The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti).

The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti).

The result of this study reveals an evidence of long run underperformance of equity private placements in Malaysia using market index as a benchmark. When the firms are matched to firms with similar size and market-to-book, they neither over-perform nor underperform the matching firms over the thre...

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Main Authors: Norhafiza Nordin, Kamarun Nisham Taufil Mohd.
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2011
Online Access:http://journalarticle.ukm.my/3486/
http://journalarticle.ukm.my/3486/
http://journalarticle.ukm.my/3486/1/jp33-02-lock.pdf
id ukm-3486
recordtype eprints
spelling ukm-34862016-12-14T06:34:37Z http://journalarticle.ukm.my/3486/ The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti). Norhafiza Nordin, Kamarun Nisham Taufil Mohd., The result of this study reveals an evidence of long run underperformance of equity private placements in Malaysia using market index as a benchmark. When the firms are matched to firms with similar size and market-to-book, they neither over-perform nor underperform the matching firms over the three-year period under the equal-weighting scheme. However, a considerable difference exists between the CARs and BHARs under the value-weighting scheme. Unlike previous studies that find small firms underperform more than large firms, results of this study show the opposite. We find that large firms show greater degree of underperformance than small firms. The result definitely does not conform to the widely acceptable idea that smaller firms are more likely to issue equity when they are overvalued due to higher degree of information asymmetry. Further results indicate that the underperformance is driven by the outlier in the sample. When it is excluded from the sample, no significant result is detected for the two-year period. Nevertheless, it is interesting to note that for both CAR and BHAR, the underperformance under equal-weighted scheme is worse when the returns are benchmarked against market index but in sharp contrast, the underperformance under value-weighted scheme is worse when the returns are benchmarked against matching firms. Penerbit Universiti Kebangsaan Malaysia 2011-12 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/3486/1/jp33-02-lock.pdf Norhafiza Nordin, and Kamarun Nisham Taufil Mohd., (2011) The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti). Jurnal Pengurusan, 33 . pp. 17-28. 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 The result of this study reveals an evidence of long run underperformance of equity private placements in Malaysia using market index as a benchmark. When the firms are matched to firms with similar size and market-to-book, they neither over-perform nor underperform the matching firms over the three-year period under the equal-weighting scheme. However, a considerable difference exists between the CARs and BHARs under the value-weighting scheme. Unlike previous studies that find small firms underperform more than large firms, results of this study show the opposite. We find that large firms show greater degree of underperformance than small firms. The result definitely does not conform to the widely acceptable idea that smaller firms are more likely to issue equity when they are overvalued due to higher degree of information asymmetry. Further results indicate that the underperformance is driven by the outlier in the sample. When it is excluded from the sample, no significant result is detected for the two-year period. Nevertheless, it is interesting to note that for both CAR and BHAR, the underperformance under equal-weighted scheme is worse when the returns are benchmarked against market index but in sharp contrast, the underperformance under value-weighted scheme is worse when the returns are benchmarked against matching firms.
format Article
author Norhafiza Nordin,
Kamarun Nisham Taufil Mohd.,
spellingShingle Norhafiza Nordin,
Kamarun Nisham Taufil Mohd.,
The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti).
author_facet Norhafiza Nordin,
Kamarun Nisham Taufil Mohd.,
author_sort Norhafiza Nordin,
title The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti).
title_short The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti).
title_full The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti).
title_fullStr The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti).
title_full_unstemmed The long run share price performance of Malaysian firms issuing equity private placements. (Prestasi jangka panjang syarikat-syarikat Malaysia yang menerbitkan tawaran persendirian ekuiti).
title_sort long run share price performance of malaysian firms issuing equity private placements. (prestasi jangka panjang syarikat-syarikat malaysia yang menerbitkan tawaran persendirian ekuiti).
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2011
url http://journalarticle.ukm.my/3486/
http://journalarticle.ukm.my/3486/
http://journalarticle.ukm.my/3486/1/jp33-02-lock.pdf
first_indexed 2023-09-18T19:38:56Z
last_indexed 2023-09-18T19:38:56Z
_version_ 1777405459330760704

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