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Open Access
Article
Publication date: 12 June 2023

Chui Zi Ong, Rasidah Mohd-Rashid, Ayesha Anwar and Waqas Mehmood

The main purpose of this study is to examine the disclosure of earnings forecasts in firms' prospectuses to explain investor demands or, in other words, oversubscription rates of…

Abstract

Purpose

The main purpose of this study is to examine the disclosure of earnings forecasts in firms' prospectuses to explain investor demands or, in other words, oversubscription rates of Malaysian initial public offerings (IPOs).

Design/methodology/approach

Ordinary least squares and robust methods were used to examine cross-sectional data comprising 466 fixed-price IPOs reported for the period from January 2000 to February 2020 on Bursa Malaysia.

Findings

The results showed that IPOs with earnings forecasts obtained higher oversubscription rates than those without earnings forecasts. IPOs with earnings forecasts provide value-relevant signals to prospective investors about the good prospects of firms, resulting in an increase in the demand for IPO shares. For the IPO samples listed during the global financial crisis (GFC) period, IPOs with earnings forecasts had negative impacts on the oversubscription rates. These results were robust to quantile methods and the two-stage least squares method.

Research limitations/implications

The research findings provide fresh information for investors regarding the importance of earnings forecasts as a trustworthy signal of a firm’s quality when making share subscription decisions.

Practical implications

The regulator is advised to encourage issuers to include earnings forecasts in their prospectuses since such forecasts help to increase the demand for IPOs.

Originality/value

This study contributes to the literature by offering empirical evidence regarding the signalling impact of earnings forecast disclosures on investor demands for Malaysian IPOs. Moreover, this study provides evidence demonstrating the impact of earnings forecast disclosures on oversubscription rates of Malaysian IPOs during the GFC period.

Details

Journal of Asian Business and Economic Studies, vol. 30 no. 4
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 3 August 2023

Ahmad Hakimi Tajuddin, Shabiha Akter, Rasidah Mohd-Rashid and Waqas Mehmood

The purpose of this study is to examine the associations between board size, board independence and triple bottom line (TBL) reporting. The TBL report consists of three…

Abstract

Purpose

The purpose of this study is to examine the associations between board size, board independence and triple bottom line (TBL) reporting. The TBL report consists of three components, namely, environmental, social and economic indices.

Design/methodology/approach

This study’s sample consists of top 50 listed companies from the year 2017 to 2019 on Tadawul Stock Exchange. Ordinary least squares, quantile least squares and robust least squares are used to investigate the associations between board characteristics and TBL reporting, including its separate components.

Findings

The authors find a significant negative association between TBL reporting and board independence. Social bottom line is significantly and negatively related to board size and board independence. Results indicate that board independence negatively influences the TBL disclosure of companies. Therefore, companies are encouraged to embrace TBL reporting. This suggests that businesses should improve the quality of their reporting while ensuring that voluntary disclosures reflect an accurate and fair view in order to preserve a positive relationship with stakeholders.

Originality/value

The present study explains the evidence for the determinants of the TBL in Saudi Arabia.

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

Article
Publication date: 5 September 2023

Haitian Wei, Rasidah Mohd-Rashid and Chai-Aun Ooi

As a consequence of the proposal of the Carbon Neutral and Carbon Peak policy in 2020, the Chinese Government is paying more attention to developing sustainability performance…

Abstract

Purpose

As a consequence of the proposal of the Carbon Neutral and Carbon Peak policy in 2020, the Chinese Government is paying more attention to developing sustainability performance. This study aims to assess the direct influence of country-level and corporate anti-corruption measures on environmental, social and governance (ESG) and its three dimensions, besides ascertaining the moderating role of firm size.

Design/methodology/approach

This study used the system generalized method of moments on a sample of 820 Chinese listed firms from 2012 to 2021.

Findings

The findings show that country-level and corporate corruption negatively affect ESG performance. Corporate anti-corruption measures have a more pronounced positive influence on the sustainability performance of small firms than large firms due to the limited resources, lower political position and weaker refusal power of small firms.

Research limitations/implications

The study has great implications for governments, corporate boards and ESG rating agencies. Government and corporate boards should mitigate the risks of country-level and corporate corruption to attain sustainable development goals. Rating agencies should add country-level and corporate corruption into the ESG evaluation system.

Originality/value

Some empirical results have proven that anti-corruption measures help reduce the emission of carbon dioxide, but few evidence shows how country-level and corporate corruption affect ESG and its three dimensions.

Details

Journal of Money Laundering Control, vol. 27 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 26 August 2022

Rasidah Mohd-Rashid, Waqas Mehmood, Chai-Aun Ooi, Siti Zakiah Che Man and Chui Zi Ong

Rule of law is essential in reducing corruption in a country. This study aims to investigate the factors contributing to corruption in 41 of the most competitive countries in the…

Abstract

Purpose

Rule of law is essential in reducing corruption in a country. This study aims to investigate the factors contributing to corruption in 41 of the most competitive countries in the Asia-Pacific region by focusing on judicial effectiveness, property rights and government integrity. The moderating role of regulatory quality was also considered in the attempt to explain the association among rule of law and corruption.

Design/methodology/approach

This study used pooled ordinary least squares regression and generalized method of moments-dynamic panel for the robustness test on data of 41 Asia-Pacific countries spanning from 2013 to 2021.

Findings

Property rights and government integrity were found to be negatively significant in explaining corruption. In contrast, the interaction between rule of law and regulatory quality had a significant positive association with corruption. The findings bring to light Asia-Pacific countries’ need for more effective control of corruption.

Practical implications

The authorities should work towards enhancing the countries’ image as corruption-free nations by creating a stable economic and political environment and preserving macroeconomic stability through strengthened rule of law.

Originality/value

Previous research looked at The Association of Southeast Asian Nations and South Asian countries, but little attention was given to Asia-Pacific countries in examining the relationship between rule of law and corruption.

Details

Journal of Money Laundering Control, vol. 26 no. 5
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 8 June 2023

Waqas Mehmood, Anis Ali, Rasidah Mohd-Rashid and Attia Aman-Ullah

The purpose of this study is to look at how Shariah-compliant status and Shariah regulation affect the demand for initial public offerings (IPOs) in Pakistan. The…

Abstract

Purpose

The purpose of this study is to look at how Shariah-compliant status and Shariah regulation affect the demand for initial public offerings (IPOs) in Pakistan. The Shariah-compliant status, which is seen as a method that offers a credible signal to investors, may explain the anomaly in IPO demand.

Design/methodology/approach

This research used multivariate and quantile regression models to assess data from 85 IPOs issued on the Pakistan Stock Exchange between 2000 and 2019.

Findings

Shariah-compliant status has a considerable negative association with IPO demand. Nevertheless, there is a considerable positive association among Shariah regulation and IPO demand. Furthermore, the interaction among regulatory quality and Shariah-compliant status has a considerable strong influence on IPO demand. As a consequence, the findings show that Shariah-compliant firms might possibly attract the attention of investors. Investors were found to concur on the amicability of rigorous rules and permissible Shariah-compliance aspects.

Research limitations/implications

Future studies could analyse the financial ratio benchmark (cash and debt) to determine the Shariah-compliant status and Shariah regulation to better understand the problem of IPO demand in the context of Pakistan.

Practical implications

The outcomes of this research are useful for issuers and underwriters in comprehending the characteristics that influence high and early IPO success. Such knowledge may assist issuers and underwriters in responsibly planning and managing the IPO process.

Social implications

The results may be useful to investors looking for critical information in prospectuses to make the best choice when subscribing to IPOs in Pakistan.

Originality/value

This is one of the first studies to provide empirical data on the links among Shariah-compliant status, Shariah regulation and IPO demand in Pakistan. Furthermore, this research demonstrates the interaction impact of regulatory quality and Shariah-compliant status on IPO demand.

Details

Journal of Money Laundering Control, vol. 27 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

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