Document Type Master's Dissertation Author Chandran, Sangeet Thaivalappil URN etd-06242012-131758 Document Title Liquidity levels and the long-run performance of initial public offerings in South Africa Degree MBA Department Gordon Institute of Business Science Supervisor
Advisor Name Title Mr K Thaver Supervisor Keywords
- liquidity levels
- calendar time portfolio approach
Date 2012-03-08 Availability unrestricted AbstractThis study investigated the impact of the levels of liquidity of Initial Public Offering (IPO) stocks on the long-run performance of IPOs over a five year period. In addition the study sought to investigate if the levels of liquidity of IPO stock were significantly higher than non-IPO stock. The methodology used was the calendar time portfolio approach based on the Fama-French regression equation. The study found that over a five year period IPOs did not underperform or over-perform the market. In addition the study found that the liquidity levels of IPOs were not significantly higher than non-IPOs. While the lower liquidity levels help explain the fact that the IPOs did not underperform the market, they do not indicate the existence of a liquidity risk premium on the Johannesburg Stock Exchange (JSE).
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Please cite as follows:
Chandran, ST 2011, Liquidity levels and the long-run performance of initial public offerings in South Africa, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-06242012-131758/ >
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