/eprint/80508/
• Institution: Universiti Teknologi Mara

This research paper was conducted to find out the reaction of lock-up provision towards IPO market where it is measure by observing the market reaction in terms of price and volume. The data needed is retrieved from Yahoo Finance and Bursa Malaysia which comprises of 30 listed companies from Main Market in Bursa Malaysia from year 2012 until 2015. The time frame of the research is 30 days before and 30 days after expiration of lock-up period. Methodology used in this research is t-test which is used to determine the significant of average abnormal return (AAR) and average abnormal volume (AAV) by using standard deviation of average abnormal return and average abnormal volume. The findings of this research showed that price and volume do not react to the expiration of lock-up period which means no significant results. Hopefully, the result of this research paper will help investors to make an investment decision by choosing the right time to buy and sell stock in order to maximize profit and minimize losses.