Performance of IPOs on the Ghana Stock Exchange

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The study sort to determine the short run and long run price performance of IPOs on the Ghana Stock Exchange. Data was collected from the Ghana Stock exchange, Securities and Exchange Commission and the Bank of Ghana. Initial returns are calculated where the "event period is the closing price on the first full trading day after the IPO is floated on the Jexchange. 3 year buy-and-hold returns are calculated for a sample of initial public offerings IpPOs) on the Ghana Stock Exchange in order to test the robustness of earlier results which suggest that IPOs deliver abnormally low long-run returns. A bootstrapped and skew- adjusted t statistic is employed. Overall, there is little evidence of significant abnormal long- mn performance. Further tests reveal that the financial institution IPOs experienced by far the highest initial returns and their long-run abnormal performance was also significant. This may be the result of chance, or alternatively the sector may offer an isolated area of empirical support for theories of irrational stock market behaviour.  
A Dissertation Submitted to the Kwame Nkrumah University of Science and Technology Business School in Partial fulfilment Of the Requirements For The award of Masters in Business Administration, 2008