Lock up provision: implication for IPO market in Malaysia / Muhamad Sazfizal Sajidin

The research paper is conducted to find out the reaction of price and volume of IPOs towards the expiration of lock up date in Malaysia. The reaction of price is measured by the abnormal return while the reaction of price is measured by the abnormal volume. The data required is retrieved from DataStream and being calculated with Microsoft Excel which comprises 22 companies from ACE market. The companies is selected from year 2010 to 2015 and only companies that are still listed in Bursa Malaysia is chosen. The companies is selected by comparing the all the IPO companies with the newspaper in the board. The time frame of the study is 30 days before and 30 days after the expiration date of lock up provision. Methodology used in this research is t-test to determine the significant of average abnormal return and average abnormal volume. The findings of this study shows that there are no reaction on price or volume around the 30 days of the expiry date. This study is hoped will help the investor or any Malaysia market participation especially in the IPO market to notice the situation in Malaysia market regarding the lock up provision.