What is it about?
This study investigates whether Sharia status can serve as a reliable indicator of firm quality for investors evaluating IPOs in the Malaysian market, where information asymmetry is prevalent. By signaling firm quality, Sharia status can help investors make more informed decisions and potentially reduce underpricing, which is a common issue in IPOs due to the difficulty in assessing true value.
Featured Image
Photo by Chinh Le Duc on Unsplash
Why is it important?
Despite the widespread acceptance of Sharia-compliant status both in Asia and globally. The existing literature has largely emphasized the potential of Sharia-compliant status to signal the quality of the issuing firm and mitigate the information asymmetry surrounding its offerings. This research stands as one of the pioneering efforts to examine the signalling role of Sharia-compliant status within the domain of the IPO market.
Perspectives
Through this research I aim to provide prospective investors in the Malaysian IPO market with valuable insights into potential signals that can aid in making informed investment decisions
Ali Albada
Sohar University
Read the Original
This page is a summary of: An insight into the signaling role of Sharia status: a case from an emerging IPO market, International Journal of Islamic and Middle Eastern Finance and Management, August 2024, Emerald,
DOI: 10.1108/imefm-08-2023-0290.
You can read the full text:
Contributors
The following have contributed to this page
