Determinants of Reluctance to Initial Public Offering in Cameroonian Financial Market

Simplice Gaël Tonmo, Melissa Grace Tchapda Woumkep, Pierre Ghislain Tchoffo Tioyem and Glwadys Pinta Mefenza
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Simplice Gaël Tonmo: Department of management and finance, University of Dschang, Institute of Technology FOTSO VICTOR, Bandjoun, Cameroon
Melissa Grace Tchapda Woumkep: Department of finance, University of Dschang, Dschang, Cameroon
Pierre Ghislain Tchoffo Tioyem: Department of finance, University of Dschang, Dschang, Cameroon
Glwadys Pinta Mefenza: Department of finance, University of Douala, Douala, Cameroon

International Journal of Finance & Banking Studies, 2021, vol. 10, issue 4, 115-126

Abstract: The main objective of this study was to identify the specific characteristics of companies in Cameroon and to highlight the factors that explain their reluctance to be listed on the stock market. Thus, in order to build the state of the art appropriate to this objective, we had to follow three lines of investigation: the theories related to the listing of firms on the stock market, their specific characteristics, and the cross-fertilization of these two fields. On the basis of the literature, four explanatory hypotheses were deduced: they are related to the shareholding structure of firms, to the financial characteristics, to the size of the firm and to the socio-demographic characteristics of the managers. To test these hypotheses, a survey was conducted among 40 SAs in the city of Douala. The data was processed with the SPSS 20 software and we used flat sorting, cross-sorting, pearson correlation test as well as linear regression. This methodology allowed us to obtain the results according to which the family and filial character and the size of the company are mainly the factors of reluctance of the listing on the stock exchange on the one hand, and the behavioral factors of the company managers, in particular the level of education and the experience on the other hand.

Keywords: Initial public offering; Financial market; Linear regression; Limited company (search for similar items in EconPapers)
Date: 2021
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