Relationship between macroeconomics determinants and initial public offering listed in bursa Malaysia / Muhammad Rasyad Aiman Harizan

The purpose of this paper is to answer the question of whether local macroeconomic variables have any impact on the number of IPO in the emerging market in Malaysia. IPO activity in Malaysia over the past 18 years highlights the economic significance of the Kuala Lumpur stock exchange. In this study of the relationship between macroeconomics determinant and initial public offering (IPO) listed in Bursa Malaysia are using the annual data from World Bank over the period 1990 until 2019. Dependent variables is macroeconomics determinant. Meanwhile the independent variables are interest rate, inflation rate, gross domestic product, and industrial production index. Multiple Linear Regression with time series data sourced from the World Bank Data and Department of Statistic Malaysia (DOSM) is the approached for this analysis. It is suitable carrying out the econometrics test to observed the relationship between macroeconomic determinants and IPO. E-views interactive software package is used to test and analyze the data collected. The evidence of significant negative relationship between interest rate and the number of IPO and a positive relationship between industrial production index and number of IPO are founded. The outcome from this study would given an indicative point of view and could form significance basis for future investor that knowledge about the relationship between macroeconomics determinants and initial public offering listed in Bursa Malaysia.