nadisah zakaria - Academia.edu (original) (raw)

Papers by nadisah zakaria

Research paper thumbnail of International Journal of Economics and Financial Issues Emerging Markets: Evaluating Graham's Stock Selection Criteria on Portfolio Return in Saudi Arabia Stock Market

Graham's stock selection criteria enable investors to be more cautious in selecting their por... more Graham's stock selection criteria enable investors to be more cautious in selecting their portfolios in order to generate abnormal return. Graham's model was widely examined in various developed market where the stock markets and companies are more mature and economy of the countries are more stable. However, the selection criteria model was not commonly examined in emerging countries despite of their rapid economic growth and diversified sectors in the stocks trading. Hence, this study attempts to investigate the relevance of Graham's stock selection criteria on the portfolio returns of the Saudi Arabia stock market. Saudi Arabia represents the fastest growing market in the Middle East primarily Arabian Gulf Cooperation Council region thus testing the market is justified. The study found that despite of being young and immature stock market, Saudi stock market was able to offer abnormal return to the investors and Graham's model of stock selection is indeed valuable...

Research paper thumbnail of Portfolio Investment in Malaysia and Saudi Arabia

Multidisciplinary Perspectives on Cross-Border Trade and Business, 2022

Several strategies are adopted by investors in lowering the risk of investment while maximising i... more Several strategies are adopted by investors in lowering the risk of investment while maximising its return. Graham's stock selection criteria are noted as one of the best strategies in selecting portfolios by investors. Although the model is universally accepted, it is less commonly practised and examined in emerging markets. Considering the growth of these emerging countries' financial markets, it is worthwhile to investigate the doctrine's effect on investment in these countries. This study endeavours to review the consequence of Graham's stock selection criteria on portfolio returns in the Malaysian and Saudi Arabian stock markets. Each country represents the fastest growing market in their region which justifies this study. The study found that the Malaysian stock market is capable of proffering abnormal returns to investors while the Saudi stock market is capable to offer abnormal returns to investors despite being an undeveloped and immature stock market. The s...

Research paper thumbnail of Emerging Markets: Evaluating Graham’s Stock Selection Criteria on Portfolio Return in Saudi Arabia Stock Market

International Journal of Economics and Financial Issues, 2017

Graham’s stock selection criteria enable investors to be more cautious in selecting their portfol... more Graham’s stock selection criteria enable investors to be more cautious in selecting their portfolios in order to generate abnormal return. Graham’s model was widely examined in various developed market where the stock markets and companies are more mature and economy of the countries are more stable. However, the selection criteria model was not commonly examined in emerging countries despite of their rapid economic growth and diversified sectors in the stocks trading. Hence, this study attempts to investigate the relevance of Graham’s stock selection criteria on the portfolio returns of the Saudi Arabia stock market. Saudi Arabia represents the fastest growing market in the Middle East primarily Arabian Gulf Cooperation Council region thus testing the market is justified. The study found that despite of being young and immature stock market, Saudi stock market was able to offer abnormal return to the investors and Graham’s model of stock selection is indeed valuable to investors.

Research paper thumbnail of The Short and Long-Run Initial Public Offerings (IPOs) Performance in the Emerging Market: Evidence From Saudi Arabia Share Market

Econometric Modeling: International Financial Markets - Emerging Markets eJournal, 2018

This study examines the short-and-long-run share performance of IPO companies listed on the Saudi... more This study examines the short-and-long-run share performance of IPO companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1st January 2000 to 31st August 2017. 45 IPO companies were included in this study. This study employs the event time approach and abnormal returns are calculated using the market-adjusted initial returns for short-run share performance and buy-and-hold abnormal returns (BHAR) for long-run performance. First, our analysis reports under-pricing of IPO shares at Tadawul with a high abnormal initial return of 76.61%. Second, we find over performance of IPO shares in the long-run where the market-adjusted BHAR outperformed both market indices - (i) positive and significant when benchmarked against EWI; and (ii) positive but not significant when benchmarked against VWI. Our findings are consistent with extant literature for the developing countries like Malaysia and Singapore.

Research paper thumbnail of The Short-and-long Run Performance of Mergers and Acquisitions: Evidence From Tadawul

This study examines the short-and-long run share performance of acquirer companies listed on the ... more This study examines the short-and-long run share performance of acquirer companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1 January 2000 to 31 August 2017. Market-adjusted initial returns and buy-and-hold abnormal return methods are employed to measure the abnormal returns of acquirer companies over the short and long-run. The present study finds that: (1) investors could earn positive market adjusted abnormal returns during the few days surrounding the announcement date; (2) investors could earn positive and significant market-adjusted Buy and Hold Abnormal Return (BHAR) for shares that are held up to 36 months following the completion months of M&A events. The presence of abnormal return opportunities that may be exploited by investors during the period following the M&A announcement date and in the three-year holding period following the completion of M&A events might provide valuable insight to individual and institutional investors.

Research paper thumbnail of Long-Term Post-Acquisition Share Performance: The Case of Saudi Stock Exchange

Corporate Finance: Governance, 2018

The present study provides evidence for the long run post-acquisition share performance of acquir... more The present study provides evidence for the long run post-acquisition share performance of acquirer companies traded on Saudi Stock Exchange (Tadawul) for the period of 1998 to 2017. This study employs an event study methodology, a buy-and-hold abnormal return approach (BHAR) to compute the abnormal performance of acquirer companies against the novel market benchmarks: equal-weighted and value-weighted. Using the equal-weighted index, the results showed significant positive market-adjusted BHAR for the share portfolios that are held up to 36 months following the completion of the merger and acquisitions (M&A). The results demonstrate similar patterns when this study switches to value-weighting index. Evidence shows that investors could earn the market-adjusted BHAR of 35.24% (equal-weighted) and 32.42% (value-weighted) if they held share portfolios up to thirty-six-month periods, indicating the presence of abnormal returns opportunities that can be exploited by investors. The findin...

Research paper thumbnail of The short and long-run performance of Shariah-compliant IPOs on Tadawul

Science Proceedings Series, 2019

We examine the short- and long-run financial performance of Sharia-compliant IPO companies in Sau... more We examine the short- and long-run financial performance of Sharia-compliant IPO companies in Saudi Arabia for the period between 2000 and 2017. While the literature on the short-run performance is more consistent in presenting evidence of underpricing (see T. Loughran, Ritter, and Rydqvist, 1994), the evidence for long-run performance have been rather mixed and inconclusive (T. Loughran & Ritter, 1995) between under-and-over-performance outcome. Intrigued by where Saudi Arabia may be positioned on this continuum our analysis indicates that Sharia-compliant IPOs on Tadawul are underpricing with abnormal initial returns of 79.23%. For the long-run performance, our analysis indicates that investors could earn positive and significant market-adjusted BHAR of 14.67% if IPO shares were held over the eighteen-month period following the listing date using the EWI as a market benchmark. The present study would benefit foreign investors and market regulators who are trying to understand the...

Research paper thumbnail of Method of Payments in the Merger and Acquisitions Transaction: The Case of Saudi Arabia

Journal of Reviews on Global Economics, 2019

The performance of mergers and acquisitions companies has been broadly investigated in diverse ad... more The performance of mergers and acquisitions companies has been broadly investigated in diverse advanced share markets primarily in the US and UK economies. However, little evidence has been found in an emerging market like Saudi Arabia. For this reason, this study examines the long-run share performance of acquirer' companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1 st January 2000 to 31 st August 2017. Using the buy-and-hold abnormal return method, the present study finds that the acquirer companies' shares for the cash payment method continues to outperform their counterparts of non-cash payment against the equal-weighted and value-weighted indexes. The presence of abnormal return opportunities that may be exploited by investors in the three-year holding period following the completion of M&A events might provide valuable insight to individual and institutional investors. As there is no national evidence on share performances of acquirer's companies over the long-run period, the present findings add to a growing body of M&A literature.

Research paper thumbnail of The Short and Long-Run Performance of Sharia-Compliant Initial Public Offerings (IPOs) in the Emerging Market: Evidence from the Saudi Arabia Share Market

Journal of Reviews on Global Economics, 2019

This study examines the short-and long-run share performance of 40 Sharia-compliant IPO companies... more This study examines the short-and long-run share performance of 40 Sharia-compliant IPO companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1 st January 2000 to 31 st August 2017. This study employs both market-adjusted initial returns and buy-and-hold abnormal return to measure the share performance of IPOs. First, the analysis shows that Sharia-compliant IPOs are underpricing with abnormal initial returns of 79.23%. Second, the results suggest that investors could earn positive and significant market-adjusted BHAR of 14.67% if they held IPO shares over the eighteen-month period following the listing date when EWI is used as a market benchmark. This study also finds that IPO companies outperformed the VWI although the results are insignificant. The findings on the long-run overperformance contribute to the IPO literature on long-run performance of Sharia-compliant IPOs. The present study would benefit foreign investors and market regulators who are trying to understand the market behaviour in an emerging market.

Research paper thumbnail of Arrangers’ Identity and the Syndicate Structure of Sukuk

Jurnal Ekonomi Malaysia, 2018

The participation of multiple banks and financial institutions in a sukuk (Islamic bonds) issuanc... more The participation of multiple banks and financial institutions in a sukuk (Islamic bonds) issuance reflects a successful process of negotiation of contract terms between the issuer, lead arranger, and other financial institutions. Conventional finance literature suggests that certain banks or non-bank institutions possess unique characteristics that give them a competitive advantage in screening and monitoring debt contracts. Whether or not their uniqueness contributes to the structure of sukuk syndicate is still an empirical question. Therefore, this paper examines the relation between arranger identity and the structure of sukuk syndicate for a sample of 3,462 sukuk tranches. Results of multiple Poisson regressions indicate the certification effect of arrangers where more reputable banks are associated with a larger syndicate size (the number of participant financial institutions). Non-bank institutions are also positively related to the size of syndicate, and this relation is more pronounced for private firms. This implies that such institutions are gaining specialization in screening and monitoring risky contracts. Further, Islamic financial institutions (IFIs) play a limited role in sukuk syndication. One promising avenue for IFIs to build their capacity to assume the role of lead arranger, as the results suggest, is to actively engage reputable conventional banks and non-bank institutions in their syndicated financing activities.

Research paper thumbnail of Method of Payment in Mergers and Acquisitions: The Case of Saudi Arabia

SSRN Electronic Journal, 2018

This study examines the long-run share performance of acquirer’ companies listed on the Saudi Ara... more This study examines the long-run share performance of acquirer’ companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1st January 2000 to 31st August 2017. Using the buy-and-hold abnormal return method, the present study finds that the acquirer companies’ shares for the cash payment method continues to outperform their counterparts of non-cash payment against the equal- weighted and value-weighted indexes. The presence of abnormal return opportunities that may be exploited by investors in the three-year holding period following the completion of M&A events might provide valuable insight to individual and institutional investors. As there is no national evidence on share performances of acquirer’s companies over the long-run period, the present findings add to a growing body of M&A literature.

Research paper thumbnail of Effect of Graham's share selection criteria on portfolio return in emerging markets: case of Malaysian share market

International Journal of Economics and Business Research, 2019

Graham's model has been broadly investigated in diverse advanced share markets primarily in the U... more Graham's model has been broadly investigated in diverse advanced share markets primarily in the USA and Europe as the companies are larger and established in sound economies. However, the selection criteria model is not prevalently examined in emerging countries, regardless of their fast economic growth and diversified sectors in stocks trading. For this reason, this study seeks to analyse the effect of Graham's stock selection criteria on the portfolio returns of the Malaysian stock market. Malaysia's has been recognised as one of the most rapidly growing markets in the Far East region; therefore, testing the market is essential and valid. The study found that notwithstanding its inception in the stock market, the Malaysian stock market was capable of proffering abnormal returns to investors, thus indicating that Graham's model of stock selection is certainly beneficial to investors.

Research paper thumbnail of Do Malaysian Politically Linked Spin-Off Companies Underperformed?

SSRN Electronic Journal, 2014

This study examines the short-run and long-run share return performance of politically-linked com... more This study examines the short-run and long-run share return performance of politically-linked companies in the event of a spin-off during the period January 1980 to April 2011. We find that the group of politically-linked parent companies significantly outperformed the group of non politically-linked companies during the few days surrounding the announcement date even after an adjustment for size. This indicates that the market anticipates increased value for politicallylinked parent"s shareholders and a potential exploitable stock market inefficiency. However, after allowing for size, we observe that spin-offs by the politically-linked entities fail to demonstrate abnormal performance in the long-run period (three-years).

Research paper thumbnail of Spin-Off and Value Creation: The Case of Malaysia

SSRN Electronic Journal, 2014

This paper investigates the short-and long-run share return performance of Malaysian spin-off fir... more This paper investigates the short-and long-run share return performance of Malaysian spin-off firms. Using daily and monthly data, it examines the performance of spin-off firms against the benchmarks of Malaysian indices and matched-firm portfolios. The results show that parent firms significantly outperformed the market during the few days surrounding the announcement date even after adjustment for size. In the long-run analysis over three years, however, we do not find abnormal performance for parents, spun-offs and combined entities. We also find some evidence that the notable positive share returns for parent firms over the short-run period are related to political linkage rather than corporate focus or the size effect. Overall, this research allows us to plausibly argue that the market anticipates both increased value for parent shareholders and exploitable stock market inefficiency in the short-run period but not in the long-run period.

Research paper thumbnail of Firm Performance and Dividend-Related Factors: The Case of Malaysia

Labuan Bulletin of International …, 2007

... Foong, Zakaria & Tan / Labuan Bulletin of International Business & Finance, 5... more ... Foong, Zakaria & Tan / Labuan Bulletin of International Business & Finance, 5, 2007, 97-111 ... Our preliminary analysis support for Smith and Watts (1992) and Gaver and Gaver (1993), that growth firms (Trading/Services sector) have significantly lower dividend yields than non ...

Research paper thumbnail of Do Malaysian spin-offs create value?

Asian Journal of Finance & Accounting, 2012

This paper investigates the short-and long-run share return performance of Malaysian spin-off fir... more This paper investigates the short-and long-run share return performance of Malaysian spin-off firms during the period January 1980 to April 2011. Using daily and monthly data, the study examines the performance of spin-off firms against the benchmarks of Malaysian All-Shares indices. The results show that parent firms significantly outperformed the market during the few days surrounding the announcement date even after adjustment for size. In the long-run analysis of three years, however, and after allowing for size, this research failed to find abnormal performance for either parents or spun-off entities. Overall, the results of this research allow us to plausibly argue that the market anticipates both increased value for parent shareholders and potential exploitable stock market efficiency in the short-run period but not in the long-run.

Research paper thumbnail of Politically linked spin-offs: evidence from Malaysia

International Journal of Bonds and Derivatives, 2016

This study investigates the short- and long-run share return performance of politically linked co... more This study investigates the short- and long-run share return performance of politically linked companies in the event of a spin-off during the period 1980 to 2011. The result shows that the group of politically linked parent companies significantly outperformed the group of non-politically linked companies during the few days surrounding the announcement date even after an adjustment for size. This indicates that the market anticipates increased value for politically linked parent's shareholders and potential exploitable stock market inefficiency. However, after allowing for size, evidence indicates that spin-offs by the politically linked entities do not demonstrate abnormal performance in the subsequent three-year period.

Research paper thumbnail of Do Malaysian Focus-Increasing Spin-Off Firms Underperform?

Asian Academy of Management Journal of Accounting and Finance, 2012

Research paper thumbnail of International Journal of Economics and Financial Issues Emerging Markets: Evaluating Graham's Stock Selection Criteria on Portfolio Return in Saudi Arabia Stock Market

Graham's stock selection criteria enable investors to be more cautious in selecting their por... more Graham's stock selection criteria enable investors to be more cautious in selecting their portfolios in order to generate abnormal return. Graham's model was widely examined in various developed market where the stock markets and companies are more mature and economy of the countries are more stable. However, the selection criteria model was not commonly examined in emerging countries despite of their rapid economic growth and diversified sectors in the stocks trading. Hence, this study attempts to investigate the relevance of Graham's stock selection criteria on the portfolio returns of the Saudi Arabia stock market. Saudi Arabia represents the fastest growing market in the Middle East primarily Arabian Gulf Cooperation Council region thus testing the market is justified. The study found that despite of being young and immature stock market, Saudi stock market was able to offer abnormal return to the investors and Graham's model of stock selection is indeed valuable...

Research paper thumbnail of Portfolio Investment in Malaysia and Saudi Arabia

Multidisciplinary Perspectives on Cross-Border Trade and Business, 2022

Several strategies are adopted by investors in lowering the risk of investment while maximising i... more Several strategies are adopted by investors in lowering the risk of investment while maximising its return. Graham's stock selection criteria are noted as one of the best strategies in selecting portfolios by investors. Although the model is universally accepted, it is less commonly practised and examined in emerging markets. Considering the growth of these emerging countries' financial markets, it is worthwhile to investigate the doctrine's effect on investment in these countries. This study endeavours to review the consequence of Graham's stock selection criteria on portfolio returns in the Malaysian and Saudi Arabian stock markets. Each country represents the fastest growing market in their region which justifies this study. The study found that the Malaysian stock market is capable of proffering abnormal returns to investors while the Saudi stock market is capable to offer abnormal returns to investors despite being an undeveloped and immature stock market. The s...

Research paper thumbnail of Emerging Markets: Evaluating Graham’s Stock Selection Criteria on Portfolio Return in Saudi Arabia Stock Market

International Journal of Economics and Financial Issues, 2017

Graham’s stock selection criteria enable investors to be more cautious in selecting their portfol... more Graham’s stock selection criteria enable investors to be more cautious in selecting their portfolios in order to generate abnormal return. Graham’s model was widely examined in various developed market where the stock markets and companies are more mature and economy of the countries are more stable. However, the selection criteria model was not commonly examined in emerging countries despite of their rapid economic growth and diversified sectors in the stocks trading. Hence, this study attempts to investigate the relevance of Graham’s stock selection criteria on the portfolio returns of the Saudi Arabia stock market. Saudi Arabia represents the fastest growing market in the Middle East primarily Arabian Gulf Cooperation Council region thus testing the market is justified. The study found that despite of being young and immature stock market, Saudi stock market was able to offer abnormal return to the investors and Graham’s model of stock selection is indeed valuable to investors.

Research paper thumbnail of The Short and Long-Run Initial Public Offerings (IPOs) Performance in the Emerging Market: Evidence From Saudi Arabia Share Market

Econometric Modeling: International Financial Markets - Emerging Markets eJournal, 2018

This study examines the short-and-long-run share performance of IPO companies listed on the Saudi... more This study examines the short-and-long-run share performance of IPO companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1st January 2000 to 31st August 2017. 45 IPO companies were included in this study. This study employs the event time approach and abnormal returns are calculated using the market-adjusted initial returns for short-run share performance and buy-and-hold abnormal returns (BHAR) for long-run performance. First, our analysis reports under-pricing of IPO shares at Tadawul with a high abnormal initial return of 76.61%. Second, we find over performance of IPO shares in the long-run where the market-adjusted BHAR outperformed both market indices - (i) positive and significant when benchmarked against EWI; and (ii) positive but not significant when benchmarked against VWI. Our findings are consistent with extant literature for the developing countries like Malaysia and Singapore.

Research paper thumbnail of The Short-and-long Run Performance of Mergers and Acquisitions: Evidence From Tadawul

This study examines the short-and-long run share performance of acquirer companies listed on the ... more This study examines the short-and-long run share performance of acquirer companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1 January 2000 to 31 August 2017. Market-adjusted initial returns and buy-and-hold abnormal return methods are employed to measure the abnormal returns of acquirer companies over the short and long-run. The present study finds that: (1) investors could earn positive market adjusted abnormal returns during the few days surrounding the announcement date; (2) investors could earn positive and significant market-adjusted Buy and Hold Abnormal Return (BHAR) for shares that are held up to 36 months following the completion months of M&A events. The presence of abnormal return opportunities that may be exploited by investors during the period following the M&A announcement date and in the three-year holding period following the completion of M&A events might provide valuable insight to individual and institutional investors.

Research paper thumbnail of Long-Term Post-Acquisition Share Performance: The Case of Saudi Stock Exchange

Corporate Finance: Governance, 2018

The present study provides evidence for the long run post-acquisition share performance of acquir... more The present study provides evidence for the long run post-acquisition share performance of acquirer companies traded on Saudi Stock Exchange (Tadawul) for the period of 1998 to 2017. This study employs an event study methodology, a buy-and-hold abnormal return approach (BHAR) to compute the abnormal performance of acquirer companies against the novel market benchmarks: equal-weighted and value-weighted. Using the equal-weighted index, the results showed significant positive market-adjusted BHAR for the share portfolios that are held up to 36 months following the completion of the merger and acquisitions (M&A). The results demonstrate similar patterns when this study switches to value-weighting index. Evidence shows that investors could earn the market-adjusted BHAR of 35.24% (equal-weighted) and 32.42% (value-weighted) if they held share portfolios up to thirty-six-month periods, indicating the presence of abnormal returns opportunities that can be exploited by investors. The findin...

Research paper thumbnail of The short and long-run performance of Shariah-compliant IPOs on Tadawul

Science Proceedings Series, 2019

We examine the short- and long-run financial performance of Sharia-compliant IPO companies in Sau... more We examine the short- and long-run financial performance of Sharia-compliant IPO companies in Saudi Arabia for the period between 2000 and 2017. While the literature on the short-run performance is more consistent in presenting evidence of underpricing (see T. Loughran, Ritter, and Rydqvist, 1994), the evidence for long-run performance have been rather mixed and inconclusive (T. Loughran & Ritter, 1995) between under-and-over-performance outcome. Intrigued by where Saudi Arabia may be positioned on this continuum our analysis indicates that Sharia-compliant IPOs on Tadawul are underpricing with abnormal initial returns of 79.23%. For the long-run performance, our analysis indicates that investors could earn positive and significant market-adjusted BHAR of 14.67% if IPO shares were held over the eighteen-month period following the listing date using the EWI as a market benchmark. The present study would benefit foreign investors and market regulators who are trying to understand the...

Research paper thumbnail of Method of Payments in the Merger and Acquisitions Transaction: The Case of Saudi Arabia

Journal of Reviews on Global Economics, 2019

The performance of mergers and acquisitions companies has been broadly investigated in diverse ad... more The performance of mergers and acquisitions companies has been broadly investigated in diverse advanced share markets primarily in the US and UK economies. However, little evidence has been found in an emerging market like Saudi Arabia. For this reason, this study examines the long-run share performance of acquirer' companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1 st January 2000 to 31 st August 2017. Using the buy-and-hold abnormal return method, the present study finds that the acquirer companies' shares for the cash payment method continues to outperform their counterparts of non-cash payment against the equal-weighted and value-weighted indexes. The presence of abnormal return opportunities that may be exploited by investors in the three-year holding period following the completion of M&A events might provide valuable insight to individual and institutional investors. As there is no national evidence on share performances of acquirer's companies over the long-run period, the present findings add to a growing body of M&A literature.

Research paper thumbnail of The Short and Long-Run Performance of Sharia-Compliant Initial Public Offerings (IPOs) in the Emerging Market: Evidence from the Saudi Arabia Share Market

Journal of Reviews on Global Economics, 2019

This study examines the short-and long-run share performance of 40 Sharia-compliant IPO companies... more This study examines the short-and long-run share performance of 40 Sharia-compliant IPO companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1 st January 2000 to 31 st August 2017. This study employs both market-adjusted initial returns and buy-and-hold abnormal return to measure the share performance of IPOs. First, the analysis shows that Sharia-compliant IPOs are underpricing with abnormal initial returns of 79.23%. Second, the results suggest that investors could earn positive and significant market-adjusted BHAR of 14.67% if they held IPO shares over the eighteen-month period following the listing date when EWI is used as a market benchmark. This study also finds that IPO companies outperformed the VWI although the results are insignificant. The findings on the long-run overperformance contribute to the IPO literature on long-run performance of Sharia-compliant IPOs. The present study would benefit foreign investors and market regulators who are trying to understand the market behaviour in an emerging market.

Research paper thumbnail of Arrangers’ Identity and the Syndicate Structure of Sukuk

Jurnal Ekonomi Malaysia, 2018

The participation of multiple banks and financial institutions in a sukuk (Islamic bonds) issuanc... more The participation of multiple banks and financial institutions in a sukuk (Islamic bonds) issuance reflects a successful process of negotiation of contract terms between the issuer, lead arranger, and other financial institutions. Conventional finance literature suggests that certain banks or non-bank institutions possess unique characteristics that give them a competitive advantage in screening and monitoring debt contracts. Whether or not their uniqueness contributes to the structure of sukuk syndicate is still an empirical question. Therefore, this paper examines the relation between arranger identity and the structure of sukuk syndicate for a sample of 3,462 sukuk tranches. Results of multiple Poisson regressions indicate the certification effect of arrangers where more reputable banks are associated with a larger syndicate size (the number of participant financial institutions). Non-bank institutions are also positively related to the size of syndicate, and this relation is more pronounced for private firms. This implies that such institutions are gaining specialization in screening and monitoring risky contracts. Further, Islamic financial institutions (IFIs) play a limited role in sukuk syndication. One promising avenue for IFIs to build their capacity to assume the role of lead arranger, as the results suggest, is to actively engage reputable conventional banks and non-bank institutions in their syndicated financing activities.

Research paper thumbnail of Method of Payment in Mergers and Acquisitions: The Case of Saudi Arabia

SSRN Electronic Journal, 2018

This study examines the long-run share performance of acquirer’ companies listed on the Saudi Ara... more This study examines the long-run share performance of acquirer’ companies listed on the Saudi Arabia Stock Exchange (Tadawul) from 1st January 2000 to 31st August 2017. Using the buy-and-hold abnormal return method, the present study finds that the acquirer companies’ shares for the cash payment method continues to outperform their counterparts of non-cash payment against the equal- weighted and value-weighted indexes. The presence of abnormal return opportunities that may be exploited by investors in the three-year holding period following the completion of M&A events might provide valuable insight to individual and institutional investors. As there is no national evidence on share performances of acquirer’s companies over the long-run period, the present findings add to a growing body of M&A literature.

Research paper thumbnail of Effect of Graham's share selection criteria on portfolio return in emerging markets: case of Malaysian share market

International Journal of Economics and Business Research, 2019

Graham's model has been broadly investigated in diverse advanced share markets primarily in the U... more Graham's model has been broadly investigated in diverse advanced share markets primarily in the USA and Europe as the companies are larger and established in sound economies. However, the selection criteria model is not prevalently examined in emerging countries, regardless of their fast economic growth and diversified sectors in stocks trading. For this reason, this study seeks to analyse the effect of Graham's stock selection criteria on the portfolio returns of the Malaysian stock market. Malaysia's has been recognised as one of the most rapidly growing markets in the Far East region; therefore, testing the market is essential and valid. The study found that notwithstanding its inception in the stock market, the Malaysian stock market was capable of proffering abnormal returns to investors, thus indicating that Graham's model of stock selection is certainly beneficial to investors.

Research paper thumbnail of Do Malaysian Politically Linked Spin-Off Companies Underperformed?

SSRN Electronic Journal, 2014

This study examines the short-run and long-run share return performance of politically-linked com... more This study examines the short-run and long-run share return performance of politically-linked companies in the event of a spin-off during the period January 1980 to April 2011. We find that the group of politically-linked parent companies significantly outperformed the group of non politically-linked companies during the few days surrounding the announcement date even after an adjustment for size. This indicates that the market anticipates increased value for politicallylinked parent"s shareholders and a potential exploitable stock market inefficiency. However, after allowing for size, we observe that spin-offs by the politically-linked entities fail to demonstrate abnormal performance in the long-run period (three-years).

Research paper thumbnail of Spin-Off and Value Creation: The Case of Malaysia

SSRN Electronic Journal, 2014

This paper investigates the short-and long-run share return performance of Malaysian spin-off fir... more This paper investigates the short-and long-run share return performance of Malaysian spin-off firms. Using daily and monthly data, it examines the performance of spin-off firms against the benchmarks of Malaysian indices and matched-firm portfolios. The results show that parent firms significantly outperformed the market during the few days surrounding the announcement date even after adjustment for size. In the long-run analysis over three years, however, we do not find abnormal performance for parents, spun-offs and combined entities. We also find some evidence that the notable positive share returns for parent firms over the short-run period are related to political linkage rather than corporate focus or the size effect. Overall, this research allows us to plausibly argue that the market anticipates both increased value for parent shareholders and exploitable stock market inefficiency in the short-run period but not in the long-run period.

Research paper thumbnail of Firm Performance and Dividend-Related Factors: The Case of Malaysia

Labuan Bulletin of International …, 2007

... Foong, Zakaria & Tan / Labuan Bulletin of International Business & Finance, 5... more ... Foong, Zakaria & Tan / Labuan Bulletin of International Business & Finance, 5, 2007, 97-111 ... Our preliminary analysis support for Smith and Watts (1992) and Gaver and Gaver (1993), that growth firms (Trading/Services sector) have significantly lower dividend yields than non ...

Research paper thumbnail of Do Malaysian spin-offs create value?

Asian Journal of Finance & Accounting, 2012

This paper investigates the short-and long-run share return performance of Malaysian spin-off fir... more This paper investigates the short-and long-run share return performance of Malaysian spin-off firms during the period January 1980 to April 2011. Using daily and monthly data, the study examines the performance of spin-off firms against the benchmarks of Malaysian All-Shares indices. The results show that parent firms significantly outperformed the market during the few days surrounding the announcement date even after adjustment for size. In the long-run analysis of three years, however, and after allowing for size, this research failed to find abnormal performance for either parents or spun-off entities. Overall, the results of this research allow us to plausibly argue that the market anticipates both increased value for parent shareholders and potential exploitable stock market efficiency in the short-run period but not in the long-run.

Research paper thumbnail of Politically linked spin-offs: evidence from Malaysia

International Journal of Bonds and Derivatives, 2016

This study investigates the short- and long-run share return performance of politically linked co... more This study investigates the short- and long-run share return performance of politically linked companies in the event of a spin-off during the period 1980 to 2011. The result shows that the group of politically linked parent companies significantly outperformed the group of non-politically linked companies during the few days surrounding the announcement date even after an adjustment for size. This indicates that the market anticipates increased value for politically linked parent's shareholders and potential exploitable stock market inefficiency. However, after allowing for size, evidence indicates that spin-offs by the politically linked entities do not demonstrate abnormal performance in the subsequent three-year period.

Research paper thumbnail of Do Malaysian Focus-Increasing Spin-Off Firms Underperform?

Asian Academy of Management Journal of Accounting and Finance, 2012