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2. PHD Thesis / Tesis PHD
3. Graduate School of Business / Pusat Pengajian Siswazah Perniagaan

Title:	Firm performance, timing effect and investor sentiment of IPOs that subsequently issue equity offers
Authors:	Zarina Mohd. Zaki (ZP00060)
Supervisor:	Rasidah Mohamad Said, Assoc. Prof. Dr.
Keywords:	Initial Public Offering Going public (Securities)
Issue Date:	5-Sep-2017
Description:	The dynamics of raising capital and the Initial Public Offering (IPO) firm performance, and the intention to re-issue equity capital immediately after IPO firms being listed are widely unknown within the contexts of emerging countries. The widely available western literature on similar topics lend several determinants of such intention that include market timing, demand for capital, and financial performance of the issuing firms. Apart from behavioural reasons, newly public listed companies that raised funds through IPO may re-issue their equities through seasoned equity offerings, partially because of dire and unexpected financial needs in the short period of time post listing. These sudden needs for financial raising indicate serious inefficiency of fund management. However, it left no knowledge about capital issuance amidst the presence of strong wave of market sentiment and differential regulatory requirements. In addition, similar evidences are unknown in an emerging market setting for firms that belong to different industry categories. The present study envisages differently from the existing research that, especially for emerging countries, market sentiment helps forming the demand for capital to take advantage of changes in market condition. Hence, alongside the conventional financial variables, the study aims to examine the influence of market timing and investor sentiment on the performance of the firms that raise capital immediately after initial public offerings. Using balanced panel data from 143 Malaysian IPOs listed on Bursa Malaysia for the period of year 2004 to 2015, this study utilized static framework to provide an insight of the IPO firm performance and the relationship with the market timing and investor sentiment. In this study, timing are considered proxies by returns of the IPOs from three different dimensions. Investor sentiment was measured by sentiment index developed based on three IPOs proxies. The newly developed sentiment index aims to be a major contribution of this study as it employed a panel data cross-section method as compared to the existing sentiment index based on time series as developed by Fauzias et al. (2013). The variables and relationships were controlled for the size of the firms and the listing board. Pre and post 2008 financial crisis were also considered to verify any impact on the study period. The result of this study indicates that there is a significant positive relationship between timing and firm performance. It supports the market timing theory where managers will consider firm value; undervaluation or overvaluation in their equity issuance or financing decision. Firm performance tends to be insignificantly negative with tangibility, and negatively significant when timing proxy is in excess return. Firm performance has a positive significant relationship with growth opportunities and profitability. Consistent with previous studies, the result of this study seems to support the notion that firms tend to be underperforming when sentiment is high and vice versa. The finding of this study would be a suitable reference for firm managers financing decision and future investment strategy.,Ph.D.
Pages:	162
Call Number:	HG4028.S7Z343 2017 tesis
Publisher:	UKM, Bangi
Appears in Collections:	Graduate School of Business / Pusat Pengajian Siswazah Perniagaan

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