Ali Albada, Soo-Wah Low and Othman Yong
The purpose of this paper is to examine the effects of prestige signals measured by the reputations of the underwriter, auditor and board size on the heterogeneity of investor…
Abstract
Purpose
The purpose of this paper is to examine the effects of prestige signals measured by the reputations of the underwriter, auditor and board size on the heterogeneity of investor belief about the true value of IPO in the Malaysian IPO market.
Design/methodology/approach
This study employs a sample of 281 IPOs issued between January 2000 and December 2015. The relationship between prestige signals and investor heterogeneity, measured by first-day price range of IPOs, is analysed using cross-sectional regression and quantile regression technique.
Findings
Of the three prestige signals, the findings show that only underwriter reputation and board size have significant negative relationships with IPO first-day price range. This implies that IPOs underwritten by reputable underwriters and issuing firms with larger board members have lower heterogeneity of opinion among investors. The findings also show that underwriter and auditor reputations have negative relationship with IPO initial return, suggesting that these prestige signals help to reduce IPO under-pricing, which is a direct cost of raising capital for the issuing firm. Furthermore, the results indicate that offer price, initial return, over-subscription ratio and private placement are associated with higher first-day price range. However, the findings on offer size suggest that larger IPO offer size is associated with lower first-day price range. Overall, the findings suggest that firm’s prestige signals reduce opinion heterogeneity among investors and that lower investors’ heterogeneity leads to lower IPO under-pricing cost for issuing firms.
Originality/value
Despite the importance of underwriter, auditor and board member reputations in signalling firm’s quality and reducing the level of information asymmetry of the listing firm’s issues, research on the effects of prestige signals on investor heterogeneity remains unexplored. This study investigates the role of prestige signals in influencing investors’ heterogeneity in Malaysia. The authors conjecture that underwriter, auditor and board member with higher reputations are associated with lower levels of opinion heterogeneity among IPO investors.
Details
Keywords
Ali Albada, Othman Yong and Soo-Wah Low
The purpose of this paper is to examine whether initial public offering (IPO) over-subscription is a function of firm’s prestige signals conveyed by third parties with…
Abstract
Purpose
The purpose of this paper is to examine whether initial public offering (IPO) over-subscription is a function of firm’s prestige signals conveyed by third parties with reputational capital such as underwriter, auditor and independent non-executive board member.
Design/methodology/approach
The relationship between prestige signals and over-subscription ratio (OSR) of IPOs is analysed using a cross-sectional regression based on a sample of 393 IPOs issued between January 2000 and December 2015.
Findings
The results indicate that IPOs underwritten by reputable underwriters have lower OSR than those underwritten by non-reputable underwriters. While issuer engages reputable underwriter to certify firm quality to reduce information asymmetry, the action brings with it lower initial returns for its IPO. Investors interpret the signal conveyed by issuer’s choice of underwriter from under-pricing perspective and respond accordingly by reducing IPO demand. This implies that investors regard under-pricing as a more valuable signal than firm quality signal associated with underwriter reputation. The findings also indicate that over-subscription increases in IPOs that have above average initial returns and higher institutional participation. Issuing firms that go public in a period of high IPO volume are associated with low OSR.
Originality/value
This is the first paper to examine the relationship between the prestige signals and OSR of IPOs in the Malaysian context.
Details
Keywords
Ali Hauashdh, Junaidah Jailani, Ismail Abdul Rahman and Najib AL-fadhali
In recent years, there have been many concerns about issues surrounding building maintenance, which are continually increasing. However, there is a lack of comprehensive studies…
Abstract
Purpose
In recent years, there have been many concerns about issues surrounding building maintenance, which are continually increasing. However, there is a lack of comprehensive studies on building maintenance issues, their effects and the way forward. Therefore, the purpose of this paper is to carry out a comprehensive review of building maintenance issues, their effects and the way forward. It also aims to develop a conceptual model that can support future research.
Design/methodology/approach
A systematic review of the literature published from 2009 to 2019 was carried out. Five relevant databases were searched, based on this study's search terms, and a narrative synthesis of the results from the included studies was carried out. Studies were eligible for inclusion if they fulfilled the inclusion criteria of this systematic review.
Findings
This study has identified and classified building maintenance issues, their effects and the way forward, and also developed a conceptual model that demonstrates the association between issues, their effects and the way forward. The way forward of the conceptual model focuses on effective management, technical capability, development of human resources and cost optimisation.
Originality/value
This paper addresses an important topic: the aspect in which it differs from existing studies is that, in the latter, the researchers studied a single sub-issue, whereas this systematic review includes a comprehensive study of building maintenance issues. Furthermore, this review has demonstrated how the way forward can moderate issues and their effects.
Details
Keywords
Ruzita Abdul Rahim and Othman Yong
The purpose of this paper is to investigate the initial return patterns of Malaysian initial public offerings (IPOs) and whether shari'a‐compliant status would alter such patterns.
Abstract
Purpose
The purpose of this paper is to investigate the initial return patterns of Malaysian initial public offerings (IPOs) and whether shari'a‐compliant status would alter such patterns.
Design/methodology/approach
The effect of shari'a‐compliant status on the patterns of initial return of IPOs is analyzed using a sample of 386 IPOs issued between January 1999 and December 2007.
Findings
The preliminary results indicate that over the study period, the initial returns of Malaysian IPOs drop substantially from 94.91 percent reported from the pre‐crisis period of 1990‐1998 to 31.99 percent, a level more comparable to that reported in advanced markets. Since the initial returns do not revert to pre‐crisis levels, the new low IPO underpricing trend is more likely to be associated with the removal of pricing restraints. The results of regression analyses on the full sample, however, suggest that there is no drastic change with respect to factors that drive initial returns in Malaysian IPOs. With regards to shari'a‐compliant status, IPOs of this subsample show similar profiles to those of non‐shari'a counterparts. However, other than demand, the two subsamples are driven by different factors. Initial returns of shari'a‐compliant IPOs are driven by the size and type of offers, whereas those of the non‐shari'a IPOs are driven by risks.
Research limitations/implications
Future studies should re‐examine the issue by taking into consideration the extensiveness of a firm's compliance to shari'a rules and other predictor variables.
Originality/value
This paper is one of the first to examine the effect of shari'a‐compliant status on the performance of IPOs.
Details
Keywords
Anuradha Mukherji and Jyotsna Bhatnagar
The study reviews the recent conceptualizations and theorizing of green human resource management (GHRM) and explores GHRM's interconnections with the sustainability literature…
Abstract
Purpose
The study reviews the recent conceptualizations and theorizing of green human resource management (GHRM) and explores GHRM's interconnections with the sustainability literature. The research findings have implications affecting GHRM measurement and design of future studies in the sparsely investigated human resource management (HRM)-environment-sustainability-responsibility spectrum.
Design/methodology/approach
The study uses a narrative style based on a review of quantitative field evidence from 38 recent empirical papers to provide an analytical framework on how the GHRM research agenda has broadened to include aspects of corporate sustainability (CS) and corporate social responsibility (CSR).
Findings
The study finds support from the literature on the impact of environment-related HR initiatives on building long-term capabilities and enhancing firm-specific social outcomes. Further, the study finds that different perspectives used in the conceptualization of GHRM reveal GHRM's differential impact on organization and environmental sustainability underlying GHRM's growing recognition as an important tool for organizations to demonstrate their commitment to being a responsible stakeholder of the socio-economic system.
Originality/value
GHRM scholars would find the review useful as the review provides a detailed explanation of how GHRM problems are defined and measured. The understanding of the process of conceptualization has been identified as a research gap in previous reviews; thus, one of the aims of this paper is to aid further knowledge development by understanding how research has progressed previously. The other benefit of the review is that management practitioners would find the insights useful to align HRM initiatives with organization CS/CSR objectives.
Details
Keywords
Roszaini Haniffa and Mohammad Hudaib
The purpose of this paper is to introduce the new journal and articles in the first issue.
Abstract
Purpose
The purpose of this paper is to introduce the new journal and articles in the first issue.
Design/methodology/approach
The paper attempts to introduce the journal by answering the two “W” questions – what is Islamic accounting and why Islamic accounting research is important. In doing so, it indirectly highlights the need for a specialist journal like Journal of Islamic Accounting and Business Research (JIABR) and the potential research areas.
Findings
Islamic accounting research is still at the infancy stage compared to Islamic banking and finance. One of the reasons is due to lack of exposure of research conducted in the area at international level, ending up with only a few issues getting attention. Similarly, the lack of a platform where researchers interested in the area could showcase the diverse range of research as well as network and get support on their research hindered the progress of research in this area. Hence, JIABR could be the leading journal in the area of Islamic accounting and business research if all papers related to it are channeled in this specialist journal. In this way, researchers in the areas of accounting and business would be more aware of the development and contemporary issues to take the research forward.
Originality/value
This paper is useful to new readers of the journal around the world who are interested but have limited knowledge in the area, and also those who wish to submit to the journal, in that it highlights some potential areas for research.
Details
Keywords
Michael C.P. Sing, David J. Edwards, Arthur W.T. Leung, Henry Liu and Chris J. Roberts
The accuracy and reliability of subjectively assessing a construction project's complexity at the pre-construction stage is questionable and relies upon the project manager's…
Abstract
Purpose
The accuracy and reliability of subjectively assessing a construction project's complexity at the pre-construction stage is questionable and relies upon the project manager's tacit experiences, knowledge and background. The purpose of this paper is to develop a scientifically robust analytical approach by presenting a novel classification mechanism for defining the level of project complexity in terms of work contents (WCs), scope, building structures (BSs) and site conditions.
Design/methodology/approach
Empiricism is adopted to deductively analyze variables obtained from secondary data within extant literature and primary project data to develop project type classifications. Specifically, and from an operational perspective, a two-stage “waterfall process” was adopted. In stage one, the research identified 56 variables affecting project complexity from literature and utilized a structured questionnaire survey of 100 project managers to measure the relevance of these. A total of 27 variables were revealed to be significant and exploratory factor analysis (EFA) is adopted to cluster these variables into six-factor thematic groups. In stage two, data from 62 real-life projects (including the layout and structural plans) were utilized for computing the factor score using the six-factor groups. Finally, hierarchical cluster analysis (HCA) is adopted to classify the projects into collected distinctive groups and each of a similar nature and characteristics.
Findings
The developed theoretical framework (that includes a novel complex index) provides a robust “blueprint platform” for main contractors to compile their project complexity database. The research outputs enable project managers to generate a more accurate picture of complexity at the pre-construction stage.
Originality/value
While numerous research articles have provided a comprehensive framework to define project complexity, scant empirical works have assessed it at the pre-construction stage or utilized real-life project samples to classify it. This research addresses this knowledge gap within the prevailing body of knowledge.
Details
Keywords
Jing Yi Yong, Mohd Yusoff Yusliza, T. Ramayah, Khalid Farooq and Muhammad Imran Tanveer
The study aims to investigate the relationships between green intellectual capital, green human resource management (HRM), and sustainability.
Abstract
Purpose
The study aims to investigate the relationships between green intellectual capital, green human resource management (HRM), and sustainability.
Design/methodology/approach
The research is based on information gathered from 112 large Malaysian manufacturing companies.
Findings
The study findings revealed that green human capital and green relational capital positively influence green HRM. In addition, green HRM positively related to social, environmental and economic performance. Besides, green HRM positively mediates the relationships between green human capital and economic, social and environmental performance. Finally, green relational capital improves sustainability (economic, environmental, and social performance) mediated by green HRM.
Originality/value
The current study contributes to the literature by examining green IC (green human capital, green structural capital, and green relational capital) as an independent variable and green HRM as a mediating variable for sustainability (economic, environmental, and social performance). The findings and recommended for the managers of large manufacturing firms and practitioners to invest in green IC to achieve sustainability through green HRM.
Details
Keywords
Shaista Wasiuzzaman, Fook Lye Kevin Yong, Sheela Devi D. Sundarasen and Noor Shahaliza Othman
When a firm goes public for the first time, its prospectus serves as an important reference for investors. It is required by regulation that the risk factors which have…
Abstract
Purpose
When a firm goes public for the first time, its prospectus serves as an important reference for investors. It is required by regulation that the risk factors which have significant influence on the business be disclosed in the prospectus. The purpose of this study is to analyze how disclosure of these risk factors influences the initial returns of initial public offerings (IPOs).
Design/methodology/approach
To do this, a sample of 96 Malaysian new equity offerings (IPOs) from year 2009 to year 2013 is used. Ordinary least squares regression technique is used to regress initial returns against risk disclosures. Aside from overall risk disclosure, individual dimensions of risk (internal risk, external risk and investment risk) are also considered.
Findings
Results of the regression analyses reveal a direct relationship between the IPO initial returns and the disclosure of risk. Overall risk disclosure is found to be highly significant in influencing initial returns. However, further investigation into the individual group of risks shows that only investment risk is highly significant in influencing IPO initial returns.
Originality/value
The results found in this study are interesting as, unlike prior studies, it is shown that disclosures of internal and external risks are not significant in influencing investors’ actions possibly because of their generalizability, whereas disclosures related to investment risks are significant. Equity of firms which disclose more of its risk factors can be expected to generate higher initial returns.
Details
Keywords
Muhammad Ali, Chin-Hong Puah, Anum Ali, Syed Ali Raza and Norazirah Ayob
The role of green human resource management in Islamic banking remains relatively unexplored. This study focuses on how green human resource management plays a part using…
Abstract
Purpose
The role of green human resource management in Islamic banking remains relatively unexplored. This study focuses on how green human resource management plays a part using intellectual capital and how green human resource improves employee commitment, eco-friendly behavior and environmental performance in Islamic banks.
Design/methodology/approach
This paper integrated two well-established theoretical frameworks, namely, intellectual capital-based view theory and social identity theory. A survey-based research instrument was employed to collect sample data of 231 respondents. To test hypotheses, we considered partial least square structural equation modeling (PLS-SEM)-based approach using SmartPLS.
Findings
The results indicate that green human capital, green structural capital and green relational capital significantly influenced green human resource management. Similarly, green human resource management showed a significant positive impact on employee commitment, eco-friendly behavior and environmental performance. Moreover, this study found significant positive results on the interrelationship between employee commitment, eco-friendly behavior and environmental performance. The outcomes recommend that Islamic bank HR managers and top management should strengthen green human resource management policies. Additionally, the Islamic bank HR department should consider bank intellectual capital and employee social identity while making environment-friendly policies.
Originality/value
This study provides novel contributions by offering some useful guidelines to Islamic bank managers and practitioners. In addition, our research aids general green human resource literature and adds value to promoting a sustainable organization.