After-market liquidity and ipos underpricing: evidence from shari'ah and non shari'ah-based firms
| Main Authors: | Ramli, Ishak, Suherman, Suherman |
|---|---|
| Format: | Article PeerReviewed Book |
| Bahasa: | eng |
| Terbitan: |
, 2010
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| Subjects: | |
| Online Access: |
http://repository.untar.ac.id/1584/1/Ishak%20Ramli%20%28%2001-E%20%29.pdf http://repository.untar.ac.id/1584/ |
Daftar Isi:
- The underpricing of initial public offerings (IPOs) is generally explained with asynunetric information and risk. We complement these traditional explanations with a new theory proposed by Ellul and Pagano (2006) where investors worry also about the after-market illiquidity that may result from asynunetric information after the IPO. The less liquid the after-market is expected to be, the larger will be the IPO underpricing. The samples are the 41 IPOs carried out between 2001-2005. The samples are 7 Shari'ah-based firms. and 34 non Shariah-based firms'. Shariah-based firms are those included in Jakarta Islamic Index (nI), at least one period (one semester). Regression results show that the relationship betwee!l after-market liquidity and underpricing is insignificant unless we use trading frequency as proxy for liquidity for non Shariah-based firms.