Was RASDAQ doomed from the start? Further investigations

Cornelia Pop, Cristina Balint and Maria - Andrada Georgescu
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Cornelia Pop: Babes-Bolyai University, Cluj Napoca, Romania
Cristina Balint: Babes-Bolyai University, Cluj Napoca, Romania

Theoretical and Applied Economics, 2015, vol. XXII, issue Special(II), 191-210

Abstract: The present paper continues the investigations on RASDAQ market initiated by Pop et al. (2014) by extending the period under scrutiny to December 2014. The changes that took place during 2014 are highlighted and the hypothesis formulated by Pop et al. (2014) reinvestigated. The current findings confirm the hypothesis previously formulated. RASDAQ has been under the influence of Bucharest Stock Exchange (BVB) and overshadowed by it; therefore RASDAQ was only secondarily considered as an alternative for portfolio investments. The January effect and the weekend effect became even weaker by extending the investigation period confirming the fact that RASDAQ was rather ignored by portfolio investors. By adding new independent variables in investigating the trades’ variability, it was reinforced that RASDAQ was used mainly by the existing shareholders involved in the ownership concentration process. Further, the paper tried to establish how many companies would be interesting to be transferred at BVB Standard tier. The investigation took into consideration the similarity of company profiles based on market capitalization, trades within 52 weeks, debt to equity ratio, net profit or loss ratio, and Tobin’s q. A number of 39 companies were identified, a little higher than that mentioned by BVB general director. Overall, the current investigations confirm the main conclusion of Pop et al. (2014) that the RASDAQ played its role as intermediary of ownership concentration for the listed companies

Keywords: equity market; Granger causality; January effect; weekend effect; RASDAQ. (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxii:y:2015:i:special(ii):p:191-210

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