Audit Quality and IPO Underpricing

This study extends the previous researchers on the underpricing by examining the association between audit quality and level of underpricing. The data are from 152 companies listed on Bursa Malaysia from the period of 2005 to 2009. The level of underpricing in Malaysia is 14.77% during the period....

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Main Author:	Tengku Rahimah, Tengku Arifin
Format:	Thesis
Language:	eng
Published:	2010
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/2528/1/Tengku_Rahimah_Tengku_Arifin.pdf
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id	my-uum-etd.2528
record_format	uketd_dc
spelling	my-uum-etd.25282013-07-24T12:16:25Z Audit Quality and IPO Underpricing 2010-10 Tengku Rahimah, Tengku Arifin Ahmad Zaluki, Nurwati Ashikkin College of Business (COB) College of Business HG Finance This study extends the previous researchers on the underpricing by examining the association between audit quality and level of underpricing. The data are from 152 companies listed on Bursa Malaysia from the period of 2005 to 2009. The level of underpricing in Malaysia is 14.77% during the period. The study specifically investigates the impact of audit quality proxied by Big 4 audit firms, industry-specialized audit firms and international audit firms. The finding of this study indicates that Big 4 auditor including its local affiliates is significantly and positively associated with underpricing. However, if the affiliates are excluded in measuring the Big 4 auditor, it is significantly and negatively associated with underpricing. While the others proxies (industry-specialized auditor and international auditor) are negatively associated with underpricing. The result implies that Malaysian investors differentiate the services provided by Big 4 and local firms. They assume the quality of the audit to be lower if there is an involvement by the local firms in the audit processes. Besides, the underwriter reputation is also significantly associated with underpricing, indicating that the ex ante uncertainty do not reduce although the reputable underwriter is engaged by the IPO companies. 2010-10 Thesis https://etd.uum.edu.my/2528/ https://etd.uum.edu.my/2528/1/Tengku_Rahimah_Tengku_Arifin.pdf application/pdf eng validuser http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000765188 masters masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng
advisor	Ahmad Zaluki, Nurwati Ashikkin
topic	HG Finance
spellingShingle	HG Finance Tengku Rahimah, Tengku Arifin Audit Quality and IPO Underpricing
description	This study extends the previous researchers on the underpricing by examining the association between audit quality and level of underpricing. The data are from 152 companies listed on Bursa Malaysia from the period of 2005 to 2009. The level of underpricing in Malaysia is 14.77% during the period. The study specifically investigates the impact of audit quality proxied by Big 4 audit firms, industry-specialized audit firms and international audit firms. The finding of this study indicates that Big 4 auditor including its local affiliates is significantly and positively associated with underpricing. However, if the affiliates are excluded in measuring the Big 4 auditor, it is significantly and negatively associated with underpricing. While the others proxies (industry-specialized auditor and international auditor) are negatively associated with underpricing. The result implies that Malaysian investors differentiate the services provided by Big 4 and local firms. They assume the quality of the audit to be lower if there is an involvement by the local firms in the audit processes. Besides, the underwriter reputation is also significantly associated with underpricing, indicating that the ex ante uncertainty do not reduce although the reputable underwriter is engaged by the IPO companies.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Tengku Rahimah, Tengku Arifin
author_facet	Tengku Rahimah, Tengku Arifin
author_sort	Tengku Rahimah, Tengku Arifin
title	Audit Quality and IPO Underpricing
title_short	Audit Quality and IPO Underpricing
title_full	Audit Quality and IPO Underpricing
title_fullStr	Audit Quality and IPO Underpricing
title_full_unstemmed	Audit Quality and IPO Underpricing
title_sort	audit quality and ipo underpricing
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2010
url	https://etd.uum.edu.my/2528/1/Tengku_Rahimah_Tengku_Arifin.pdf
_version_	1747827366863831040

Audit Quality and IPO Underpricing

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