Family Ownership, Related-Party Transactions and Earnings Quality

Sa’adiah Munir (), Norman Mohd Saleh, Romlah Jaffar and Puan Yatim
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Sa’adiah Munir: School of Business, Monash University Sunway Campus, Jalan Lagoon Selatan, 46150 Bandar Sunway, Selangor
Norman Mohd Saleh: School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor
Romlah Jaffar: School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor
Puan Yatim: Graduate School of Business, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor

Asian Academy of Management Journal of Accounting and Finance (AAMJAF), 2013, vol. 9, issue 1, 129-153

Abstract: This paper examines the aftermarket trading volume following an initial public offering (IPO) in a sample of 243 IPOs listed on Bursa Malaysia between June 2003 and June 2008. Specifically, this study investigates the degree of flipping activity and its relationship with six ex-ante variables including IPO initial returns. Consistent with previous studies, the result of the cross-sectional multiple regression reveals a significantly strong positive relationship between initial returns and flipping activity for IPOs. Initial returns also seem to influence the subsequent week’s trading volume, but the influence is completely absorbed by flipping activity. The results also show that both institutional investor participation and offer size have significant influences on flipping activity. The results of this study imply that the Malaysian IPO market experiences active flipping activity that, in turn, has a significant role in predicting the subsequent trading activity.

Keywords: Earnings quality; related-party transactions; family firms; accruals; Malaysia (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:usm:journl:aamjaf00901_129-153

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