Determinants of the Long-Term Performance of Malaysian Initial Public Offerings

• Main Authors: Shari, Wahidah, Abu Hassan, Mohamad Hanif
• Format: Article
• Language: English
• Published: Universiti Utara Malaysia Press 2024
• Subjects: HG Finance
• Online Access: https://repo.uum.edu.my/id/eprint/31245/1/IJBF%2019%2002%202024%20211-240.pdf; https://doi.org/10.32890/ijbf2024.19.2.4; https://repo.uum.edu.my/id/eprint/31245/; https://e-journal.uum.edu.my/index.php/ijbf/article/view/20046; https://doi.org/10.32890/ijbf2024.19.2.4
• Institution: Universiti Utara Malaysia

This study examined the determinants of the long-term performance of 351 initial public offerings (IPOs) launched in Malaysia over the 2002–2010 period. This paper used a panel regression analysis framework based on the ordinary least squares (OLS) technique to examine the potential determinants of IPOs’ long-term performance. The findings revealed that the volatility of aftermarket returns, the dummy ACE market and concentration ownership significantly influence the long-term performance of Malaysian IPOs. This paper offers important implications specifically for investors as the findings can help them understand more about public companies’ long-term performance and how to better predict their performance