The study intends to shed lights on whether the risk factors disclosed in the initial public offering (IPO) prospectus in Malaysia are able to reflect the actual risks of stocks once they are traded on the exchange. In other words, the purpose of this paper is to explore whether prospective investors will be able to benefit, in terms of the more accurate risk information, from the risk disclosures in the IPO-prospectus.,Using data obtained from 118 IPO prospectuses of Malaysian companies that issued shares on Bursa Malaysia in the period from 2009 to 2016, the authors investigated whether the “risk factor” section in the IPO prospectuses provides sufficient risk-relevant information to investors. To determine whether companies disclose risk-relevant information, a detailed content analysis of the risk sections was carried out to obtain an aggregate measure of risk disclosure.,The findings revealed that the aggregate measures of risk extracted from these texts did not successfully predict the following outcomes: the volatility of companies’ future stock prices, the sensitivity of future stock prices to market-wide fluctuations and the severe declines in future stock prices.,As indicated by the findings, the authors, therefore, deduce that the IPO prospectuses of Malaysian companies do not provide sufficient risk-relevant information in the risk factor section. The findings imply that overall the management of Malaysian companies would neither be able nor willing to disclose the right and relevant information to the public via IPO prospectus.,Many corporate risk disclosure studies focus primarily on the disclosures of annual reports of companies. The study intends to fill the gap by focusing on the risk disclosure in the IPO-prospectus. Risk disclosures in IPO-prospectus are farmore extensive than annual reports and, therefore, provide a richness of information that will not be available in the annual reports.

中文翻译：

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马来西亚的IPO招股说明书是否披露相关风险？

该研究旨在阐明马来西亚首次公开发行股票招股说明书中披露的风险因素是否能够反映股票在交易所交易后的实际风险。换句话说，本文的目的是探讨潜在投资者是否能够从IPO招股说明书中的风险披露中受益于更准确的风险信息。使用来自118个马来西亚IPO招股说明书的数据2009年至2016年期间在大马交易所发行股票的公司，作者调查了IPO招股说明书中的“风险因素”部分是否为投资者提供了足够的与风险相关的信息。要确定公司是否披露与风险相关的信息，研究结果显示，从这些文本中提取的总体风险度量未能成功预测以下结果：公司未来股价的波动性结果表明，作者推断，马来西亚公司的IPO招股说明书没有提供足够的与风险相关的信息，如未来股票价格对整个市场波动和未来股票价格的严重下跌的敏感性。风险因素部分。调查结果表明，马来西亚公司的整体管理人员既无能力也不愿意通过IPO招股说明书向公众披露权利和相关信息。许多公司风险披露研究主要集中于公司年度报告的披露。该研究旨在通过专注于IPO招股说明书中的风险披露来填补这一空白。IPO招股说明书中的风险披露范围远远超过年度报告，因此提供了丰富的信息，而这些信息将无法在年度报告中获得。