The share price perfomance of IPOs companies listed on the Second Board of the Kuala Lumpur Stock Exchange

Abstract

This study extends the existing empirical literature on initial public offerings by providing new evidence using IPOs of companies listed on the Second Board of the Kuala Lumpur Stock Exchange. The methodology employed in this study is the market model with constrained parameters a = 0 and 6 = 1. The results of this study provide some support for the presence of fads. It also indicates that regardless of whether the initial-day return is significantly pd positive or not, the new issues, on average, underperform the market in the long run.