The impact of initial public offering (IPO) attributes, firm-level characteristics and ownership on Malaysian IPO firms’ earnings management

Kalgo, Sani Hussaini; Nahar, Hairul Suhaimi; Noordin, Bany Ariffin Amin

doi:10.21315/aamjaf2022.18.1.10

Cited by 4 publications

(4 citation statements)

References 83 publications

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“…Despite its hard work, the level of liquidity in the secondary market, i.e. the Kuala Lumpur Stock Exchange (KLSE) abide continuously low all through several decades (Ramlee & Ali, 2012). Although the Malaysian stock market is classified as having high market capitalization, yet its trading cost is still among the highest in emerging equity markets along with the Korean stock market (Domowitz, Glen, & Madhavan, 2000).…”

Section: Malaysian Stock Market and Its Liquidity Performancementioning

confidence: 99%

Liquidity Risk Impact on Stock Returns

Musneh

Karim

Arokiadasan

2020

MJBE

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This study investigates the impact of liquidity risk on stock returns in the Malaysian stock exchange using the LCAPM model of Acharya and Pedersen. This research employed firm-level equity data involving 419 continuously listed firms in Bursa Malaysia from January 2000 to December 2018. The study employed LCAPM asset pricing model tested using Fama-Macbeth two-stage cross-sectional regression. The findings suggest that the covariance between stock illiquidity and the market return is not priced in the Malaysian stock market. While, the other explanatory variables are significant in explaining the cross-sectional variations of stock returns, but only two variables; the commonality in liquidity and net liquidity risks are correctly signed. The evidence is limited to Malaysian corporations listed in the Main Market of Bursa Malaysia. These findings show some new evidence on the application of the LCAPM model in the emerging markets by using the closing per cent quoted spread impact (CPQS Impact) of Chung and Zhang (2014) as a measure of illiquidity. This research provides new insights on LCAPM application in the Malaysian stock market.

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Section: Malaysian Stock Market and Its Liquidity Performancementioning

confidence: 99%

Liquidity Risk Impact on Stock Returns

Musneh

Karim

Arokiadasan

2020

MJBE

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“…Some of the studies (e.g. Kalgo, Nahar, and Noordin (2022)) conducted on ownership show improvements in the performance of the institutions that have changed their ownership type or have worked on privatization. Differences in managerial and regulatory motivations, political goals and social commitments of government departments mainly lead to the expectation that the mentioned units have lower performance than those of similar institutions.…”

Section: Introductionmentioning

confidence: 99%

“…On the other hand, by having stronger incentives to gain profit and access to more information, institutional and corporate owners may have better performance (Shahzad, Raju, Farrukh, Kanwal, & Ikram, 2018). In addition, due to lower agency costs, institutions run and controlled by family based organizations should be more efficient than state institutions (Fama & Jensen, 1983;Kalgo et al, 2022). Therefore, the ownership structure can affect the company's Cumulative Abnormal Return (CAR).…”

Section: Introductionmentioning

confidence: 99%

Non-linear relationship between control ownership and cumulative abnormal return: A new predictive tool for firms’ performance

Zandi,

Rahman,

Shahzad

et al. 2023

Nurture

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Purpose: The primary aim of the paper was to find out the non-linear relationship between ownership structure and the Cumulative Abnormal Return (CAR) of companies listed on the Muscat Stock Exchange (MSE) from 2013 to 2020. Design/Methodology/Approach: The Cumulative Abnormal Return (CAR) has been implied to determine the accuracy and ability of investors to predict stock performance and select an investment basket. Findings: The effect of Control Ownership (CO) on Cumulative Abnormal Return (CAR) of Muscat Stock Exchange (MSE) listed companies is negative which indicates that with increasing Control Ownership (CO) of stock, stock returns will fluctuate and Cumulative Abnormal Return (CAR) will decrease. Moreover, the results of the research show that the effect of Control Ownership Squared (CO2) on the Cumulative Abnormal Return (CAR) of Muscat Stock Exchange (MSE) listed companies is positive. Conclusion: The effect of the Herfindahl-Hirschman Index including institutional ownership, the Board of Directors (BOD) and the volume of stock exchanges is significant on the Cumulative Abnormal Return (CAR) of companies listed on the Muscat Stock Exchange (MSE). Practical Implications and Contribution to Literature: This research indicates that by increasing Control Ownership (CO) of the stock, the fluctuations of stocks’ returns and the Cumulative Abnormal Return (CAR) of Muscat Stock Exchange (MSE) listed companies will primarily decrease but the increase in CO will increase the volatility of the corporation’s Cumulative Abnormal Return (CAR). In fact, it was claimed that the relationship between CO and CAR is similar to a U-shaped parabola.

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“…Jadi, sebelum listing IPO, korporasi akan memanipulasi hasil melalui manajemen laba untuk mengelabui investor. (Kalgo et al, 2022).…”

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Manajemen Laba dan Kinerja Operasional Sebelum dan Sesudah IPO Bursa Efek Indonesia

Nany,

Prasetyaningrum,

Pratama

et al. 2023

sosioekons

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The Wilcoxon signed rating test found no significant difference between earnings management and financial performance before the IPO. Since the company's financial health has shown that it doesn't require earnings management, it's optimistic about the initial public offering (IPO), which will attract investors. shareholders that wish to invest. Earnings management before initial public offerings (IPOs) does not affect the rate of return on assets, even if the goal is to boost profits.Untuk pengembangan, perusahaan melakukan IPO. Manajemen laba menarik investor. Manajer mempengaruhi angka keuangan dengan menggunakan penilaian dan transaksi. Penelitian ini mengkaji manajemen laba IPO. Penelitian ini membandingkan kinerja keuangan sebelum dan sesudah IPO. Menggunakan data sekunder dari pengajuan keuangan, 180 perusahaan go public pada 2017-2020. Wilcoxon signed rating test tidak menemukan perbedaan yang signifikan antara manajemen laba dan kinerja keuangan sebelum IPO. Karena kesehatan keuangan perusahaan telah menunjukkan bahwa tidak memerlukan manajemen laba, optimis penawaran umum perdana (IPO), yang akan menarik investor. pemegang saham yang ingin berinvestasi. Manajemen laba sebelum penawaran umum perdana (IPO) tidak memengaruhi tingkat pengembalian aset, meskipun tujuannya adalah untuk meningkatkan laba.

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The impact of initial public offering (IPO) attributes, firm-level characteristics and ownership on Malaysian IPO firms’ earnings management

Cited by 4 publications

References 83 publications

Liquidity Risk Impact on Stock Returns

Liquidity Risk Impact on Stock Returns

Non-linear relationship between control ownership and cumulative abnormal return: A new predictive tool for firms’ performance

Manajemen Laba dan Kinerja Operasional Sebelum dan Sesudah IPO Bursa Efek Indonesia

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