Sustainable IPO Proceeds' Disclosure and Survival of Companies

Norliza Che Yahya; Siti Sarah Alyasa Gan; Rand Kwong Yew  Low

doi:10.21834/ebpj.v7i21.3695

Authors

Norliza Che Yahya Department of Economics and Financial Studies, Faculty of Business and Management, Universiti Teknologi Mara (UiTM), Puncak Alam Campus, Selangor, Malaysia.
Siti Sarah Alyasa Gan Department of Economics and Financial Studies, Faculty of Business and Management, Universiti Teknologi Mara (UiTM), Puncak Alam Campus, Selangor, Malaysia.
Rand Kwong Yew Low University of Queensland Business School, University of Queensland, Australia

DOI:

https://doi.org/10.21834/ebpj.v7i21.3695

Keywords:

Sustainable IPO Disclosure, IPO Proceeds , Survival Analysis, Malaysia

Abstract

We examine the sustainable disclosure of IPO proceeds on 423 companies' survival in the Malaysian market from 2000 to 2014. Using survival analysis, we find that the companies' survival can be predicted by the proportion of IPO proceeds and their time frame, with debt repayment being the critical driver of companies' survival. We provide empirical support for securities regulators to include strategic use and timeframe of utilization of IPO proceeds in their information disclosure requirements to protect investors' interests and improve companies' post-IPO survival.

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Sustainable IPO Proceeds' Disclosure and Survival of Companies

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