Operating Performance of Initial Public Offerings in Malaysia
DOI:
https://doi.org/10.66674/ctb9ee71Keywords:
Initial public offerings (IPOs), operating performanceAbstract
Abstract : This is an empirical study on the operating performance of Malaysian firms after their initial public offerings (IPOs). The study attempts to determine whether there is any significant difference between pre- and post-IPO operating performance. In addition, this study also examines whether pre-IPO factors such as age of firm, size of firm, dilution of ownership, multi-nationality of firm and pre-IPO profitability level determine the firms post-IPO operating performance. Using 162 samples of Malaysian IPOs during 1996 to 2000, a significant difference was found between pre-and post-IPO operating performance when operating return on assets (ROA), total assets turnover (ATO) and return on sales (ROS) were used to measure operating performance. This study also found size of firm and pre-IPO profitability to have a significant relationship with post-IPO operating performance.
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Copyright (c) 2005 Zamri Ahmad, Lim Suh Mei (Author)
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Authors retain copyright and grant Capital Markets Review the right of first publication. Articles are published under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence: https://creativecommons.org/licenses/by/4.0/. This licence permits sharing and adaptation for any purpose, including commercial use, provided appropriate credit is given, a link to the licence is supplied and any changes are indicated. Third-party material excluded from the article's licence must be clearly identified, and authors are responsible for obtaining any required permission.
