Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009

This papaer examines the winner's curse hypothesis and the bandwagon effect in initial public offerings (IPOS), using malaysian IPO data from January 2001 to December 2009. The average initial return (offer-to-close) for the 160 Malaysian private placement IPOS is 18.51 percent as opposed to th...

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Main Author:	Othman Yong
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2011
Online Access:	http://journalarticle.ukm.my/2099/ http://journalarticle.ukm.my/2099/ http://journalarticle.ukm.my/2099/1/jurus_32-03-lock.pdf

id	ukm-2099
recordtype	eprints
spelling	ukm-20992011-06-30T01:01:45Z http://journalarticle.ukm.my/2099/ Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009 Othman Yong, This papaer examines the winner's curse hypothesis and the bandwagon effect in initial public offerings (IPOS), using malaysian IPO data from January 2001 to December 2009. The average initial return (offer-to-close) for the 160 Malaysian private placement IPOS is 18.51 percent as opposed to the average initial return (offer-to-lose) of 28.84 percent for the 210 non-private placement IPOS, which gives support to the winner's curse hypothesis , where uninformed investors (using private placement IPOS as the proxy) demand a higher initial return in the absense of informed investors (using private placement IPOS as the proxy).The study also finds that the present of a large number of informed investors in an IPO exercise, as compared to uninformed investors, brings with it an increased interest, or the bandwagon effect, in that particular stock, which results in higher initial return. Penerbit Universiti Kebangsaan Malaysia 2011-07 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/2099/1/jurus_32-03-lock.pdf Othman Yong, (2011) Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009. Jurnal Pengurusan, 32 . pp. 21-26. ISSN 0127-2713 http://pkukmweb.ukm.my/~penerbit/jurus.htm
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This papaer examines the winner's curse hypothesis and the bandwagon effect in initial public offerings (IPOS), using malaysian IPO data from January 2001 to December 2009. The average initial return (offer-to-close) for the 160 Malaysian private placement IPOS is 18.51 percent as opposed to the average initial return (offer-to-lose) of 28.84 percent for the 210 non-private placement IPOS, which gives support to the winner's curse hypothesis , where uninformed investors (using private placement IPOS as the proxy) demand a higher initial return in the absense of informed investors (using private placement IPOS as the proxy).The study also finds that the present of a large number of informed investors in an IPO exercise, as compared to uninformed investors, brings with it an increased interest, or the bandwagon effect, in that particular stock, which results in higher initial return.
format	Article
author	Othman Yong,
spellingShingle	Othman Yong, Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009
author_facet	Othman Yong,
author_sort	Othman Yong,
title	Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009
title_short	Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009
title_full	Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009
title_fullStr	Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009
title_full_unstemmed	Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009
title_sort	winner's curse and bandwagon effect in malaysian ipos: evidence from 2001-2009
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2011
url	http://journalarticle.ukm.my/2099/ http://journalarticle.ukm.my/2099/ http://journalarticle.ukm.my/2099/1/jurus_32-03-lock.pdf
first_indexed	2023-09-18T19:35:11Z
last_indexed	2023-09-18T19:35:11Z
_version_	1777405223978926080

Winner's curse and bandwagon effect in Malaysian IPOs: evidence from 2001-2009

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