Lock-up expiry and trading volume behaviour of Malaysian initial public offering's

The study aims to investigate the lock-up provisions of initial public offering’s (IPOs) and its effects on trading volume changes around the lock-up expiry date of Malaysian IPOs by using both the event study methodology and the comparison period returns approach (CPRA). Unlike the US and the UK, Malaysia’s lock-up length is fixed and the number of shares that should be under the lock-up is pre-determined by the security commission. The sample comprises 379 Malaysian IPOs, issued from January 2001 to December 2011. The results of the event study methodology and CPRA shows a positive abnormal trading volume at lock-up expiry date for IPO market, except for the ACE market, construction and technology sectors, which is negative and is not consistent with our hypothesis and there is no evidence in previous literatures regarding the significant negative trading volume before and after the lock-up. High trading volume at and around the lock-up expiration is compatible with shareholders’ selling due to diversification reasons and wealth recognition and which is also an indication of insider’s lack of confidence about a company’s future prospect. Significant negative trading volume can be interpreted in a way that insiders of those related boards and sectors do not sell their shares significantly but would rather watch what would happen to the market and are optimistic about Market’s future. Furthermore, when we do not adjust the trading volume for the market, the CPRA methodology does not show abnormal trading volume between event window and non-event windows

Prestasi saham dengan menggunakan sistem Hy5: satu ujian kecekapan pasaran bentuk lemah di Bursa Saham Kuala Lumpur

This study examines the trading performance of Hy5 System relative to the buy-and-hold policy on the Kuala Lumpur Stock Exchange. Using yearly data from a sample of all listed firms in Kuala Lumpur Stock Exchange Industrial Index in the period of 1987-1997, this research finds that Hy5 System cannot outperform the buy-and-hold policy after transaction costs are accounted for

Size of offer, over-subscription ratio and performance of Malaysian IPOs

This paper examines the initial and the long-run performance of initial public offerings (IPOs) of stocks listed on the Main Board of the Kuala Lumpur Stock Exchange. This study finds a significant mean initial return and mean over-subscription ratio, even-though not as high as reported in earlier studies. Size of offer is not correlated with the over-subscription ratio. In general, initial returns are significantly higher than returns for subsequent longer-term holding periods. Mean initial returns among the three types of issue compared are not significantly different from each other: Only in the case of offer for sale that we find a significant positive correlation between its over-subscription ratio and its initial return. Offer-for sale also shows a positive correlation between its over-subscription ratio and its raw return for day-365, but turns significantly negative for day-910 and day-1095. In the case of combination of public issue and offer for sale, over-subscription ratio is not significantly correlated with longer term returns, for either raw or adjusted return. Finally, in the case of public issue, its over-subscription ratio is significantly correlated with its raw return only for day-180 and day-540, and for its adjusted return, the correlation is significant only for day-180 and day-365

Perception on wild elephants among the public in Pahang, Malaysia

A study was conducted via personal interviews from four districts; Kuantan, Rompin, Maran and Jerantut as well as Taman Negara in the state of Pahang to gauge the perceptions of the Malaysian public about the roles of wild elephants. A total of 220 respondents were interviewed. The approach adopted for valuing the conservation benefits of wild elephants was based on the Contingent Valuation Method (CVM). The CVM questionnaire contains a brief introduction of the study, a clear description of the hypothetical market concerning the wild elephants that are being valued, the payment vehicle for the willingness to pay (WTP) bid and the frequency of payment. The results showed that the mean maximum WTP for wild elephants perceived by the respondents was RM 5.86 per person with a median of RM 5.00 per person. Among the socio-economic variables, income and age were statistically significant in explaining the WTP bids. A positive WTP estimates suggested that wild elephants are important and society wants them to be protected, especially among the younger generations because of their greater exposure

Darjah terkurang harga, aktiviti penjualan semula dan tahap kecairan selepas pasaran saham TAA

Kajian empirikal serta teori kecairan menyarankan bahawa darjah terkurang harga meningkatkan tahap kecairan selepas pasaran saham tawaran awam awal (TAA). Beberapa kajian lain pula menyarankan bahawa dipasaran sekunder hubungan tersebut oleh serakan pemilikan yang berfungsi sebagai perantara. Namun begitu, kajian ini lebih berminat kepada cadangan yang menyatakan bahawa kolerasi antara darjah terkurang harga dengan tahap kecairan saham TAA di pasaran sekunder adalah tiggi bagi pasaran TAA yang mempunyai ramai penjual semula(flippers). Berasaskan kepada cadangan tersebut , kajian ini menggunakan data saham TAA yang disenaraikan di Bursa Malaysia dari jun 2003 hingga Disember 2008 untuk menguji peranan yang dimainkan oleh aktiviti penjualan semula (flipping) sebagai perantara kepada hubungan antara darjah terkurang harga dengan tahap kecairan selepas pasaran saham TAA. Hasil analisis regresi berbilang mengesahkan peranan aktiviti penjualan semula sebagai pengantara, sekurang-kurangnya secara separa, dalam hubungan tersebut

IPO Research in Malaysia: A Review of Under-Pricing Phenomenon

This paper examines the current status of research regarding under-pricing in the Malaysian IPOs. We have divided the review of past studies into the following categories: investor information, the choice of underwriter, ownership structure, share lock-up period, supply of IPOs, mechanism for pricing IPOs, institutional investor involvement, and board structure. We have shown that there is a noticeable decline in initial return over time, perhaps due to the strengthening of the regulatory environment and the ability of investment bankers to adequately manage the listing process of new issues. Furthermore, based on the review of past studies, we have managed to pinpoint significant factors that influenced the initial return in the Malaysian IPO market. Finally, we also provide suggestions for future research

Under-pricing and listing board in explaining heterogeneity of opinion regarding values of Malaysian IPOs

Heterogeneity of opinion regarding the value of an initial public offering (IPO) is arguably high due to the lack of prior information on the IPO. This situation is especially true in the case of a fixed-price IPO where, unlike book-building and auction offering methods, potential investors do not have the opportunity to “reveal” their private valuations of the IPO. Using a sample of 112 fixed-price Malaysian IPOs from January 2009 to December 2015, and employing OLS regression together with stepwise regression and hierarchical multiple regression, the objective of this study is to examine the level of under-pricing as the main factor that can possibly explain the heterogeneity of opinion among investors regarding the true value of a fixed-price IPO. The study found that the level of under-pricing, together with control variable ACE Market versus Main Market can explain 50.7 percent of the variation in the heterogeneity of opinion regarding the value of Malaysian fixed-price IPOs. The novelty of this study as opposed to an earlier study by Low and Yong (2013) is in terms of the more rigorous method employed in the form of not just the OLS, but also the stepwise and the hierarchical multiple regressions. This study also offered an improved model with higher R2. The results have some policy implications for the regulatory bodies of Bursa Malaysia in terms of special attention to IPOs listed on the ACE market due to their high initial return and price spread which could be due to excessive speculation

Cytotoxic effects of conjugated linoleic acids on human hepatoma cancer cells (HepG2)

Conjugated linoleic acids (CLAs) are group of polyunsaturated fatty acids that attract considerable attention due to their anticarcinogenic effects. In this study, the viability, apoptosis and cell cycle status of human hepatoma cells (HepG2) following treatment with cis-9,trans-11(c9,t11), trans-10,cis-12 (t10,c12) and mixed isomers of CLA were investigated. Cells were grown routinely on RPMI 1640 media and treated with different concentrations of CLA isomers for 72 hours. 3-(4, 5-dimethylthiazol-2-yl)-2, 5-diphenyltetrazolium bromide (MTT) cytotoxicity assay, acridine orange/propidium iodide (AO/PI) staining and terminal deoxynucleotide transferase deoxyuridine triphosphate nick end labeling (TUNEL) assay were used to determine the results. The viability of HepG2 cells was reduced significantly (P < 0.05) by all CLA isomers tested in a dose-dependent manner. The median inhibitory concentration (IC50) value varies with type of CLA isomer. Mixed isomers were significantly (P < 0.05) more potent than c9, t11 CLA isomer. All CLA isomers tested were able to induce characteristic apoptotic changes and significant (P < 0.05) proportion of apoptosis. Significantly (P < 0.05) higher proportion of cells in G0/1 and lower proportion in G2/M phases of the cell cycle in treated cells were also observed. Therefore, results suggested that CLA isomers reduce viability and proliferation of HepG2 cancer cells in relation with cell cycle arrest and induction of apoptosis

A STUDY OF THE KEY ELEMENTS IN VIRAL MARKETING TOWARDS CONSUMERS’ PURCHASE INTENTION IN KLANG VALLEY, MALAYSIA

This study investigates the critical elements of viral marketing toward consumers' purchasing intention in the Klang Valley, Malaysia. Five perceived viral marketing elements were identified and tested on their relationship to consumers' purchase intentions. The five key factors are perceived informativeness, entertainment, irritation, source credibility, and incentive. To gather and analyse the data related to this study, questionnaires were distributed through the online google platform to the consumers in Klang Valley. A total of 434 respondents contributed to the discussion and conclusion of this study. These respondents are frequent internet users who are familiar with viral marketing. Therefore, it increased the research's credibility. Findings obtained from this study indicated that four key elements of viral marketing, perceived informativeness, perceived entertainment, perceived source credibility, and perceived incentives, are significant and display a positive relationship to consumers' purchasing intention. In contrast, this study illustrated that perceived irritation is not significant for consumers' purchase intentions, indicating that the consumers in the Klang Valley, Malaysia, do not perceive the advertising messages targeted at them causes any annoyance but as helpful during their purchase intention.  Article visualizations