Measurement of long run Initial Public Offerings (IPOs) towards pricing performance using Buy-And-Hold-Abnormal-Return (BHAR) / Norzawanah Nawan

This paper in investigate the relationships between market volatility, offer price to book value, offer price, and issue proceeds toward buy-and-hold abnormal returns (BHAR) strategy. The purpose of the study is to measure the performance of the IPOs price in the long-run. The data collected in order to obtain the result is retrieved from Kuala Lumpur Stock Exchange (KLSE) which comprises of 173 total observations from the period of 1st March to 28th April 2017. These IPOs has reached 1 year anniversary from their listing day in the public trading. The result was found that offer price to book value and issue proceeds are able to explain the pricing performance of the IPO. While, the market volatility and offer price do not have a relationship towards the pricing performance. Based from the findings, both problem statements have been answered. It can be concluded that the daily data able to predict the pricing performance of the IPOs.