Privatisation initial public offerings in Malaysia: Initial premium and long-term performance

Paudyal, Krishna; Saadouni, Brahim; Briston, R. J.

doi:10.1016/s0927-538x(98)00018-3

Cited by 120 publications

(131 citation statements)

References 22 publications

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“…The average discount at issues by the State Property Agency (the government institution responsible for privatization) was 31 percent (adjusted for market variation), while private issues were underpriced on average only at 11 percent. This finding is in accordance with empirical results by Paudyal et al (1998) concerning IPOs in an emerging economy, Malaysia.…”

Section: Discussionsupporting

confidence: 92%

Pricing Initial Public Offerings in Premature Capital Markets: The Case of Hungary

Schindele

Perotti

2003

SSRN Journal

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Section: Discussionsupporting

confidence: 92%

Pricing Initial Public Offerings in Premature Capital Markets: The Case of Hungary

Schindele

Perotti

2003

SSRN Journal

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“…Only VIFs in excess of 10 are deemed to show evidence of significant multicolinearity (Neter et al, 1989 as cited in Firth, 1997). Finally, the multiple correlation is low and the tolerance is high in all regressions, which suggests 28 The same measure of ex ante risk was used in Ritter (1984), and Paudyal et al (1998). Relevant Pearsons' correlation coefficients were 0.454 and -0.479 respectively.…”

Section: Determinants Of Short Run Financial Performance For Pipos Inmentioning

confidence: 94%

“…The adjusted returns in Dewenter and Malatesta were calculated using Morgan Stanley's Europe Index instead of the BUX index used in our study. I With the exception of Malaysia according to the results reported in Paudyal et al (1998).…”

Section: Short Run Financial Performance Of Hungarian Piposmentioning

confidence: 99%

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The Financial Performance Of Privatised Firms: Evidence From Three Transition Economies

Jelic

2001

SSRN Journal

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There is a gap between the theoretical literature which almost unanimously advocates privatisation of banks and enterprises as a part of the solution for the commitment problem in economies in transition, and empirical evidence on how best to design a privatisation programme in order to secure an efficient use of resources. This thesis contributes to this debate by focusing on privatisation programmes and the financial performance of privatised enterprises in Poland, Hungary, and the Czech Republic. This is the first comprehensive comparative study on the short and long run financial performance of privatisation share issues in these countries. The thesis builds on privatisation theories formulated in Perotti (1995) and Perotti and Biais (1997), and the empirical evidence on performance of privatisation share issues presented in Perotti and Guney (1993), Malatesta (1997), andMegginson et al. (1998a).Alternative privatisation schemes are assessed not only on the grounds of speed and effect on the state budget, but also with regard to the benefits they bring to domestic and foreign shareholders in privatised companies. The results provide support for the underlying political and economic theories on privatisation and reveal the importance of a choice of privatisation methods to enhance the financial performance of newly privatised enterprises in transition economies.iii

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“…Two notable studies, Ritter (1991) and Loughran and Ritter (1995), show that IPOs significantly underperform their matched-firm benchmarks in the five years after their offering. This typical issue has been examined in various capital markets, such as in Latin America (Aggarwal et al, 1993), the United Kingdom (Espenlaub et al, 2000), Germany (Stehle et al, 2000), South Africa (Page and Reyneke, 1997), Japan (Hwang and Jayaraman, 1995), Singapore (Lee et al, 1996), Korea (Kim et al, 1994), China (Mok and Hui, 1998), and Malaysia (Paudyal et al, 1998).…”

Section: Theoretical Reviewmentioning

confidence: 99%

Earnings and Cash Flows Behaviour in Indonesian Initial Public Offerings

Irawan¹,

Gumanti²,

Manik³

2017

EKUITAS

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Initial public offerings (IPOs) offer a fruitful area to be explored given the existence of asymmetric information among various parties interested in the IPO. One of the issues pertaining in the IPO setting is the presumed existence of earnings management practice (Teoh et al., 1998). In this case, there seems to be strong incentives of the owners of the firm to make financial performance of the firm look better in the periods before the offering. This study attempts to examine whether there is significant increase in earnings level prior to the offering to be interpreted as the existence of earnings management. The behaviour of cash flow from operation is also examined. A sample of 35 Indonesian IPOs that made public during 2002-2005 periods was examined. The t-test for mean difference was performed to test whether earnings is different. The findings show that earnings level tends to increase in the year closes to the IPO date, but decrease in the next two years after that. The behaviour of cash flows from operating activities is almost similar. However, this study is unable to state that earnings management is strongly evidenced in Indonesian IPO settings.

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Privatisation initial public offerings in Malaysia: Initial premium and long-term performance

Cited by 120 publications

References 22 publications

Pricing Initial Public Offerings in Premature Capital Markets: The Case of Hungary

Pricing Initial Public Offerings in Premature Capital Markets: The Case of Hungary

The Financial Performance Of Privatised Firms: Evidence From Three Transition Economies

Earnings and Cash Flows Behaviour in Indonesian Initial Public Offerings

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