The impacts of initial public offerings on the Casablanca stock exchange secondary market

Dissertant

Fahd, Bashir al-Buhali

Thesis advisor

Aouam, Tariq

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2008

English Abstract

This paper studies the impacts of initial public offerings on the Casablanca Stock Exchange secondary market.

It examines both the reaction of the whole market and its underlying sectors around the IPO announcement period in terms of returns and volume of transactions.

The results show that on 94% of the IPO announcements, the market returns react negatively.

50% of IPO announcements lead to the decrease of the market overall volume of transactions.

However, these movements are not statistically significant as it can be shown through the relatively low rejection rate of the stated null hypothesis.

Nevertheless, the concept of funds mobilization is not denied.

Also, tests performed on sectors did not reveal and display a clear pattern of their behavior during the period surrounding the IPO announcement.

Given these conditions, we cannot build a reliable general stock allocation model.

The results demonstrate that investors and commentators perceptions and thoughts about the market performance during initial public offerings periods are wrong.

However, it was found that the Casablanca Stock Exchange had enough power to absorb the volumes brought by the newly issued stock and not be heavily affected by it.

The paper provides a detailed description about the returns and transaction volumes movements during each IPO period for the market and its underlying sectors.

Main Subjects

Business Administration

No. of Pages

39

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-629155