Proceedings of the Tegal International Conference on Applied Social Science & Humanities (TICASSH 2022)

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Disclosure of IPO Proceeds and Survival of Malaysian Listed Companies

Authors
Norliza Che-Yahya1, *, Siti Sarah Alyasa-Gan1
1Faculty of Business and Management, Universiti Teknologi MARA, Puncak Alam, Selangor, Malaysia
*Corresponding author. Email: norliza9911@uitm.edu.my
Corresponding Author
Norliza Che-Yahya
Available Online 11 November 2022.
DOI
10.2991/978-2-494069-09-1_47How to use a DOI?
Keywords
IPO proceeds; Growth Opportunities; Debt repayment; Working capital; Survival
Abstract

This study investigates the impact of IPO proceeds utilization disclosure on the survival of 423 Malaysian listed firms from 2000 to 2014. Following the declining trajectory of total listed businesses with active status in the Malaysian market since 2006, this research evaluates the role of IPO proceeds, i.e., the percentage of IPO proceeds and time frame of the application on the post-IPO survival of Malaysian listed companies. By applying Kaplan-Meier (K-M) survival analysis model, this study discovered that 69.03% of companies survive within three years, 59.81% sustain in five years, and 53.18% survive within seven years after their Initial Public Offering (IPO). Further studies show that companies should be able to allocate their IPO proceeds equally to each classification (growth potential, debt repayment, and working capital) for increased survivability and a longer median survival period. Companies with a longer time frame (more than 24 months) utilizing development potential and debt repayment have better survivability and a longer median survival time. In contrast, companies that have used working capital for fewer than 24 months have higher survivability and a longer median survival duration.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Tegal International Conference on Applied Social Science & Humanities (TICASSH 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
11 November 2022
ISBN
978-2-494069-09-1
ISSN
2352-5398
DOI
10.2991/978-2-494069-09-1_47How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Norliza Che-Yahya
AU  - Siti Sarah Alyasa-Gan
PY  - 2022
DA  - 2022/11/11
TI  - Disclosure of IPO Proceeds and Survival of Malaysian Listed Companies
BT  - Proceedings of the Tegal International Conference on Applied Social Science & Humanities (TICASSH 2022)
PB  - Atlantis Press
SP  - 403
EP  - 412
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-09-1_47
DO  - 10.2991/978-2-494069-09-1_47
ID  - Che-Yahya2022
ER  -