If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractThis article examines the long run performance of initial public offerings (IPOs) in Malaysia over the four-year period between 1992 and 1996. In particular, the study investigates whether the growth/value effect exists. By analysing the sample of 258 IPOs, it can be concluded that IPOs tend to outperform the market with a positive cumulative adjusted market return (CAR) of 41.7% over three years from the listing day. The results are contradictory to general empirical findings in other countries. As expected, growth IPOs underperform value IPOs when the IPOs are sorted using book-to-market equity ratio (B/M), earnings-to-price ratio (E/P) and cashflows-to-price ratio (C/P). Nonetheless, it should be pointed out that both value and growth IPOs generate higher returns than the market. The regression results indicate positive relationship between CAR and book-tomarket equity (B/M). Similar results are derived for earnings-to-price (E/P) and cashflows-to-price (C/P). In addition to this, the size of an IPO is found to be inversely related to CAR.
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