Divergence Of Opinion, Representative Heuristics, Disposition Effect And Noise Trading In The Malaysian New Listings Market [HG4028.S7 C548 2007 f rb].

Seperti juga di kebanyakan negara lain, fenomena anomali harga jangka pendek dan jangka panjang dalam pasaran penyenaraian baru di Malaysia telah didokumenkan secara meluas. Similar to those in many other countries, the phenomena of short-run and long-run pricing anomalies of the Malaysian new listings market have been widely documented

Can behavioural theories explain the initial return of Malaysian IPOs? / Fen Nee Chong

This paper investigated the impact of behavioural biases on the initial returns ofMalaysian IPOs from the perspectives of divergence of opinion and representative heuristics theories. The initial returns were calculated using 142 IPO samples listed on the Main Board of Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). In addition to the behavioural proxies, ex-ante variables were included as control variables in the models for analysis. The findings showed support for initial underpricing of66.51%. Behavioural biases, divergence ofopinion and representative heuristics, were found to have significant explanatory powers over initial returns. The findings fit well with the profile of the Malaysian market whereby the majority of the investors are individuals who are not well-informed and have an emerging market status

Pricing behavior of new listings on Bursa Malaysia during 1991-2000 / Chong Fen Nee... [et al.]

The equity market is an integral part of the capital market, enabling companies to raise capital through the issuance and sale of shares and other financial derivatives. It also enhances the marketability and liquidity of these financial instruments by providing the market for their trading. The past thirty years have witnessed numerous companies worldwide raising capital from the equity market, mostly through initial public offerings. (IPOs) IPOs may be undertaken in the form of new issues (the issuance of new shares for sale), offers for sale (the sale of previously issued shares by the owners of private companies) or a combination of new issues and offers for sale. The rapid increase in the number of IPOs worldwide are attributed to a number of factors. These included the growing awareness among private companies of the benefits of going public, the desire for larger capital bases to capitalize on opportunities, the efforts by national governments either to establish a national capital market or to enhance the efficiency and liquidity of the existing markets to enhance economic growth, the acceleration of the process of privatization of government entities and the transition from socialist to market-oriented economies in many countries. Specific reasons for IPOs include the desire of companies to reduce the cost of new funds and to reduce the level of leverage. For the original owners of private companies, the reasons for undertaking IPOs include the desire to enhance the liquidity of their investments, realize part of the value of their investments and reduce their exposure to risk through reduction of their equity stake. Research interest on IPOs was motivated by three commonly observed phenomena pertaining to the price performance of new listings, namely the initial or short-run underpricing, the "hot issue' market phenomenon and the long-run under performance. The initial underpricing phenomenon referred to the positive difference between the price of new listings on the first trading day with the offer price. The 'hot issue’ market phenomenon relate to the observed pattern of recurring cycles in which periods of high positive initial returns were associated with increasing numbers of IPOs while periods of low positive and negative initial returns were

Pricing behaviour of new listings on Bursa Malaysia during 1991-2000 / Chong Fen Nee... [et al.]

The equity market is an integral part of the capital market, enabling companies to raise capital through the issuance and sale of shares and other financial derivatives. It also enhances the marketability and liquidity of these financial instruments by providing the market for their trading. The past thirty years have witnessed numerous companies worldwide raising capital from the equity market, mostly through initial public offerings.(IPOs) IPOs may be undertaken in the form of new issues (the issuance of new shares for sale), offers for sale (the sale of previously issued shares by the owners of private companies) or a combination of new issues and offers for sale. The rapid increase in the number of IPOs worldwide are attributed to a number of factors. These included the growing awareness among private companies of the benefits of going public, the desire for larger capital bases to capitalise on opportunities, the efforts by national governments either to establish a national capital market or to enhance the efficiency and liquidity of the existing markets to enhance economic growth, the acceleration of the process of privatisation of government entities and the transition from socialist to market-oriented economies in many countries. Specific reasons for IPOs include the desire of companies to reduce the cost of new funds and to reduce the level of leverage. For the original owners of private companies, the reasons for undertaking IPOs include the desire to enhance the liquidity of their investments, realize part of the value of their investments and reduce their exposure to risk through reduction of their equity stake. Research interest on IPOs was motivated by three commonly observed phenomena pertaining to the price performance of new listings, namely the initial or short-run under-pricing, the 'hot issue' market phenomenon and the long-run under performance. The initial under-pricing phenomenon referred to the positive difference between the price of new listings on the first trading day with the offer price. The 'hot issue' market phenomenon relate to the observed pattern of recurring cycles in which periods of high positive initial returns were associated with increasing numbers of IPOs while periods of low positive and negative initial returns were associated with reducing number of IPOs. With regard to the third phenomenon, although the evidence of long-run under-performance were inconclusive, the frequency of their occurrence have led to a number of theoretical explanations being propounded. These included Miller's 'Divergence of Opinion', Shiller's 'Impresario' and Schultz's'Windows of Opportunity' hypotheses. This study examines the short-run price performance of a sample of 250 new listings on the main and second board of Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange) from 1991 to 2000. Among the findings is that the new listings registered an average initial raw return of 89.7% and an average market-adjusted return of 90.4%. This finding is in line with the widely reported initial under-pricing phenomenon of new issues in both developed and developing stock markets worldwide. The degree of under-pricing is also within the range of 57.4% to 135% as reported by various studies on new listings on Bursa Malaysia. The study further found that new listings on the second board, with an average initial market-adjusted return of 96.4%, out-performed the 80.1% recorded by new listings on the main board. The study also found that while the average initial market-adjusted return varied substantially across different sectors, the variation was statistically insignificant. Likewise, it was found that the difference in the average market-adjusted return across listing years, although considerable, was statistically insignificant. Finally, the study found the existence of positive relationships between the market-adjusted initial return with the over-subscription rate, the operating history, the market condition, the listing board, privatisation and the amount of proceeds raised. However, only the relationships between the initial return with the over-subscription rate and the market condition were significant. The implication of this is that it would not be possible for investors to accurately predict the initial price performance of Malaysian new listings through analysing the ex-ante uncertainty factors

A study of knowledge workers and productivity in the commercial banking industry in Kuching / Rosita Suhaimi ...[et al.]

This study seeks to understand the relationship between knowledge workers, the banking work environment and the impact of the work environment on the productivity of the commercial banks in Kuching. The definition of the work environment includes Peter Drucker's 6 factors, namely task identification, autonomy , continuous innovation, continuous learning, importance of quality and employee as asset. Productivity of banks is measured using productivity measures such as counter transactions per day, loan applications processed/approved, values of deposits, value of credit approved, gross profit before tax, and average cost per employee

Repayment behavior of development financial Institution borrowers/ Chong Fen Nee… [et al.]

This study investigates the repayment pattern of Development Financial Institutions borrowers in Sabah and Sarawak. Additionally, factors such as demographic profile, loan characteristics and borrower-lender distance are examined to determine their relationships with repayment performance. A total of two hundred and forty-two questionnaires were collected during the study period and used for the analysis. Findings showed that 43% of the respondents default their credit obligations while the remaining take between one to six months to settle their monthly arrears. When the cross-tabulation analysis was used to identify the common demographic characteristics of the defaulters, it was found that most of the defaults are male, attain a lower level of education, have a higher total number of dependents and self employed. An empirical analysis on the impact of the factors affecting repayment performance of Development Financial Institutions using logistic regression analysis suggested that Development Financial Institutions should manage the borrower-lender distance actively and impose a collateral requirement in order to mitigate default problem's

Does Research and Development Expenditure Co-integrate with Gross National Income of ASEAN Countries?

In order to successfully transform into a knowledge economy and eradicate poverty, many ASEAN countries have allocated a considerable amount of their yearly expenditures in research and development over the last decade. The objective of this paper is to examine the long-run relationship between research and development expenditure and gross national income of five major ASEAN countries – Thailand, Malaysia, Singapore, Indonesia and Philippines. The results of a cross-country panel data analysis performed in this study suggest that there is a long-run cointegration relationship between these two variables. Findings imply that higher research and development expenditure has a favorable impact on the long-run prosperity of these countries

The significance of R&D investment and ICT usage in generating high income economy: an analysis on selected ASEAN countries / Chong Fen Nee ... [et al.]

The main purpose of this study is to explore the impact of R&D investment on the proxies of income or wealth among ASEAN countries. Gross national income (GNI) per capital will be used as proxy of wealth in this study. This study is of significant because in order to cope with the globalization and transforming into knowledge based economy both the government and industries have beefed up efforts in R & D. Nevertheless, prior research only examined the significance of R&D investment at the firm rather than country level. Some believe that it enhances corporate growth while other found it generates higher income much later. In terms of methodology, multi-factor model will be employed as it is a better alternative comparing to the CAPM and APT in explaining variations in stock returns. Relevant data will be extracted from secondary resources. Furthermore, time series econometrics will be used to analyze and provide results to the objectives proposed in this study. Apart from providing additional information to the practitioners to facilitate better decision making in the future and enriching the existing literature to pave ways for more researchers to the academics, this study also intends to contribute useful input for future policy formulation

Does Noise Signal Affect Flipping Activities?

In this paper, we report the explanatory power of noise signal and fundamentals on flipping activities of share trading. Flipping is defined as the percentage of opening day trading volume divided by the number of shares offered on the first trading day (Miller and Reily, 1987, and Aggarwal, 2003) in an offer for sale. It is affected by investors’ opinion about, for example, the new issue’s future prospect on the first listing day.The initial premium which is defined as the difference between the opening price and the offer price divided by the offer price is used as a proxy for noise signal. Using initial public offers listed on the Main Board of Bursa Malaysia during the period of 1991 to 2003, we find support for the relationship between noise signal and flipping activity in the immediate aftermarket as evident in several models tested as well as the bullish and bearish market models. Among the fundamental factors included in this study, bigger size of offer was found to discourage flipping activities