Prestige Signals in IPOs: A Comparative Analysis of Sharia-Compliant vs. Non-Sharia-Compliant Offerings

Ali Albada, Khalid Al. Qatiti, Nurhatiah A. Chukari, Nurhuda Nizar and Yusuf Karbhari ()
Additional contact information
Ali Albada: Sohar University
Khalid Al. Qatiti: Sohar University
Nurhatiah A. Chukari: Universiti Sains Islam Malaysia
Nurhuda Nizar: Universiti Teknologi MARA
Yusuf Karbhari: Cardiff University

Chapter Chapter 15 in Islamic Financial Markets and Institutions, 2025, pp 317-334 from Springer

Abstract: Abstract The aims of this empirical study are twofold. First, we investigate whether religiously motivated Sharia-compliant IPOs influence the initial returns of IPOs under the signalling theory assumptions. Second, we examine the influencing effect of prestige signals on IPO initial returns for both Sharia- and non-Sharia-compliant IPOs. Our study sample covers the period from January 2000 to December 2018 and includes a total of 453 IPOs, of which 267 IPOs operate under Sharia-compliant status. The results find compelling evidence that Sharia-compliant status does not significantly influence initial returns, but board reputation and underwriter reputation does impact initial returns under both the Sharia sample and non-Sharia sample, respectively. In addition, Sharia-compliant IPOs are predominantly driven by demand, supply, offer price, and listing board, while non-Sharia IPOs are motivated by demand, supply, offer price, and risk.

Keywords: Signalling; Sharia compliance; Emerging markets; Information asymmetry; Initial public offerings (IPOs); Quantile regression; Prestige signals (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-981-96-8650-6_15

Ordering information: This item can be ordered from
http://www.springer.com/9789819686506

DOI: 10.1007/978-981-96-8650-6_15

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().