The effect of accountant reputation on initial public offerings in Malaysia

Citation

Ong, Tze San and Teh, Boon Heng and Yap, Voon Choong (2010) The effect of accountant reputation on initial public offerings in Malaysia. The Asian Economic Review, 52 (2). pp. 217-230. ISSN 0004-4555

Abstract

This paper assesses the characteristics and the influence of accountants’ reputations on the underpricing of Initial Public Offerings (IPOs) stocks listed in the Main Board and Second Board of the Malaysia Stock Market. The sample data comprises of the first day price and the issue price of IPOs stocks selected from the financial year of 2005, 2006 and 2008. Results showed that there is a significant positive first day return, indicating a certain degree of underpricing in the IPOs stocks. However, there are no significant differences for returns, risks and coefficient of variation among the two groups of IPOs stocks audited respectively by the Big Four and non Big Four accounting firms. That is, IPOs stocks performance in terms of initial first day returns are not influenced by the factor accountants’ reputations.

Download File

Preview

PDF (Abstract)
The effect of accountant reputation on initial public offerings in Malaysia.pdf
Download (48kB) | Preview

Additional Metadata

Item Type:	Article
Divisions:	Faculty of Economics and Management
Publisher:	Indian Institute of Economics
Keywords:	Initial public offerings; IPO; Accountant reputation; Malaysia
Depositing User:	Nabilah Mustapa
Date Deposited:	01 Feb 2016 00:04
Last Modified:	01 Feb 2016 00:04
URI:	http://psasir.upm.edu.my/id/eprint/17066
Statistic Details:	View Download Statistic

Actions (login required)

View Item