The effect of accountant reputation on initial public offerings in Malaysia

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 sto...

Full description

Bibliographic Details
Main Authors: Ong, Tze San, Teh, Boon Heng, Yap, Voon Choong
Format: Article
Language:English
Published: Indian Institute of Economics 2010
Online Access:http://psasir.upm.edu.my/id/eprint/17066/
http://psasir.upm.edu.my/id/eprint/17066/1/The%20effect%20of%20accountant%20reputation%20on%20initial%20public%20offerings%20in%20Malaysia.pdf
_version_ 1848843137789722624
author Ong, Tze San
Teh, Boon Heng
Yap, Voon Choong
author_facet Ong, Tze San
Teh, Boon Heng
Yap, Voon Choong
author_sort Ong, Tze San
building UPM Institutional Repository
collection Online Access
description 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.
first_indexed 2025-11-15T08:10:15Z
format Article
id upm-17066
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T08:10:15Z
publishDate 2010
publisher Indian Institute of Economics
recordtype eprints
repository_type Digital Repository
spelling upm-170662016-02-01T00:04:07Z http://psasir.upm.edu.my/id/eprint/17066/ The effect of accountant reputation on initial public offerings in Malaysia Ong, Tze San Teh, Boon Heng Yap, Voon Choong 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. Indian Institute of Economics 2010-10 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/17066/1/The%20effect%20of%20accountant%20reputation%20on%20initial%20public%20offerings%20in%20Malaysia.pdf 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
spellingShingle Ong, Tze San
Teh, Boon Heng
Yap, Voon Choong
The effect of accountant reputation on initial public offerings in Malaysia
title The effect of accountant reputation on initial public offerings in Malaysia
title_full The effect of accountant reputation on initial public offerings in Malaysia
title_fullStr The effect of accountant reputation on initial public offerings in Malaysia
title_full_unstemmed The effect of accountant reputation on initial public offerings in Malaysia
title_short The effect of accountant reputation on initial public offerings in Malaysia
title_sort effect of accountant reputation on initial public offerings in malaysia
url http://psasir.upm.edu.my/id/eprint/17066/
http://psasir.upm.edu.my/id/eprint/17066/1/The%20effect%20of%20accountant%20reputation%20on%20initial%20public%20offerings%20in%20Malaysia.pdf