Author:
Md Thani Azlan,Abdul Fatah Muhammad Mukhlis,Shaharudin Shazali bin,Mustafa Mohd Ariff,Mohd Razali Mohd Waliuddin
Abstract
This study investigates the share price performance of the IPOs surrounding the expiration of the lockup period in the Malaysian stock market. The study explores whether the IPOs without analysts’ positive recommendations give a significant positive share price performance in situations of the negative effect of the expiration of the lockup period. The IPOs sample of 281 companies was taken from the period of January 2000 to December 2014. The study applied event study methodology to investigate the performance of the IPO share price. The study found that the IPOs without analysts’ positive recommendations gave an insignificant positive share price performance in the event window of (-10, +10) surrounding the expiration of the lockup period. Whilst, the longer event window (-30, +30) shows a significant positive share price performance surrounding the expiration of the lock-up period
Publisher
AMH International Conferences and Seminars Organizing LLC
Reference51 articles.
1. Abdul Rahim, R., & Yong, O. (2010). Initial returns of Malaysian IPOs and Shari’a-compliant status. Journal of Islamic Accounting and Business Research, 1(1), 60–74. https://doi.org/10.1108/17590811011033415
2. Aggarwal, R. K., Krigman, L., & Womack, K. L. (2002). Strategic IPO Underpricing, Information Momentum, and Lockup Expiration Selling. August 2016. https://doi.org/10.2139/ssrn.266956
3. Ahmad-Zaluki, N. A., & Kect, L. B. (2012). The investment performance of MESDAQ market Initial Public Offerings (IPOs). Asian Academy of Management Journal of Accounting & Finance, 8(1), 1-23.
4. Ahmed, M. S., & Alhadab, M. (2020). Momentum, asymmetric volatility and idiosyncratic risk-momentum relation: Does technology-sector matter? Quarterly Review of Economics and Finance, 78, 355–371. https://doi.org/10.1016/j.qref.2020.05.005
5. Arthurs, J., Busenitz, L., Hoskisson, R. & Johnson, R. (2009). Signaling and Initial Public Offerings: The Use and Impact of the Lockup Period. Journal of Business Venturing. 24. 360-372. 10.1016/j.jbusvent.2008.02.004.