Initial returns of Shariah versus Non-Shariah IPOs: are there any differences?

This study examines a sample of 384 initial public offerings (IPOs) issued and listed on Bursa Malaysia from January 1999 to December 2008. The objectives of this study are to examine the difference in initial returns of Shariah versus non-Shariah IPOs and the factors that explain the initial return...

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Main Authors:	Ruzita Abdul-Rahim, Nor Azizan Che-Embi
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/6983/ http://journalarticle.ukm.my/6983/ http://journalarticle.ukm.my/6983/1/4981-13949-1-PB.pdf

id	ukm-6983
recordtype	eprints
spelling	ukm-69832016-12-14T06:42:46Z http://journalarticle.ukm.my/6983/ Initial returns of Shariah versus Non-Shariah IPOs: are there any differences? Ruzita Abdul-Rahim, Nor Azizan Che-Embi, This study examines a sample of 384 initial public offerings (IPOs) issued and listed on Bursa Malaysia from January 1999 to December 2008. The objectives of this study are to examine the difference in initial returns of Shariah versus non-Shariah IPOs and the factors that explain the initial returns of these IPOs. A matched sample of Shariah IPOs, which contains the same number of IPOs and share similar characteristics with the non-Shariah IPOs, is created to ensure a more compatible comparison. The results of the difference tests consistently show that the initial returns of non-Shariah IPOs are not statistically different from those of all and matched sample of Shariah IPOs. The cross-sectional multiple regressions yield results demonstrating that Shariah and non-Shariah IPOs share only one common factor: allocation rate. Other than the sole common factor, the initial returns of non-Shariah IPOs are determined by external factors, namely the reputation of the underwriter and the condition of the market. On the contrary, the initial returns of the Shariah IPOs (all) depend on internal factors, namely the size of the offer; the age of the firm; and the ownership of the top five shareholders. As far as the result of the matched Shariah sample is concerned, none of the other variables are significant in explaining the initial returns. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6983/1/4981-13949-1-PB.pdf Ruzita Abdul-Rahim, and Nor Azizan Che-Embi, (2013) Initial returns of Shariah versus Non-Shariah IPOs: are there any differences? Jurnal Pengurusan, 39 . pp. 37-50. ISSN 0127-2713 http://ejournals.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This study examines a sample of 384 initial public offerings (IPOs) issued and listed on Bursa Malaysia from January 1999 to December 2008. The objectives of this study are to examine the difference in initial returns of Shariah versus non-Shariah IPOs and the factors that explain the initial returns of these IPOs. A matched sample of Shariah IPOs, which contains the same number of IPOs and share similar characteristics with the non-Shariah IPOs, is created to ensure a more compatible comparison. The results of the difference tests consistently show that the initial returns of non-Shariah IPOs are not statistically different from those of all and matched sample of Shariah IPOs. The cross-sectional multiple regressions yield results demonstrating that Shariah and non-Shariah IPOs share only one common factor: allocation rate. Other than the sole common factor, the initial returns of non-Shariah IPOs are determined by external factors, namely the reputation of the underwriter and the condition of the market. On the contrary, the initial returns of the Shariah IPOs (all) depend on internal factors, namely the size of the offer; the age of the firm; and the ownership of the top five shareholders. As far as the result of the matched Shariah sample is concerned, none of the other variables are significant in explaining the initial returns.
format	Article
author	Ruzita Abdul-Rahim, Nor Azizan Che-Embi,
spellingShingle	Ruzita Abdul-Rahim, Nor Azizan Che-Embi, Initial returns of Shariah versus Non-Shariah IPOs: are there any differences?
author_facet	Ruzita Abdul-Rahim, Nor Azizan Che-Embi,
author_sort	Ruzita Abdul-Rahim,
title	Initial returns of Shariah versus Non-Shariah IPOs: are there any differences?
title_short	Initial returns of Shariah versus Non-Shariah IPOs: are there any differences?
title_full	Initial returns of Shariah versus Non-Shariah IPOs: are there any differences?
title_fullStr	Initial returns of Shariah versus Non-Shariah IPOs: are there any differences?
title_full_unstemmed	Initial returns of Shariah versus Non-Shariah IPOs: are there any differences?
title_sort	initial returns of shariah versus non-shariah ipos: are there any differences?
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/6983/ http://journalarticle.ukm.my/6983/ http://journalarticle.ukm.my/6983/1/4981-13949-1-PB.pdf
first_indexed	2023-09-18T19:48:26Z
last_indexed	2023-09-18T19:48:26Z
_version_	1777406057310584832

Initial returns of Shariah versus Non-Shariah IPOs: are there any differences?

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