DETERMINANTS OF THE LONG-TERM PERFORMANCE OF MALAYSIAN INITIAL PUBLIC OFFERINGS

Abstract

This study examined the determinants of the long-term performance of 351 initial public offerings (IPOs) launched in Malaysia over
the 2002–2010 period. This paper used a panel regression analysis framework based on the ordinary least squares (OLS) technique to
examine the potential determinants of IPOs’ long-term performance. The findings revealed that the volatility of aftermarket returns, the dummy ACE market and concentration ownership significantly influence the long-term performance of Malaysian IPOs. This paper
offers important implications specifically for investors as the findings can help them understand more about public companies’ long-term performance and how to better predict their performance.