Long-term performance of newly listed companies on the Regional Stock Exchange

Abstract

This paper focuses on initial public offerings on the BRVM market. The objective of this research is to examine the long-run performance of newly listed companies on this market. The study covers 9 firms with data from 1999 to 2011. The results provide empirical evidence of the existence of long-term underperformance and more specifically the performance of stocks declines over the years until the fifth year.