| dc.creator |
Pulkeria, Pascoe, |
|
| dc.date |
2016-04-04T10:16:37Z |
|
| dc.date |
2016-04-04T10:16:37Z |
|
| dc.date |
2014 |
|
| dc.identifier |
http://hdl.handle.net/11192/1123 |
|
| dc.description |
A Research Report submitted in Partial Fulfilment of the Requirements for Award
of the Degree of Master of Science ( Accounting & Finance) of Mzumbe University. |
|
| dc.description |
When the company needs to raise more capital or to provide liquidity to the existing
shareholders, it may decide to issue shares or go to public with an initial public offering
(IPO). IPOs appear to be a good investment opportunity but risks do exist. In active
markets, the information on IPO announcement and selling can be used as a reliable
indicator to predict the trading trend in the subsequent week. Since going public is
believed to improve share market performance then, there is a need to establish the
relationship between IPO and share price. The research is based on assessing the effects
of IPO on share price of companies listed at Dar es Salaam Stock Exchange (DSE) using
DSE All Share Index (DSEI). The theoretical and empirical research was performed in
order to widen researcher’s knowledge on the study. The research assessed the effects of
IPO (announcement and selling) on five listed companies that went public between 2008
and 2013 through the dependent variable; share price.
The research based on secondary data and the main source of data was the DSE. The
population of the study comprised all companies listed at DSE under MMIS category.
DSEI details were extracted from the detailed daily market reports issued by DSE. The
websites of the judgmentally sampled companies were visited and available annual
reports and prospectuses were downloaded from them. Using the Linear and ARIMA
regression models in STATA 11.2; a researcher was able to find out that IPO
announcement and IPO selling have no significant effects to the share price based on the
sample used. The results also revealed interesting results that previous share prices do
affect the current share price of a company. Since DSE is a small and inactive market;
the results suggest that policies to grow stock markets are important through
encouragement of new listings and the need for establishing a regional stock market is
inevitable in order to allow member states to benefit from economies of scale. Also
responsible authorities are advised to consider policies to increase the amount of shares
available for sale in the exchange without affecting the demand for the same shares. |
|
| dc.language |
en |
|
| dc.publisher |
Mzumbe University |
|
| dc.subject |
public offering |
|
| dc.title |
Effects of initial public offering (IPO) on share price: The case of companies listed at DSE |
|
| dc.type |
Thesis |
|