ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2013
  • © Brno University of Technology, 2002-2013
  • © University of Latvia, 2002-2013
The Long-Run Underperformance of Initial Public Offerings in the Emerging Capital Markets: Evidence from Romania, Bulgaria and Hungary
Cristina Duhnea, Diane Paula Corina Vancea

ABSTRACT. The main function of the capital market financing the real economy was and still is a topic of obvious interest discussed in financial literature. The particularities of issuing and trading shares that attract investors are an issue very much in current focus for the emerging capital markets. This paper studies the existence of long-run abnormal returns of the shares from initial public offerings (IPOs) on the Romanian capital market. The findings allow for a better understanding of the causes underlying the small number of IPOs, the lack of foreign investor interest and the resulting low market liquidity on the Romanian capital.

KEYWORDS: initial public offering, long-run underperformance, capital market, abnormal return, stock exchange index.

JEL classification: E44, 012, GlO.

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Scholarly papers Transformations in Business & Economics
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