Asian Academy of Management Journal of Accounting and Finance, 2021
This study investigates the role of corporate governance in influencing the debt financing decisi... more This study investigates the role of corporate governance in influencing the debt financing decision of 198 non-financial listed companies in Sri Lanka from 2009 to 2016. Sri Lanka’s corporate governance (CG) code promotes dispersed ownerships, larger board size and balance of power and authority through various means, such as exclusivity between the Chief Executive Officer and Chairperson and the independent Board composition. This study tests the role of CG through four indicators while controlling for other firm-specific variables. Results of the two-step system Generalized Method of Moments on a balance panel data shows that the effect of CG indicators on financing decision depends on the financing terms. In general, the influence of CG indicators is significant on the two debt financing measurements, except for managerial ownership when investments in assets are involved. This influence appears eminent in predicting the debt ratio, although the effect is not necessarily consiste...
International Journal of Accounting and Finance, 2019
This study examines the influence of winners' curse phenomenon on flipping activity through a win... more This study examines the influence of winners' curse phenomenon on flipping activity through a winners' curse measurement proposed in Amihud et al. (2003). The study defines winners' curse using allocation rate (ALLOC j) which is as the natural log of the reciprocal of investor demand or oversubscription ratio. In a view, the presence of winners' curse in an IPO market leads to high flipping activities indicating that new IPO subscribers are not willing to retain the allocated IPOs for longer term. However, from another view where high ALLOC j could also reflect IPOs with low demand, the immediate trading activity by the new subscribers is not possible to be done. The latter view suggests that ALLOC j should produce low flipping activities. Using a sample of 381 IPOs issued in Bursa Malaysia from January 2000 to December 2013, the cross-sectional multiple regression analyses results report that ALLOC j relate significantly and negatively to flipping activity. The significant relationship supports the latter view that uninformed investors are more likely to win big IPOs which are not demanded by the informed investors. Therefore, the lower demanded IPOs produce low flipping activities.
Asian Academy of Management Journal of Accounting and Finance, 2021
This study investigates the role of corporate governance in influencing the debt financing decisi... more This study investigates the role of corporate governance in influencing the debt financing decision of 198 non-financial listed companies in Sri Lanka from 2009 to 2016. Sri Lanka’s corporate governance (CG) code promotes dispersed ownerships, larger board size and balance of power and authority through various means, such as exclusivity between the Chief Executive Officer and Chairperson and the independent Board composition. This study tests the role of CG through four indicators while controlling for other firm-specific variables. Results of the two-step system Generalized Method of Moments on a balance panel data shows that the effect of CG indicators on financing decision depends on the financing terms. In general, the influence of CG indicators is significant on the two debt financing measurements, except for managerial ownership when investments in assets are involved. This influence appears eminent in predicting the debt ratio, although the effect is not necessarily consiste...
International Journal of Accounting and Finance, 2019
This study examines the influence of winners' curse phenomenon on flipping activity through a win... more This study examines the influence of winners' curse phenomenon on flipping activity through a winners' curse measurement proposed in Amihud et al. (2003). The study defines winners' curse using allocation rate (ALLOC j) which is as the natural log of the reciprocal of investor demand or oversubscription ratio. In a view, the presence of winners' curse in an IPO market leads to high flipping activities indicating that new IPO subscribers are not willing to retain the allocated IPOs for longer term. However, from another view where high ALLOC j could also reflect IPOs with low demand, the immediate trading activity by the new subscribers is not possible to be done. The latter view suggests that ALLOC j should produce low flipping activities. Using a sample of 381 IPOs issued in Bursa Malaysia from January 2000 to December 2013, the cross-sectional multiple regression analyses results report that ALLOC j relate significantly and negatively to flipping activity. The significant relationship supports the latter view that uninformed investors are more likely to win big IPOs which are not demanded by the informed investors. Therefore, the lower demanded IPOs produce low flipping activities.
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Papers by Assoc. Prof. Dr. Ruzita Abdul Rahim