Do Malaysian Initial Public Offerings (IPOs) Survive in The After-Market?

Authors

  • Wahidah Shari Institute of Syariah Governance and Islamic Finance (ISGaIF), Islamic Business School, Universiti Utara Malaysia

Keywords:

IPO, survival, delisting, going public, Malaysia

Abstract

In recent years, the survival of public companies after their initial public offering (IPO) has gained attention among academic researchers. Existing empirical studies, however, show a substantial variation in the survival rate across countries and periods. This study inspects the survival of Malaysian IPOs from 2002 to 2013 (385 IPOs). Surviving firms are the IPO firms that have continued their trading until 31st December 2020. The Kaplan Meier analysis reveals that these IPOs have a noticeably lower failure rate than those in the US and UK. Investigation into the factors of IPO survival using the accelerated failure time (AFT) model shows firm size, percentage of insider ownership, and dummy variable of ACE market significantly
influence post-IPO survival in the Malaysian market. Findings of this study
help investors to better understand the life of public firms and predict the
survivability of those firms.

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Published

2022-07-27

How to Cite

Shari, W. (2022). Do Malaysian Initial Public Offerings (IPOs) Survive in The After-Market?. SOUTHEAST ASIAN JOURNAL OF ECONOMICS, 10(2), 145–179. Retrieved from https://so05.tci-thaijo.org/index.php/saje/article/view/260622

Issue

Vol. 10 No. 2 (2022): Southeast Asian Journal of Economics, Vol.10 No.2 (August 2022)

Section

Original Articles

License

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