The main purpose of this paper is to examine the main role of liquidity in stock pricing on African emerging stock markets. The study applies portfolios panel data analysis to modify and adapt the existing estimation process. Using three different procedures, six portfolios have been constructed base on the 32 most active stocks on the so called BRVM; the measures of liquidity considered are the turnover and the illiquidity ratios. To reach our objectives, we first of all verify if liquidity is taken into consideration in the explanation of expected excess return. Secondly, we verify whether liquidity risk is correctly priced on BRVM. The results indicate that from 1998 to 2008, whereas liquidity is correctly taken into account in equity pricing, there is no significant evidence that liquidity risk is priced on the BRVM. These conclusions remain stable even when various tests of robustness are undertaken and they are not consistent with results obtained by the authors on developed stock markets. These results may be explained by the microstructure of the BRVM.
Institutional reforms implemented since the beginning of the Nineties resulted in a substantial increase in Foreign Direct Investments (FDI) inflow into Sub-Saharan Africa. The present study uses data on 32 countries to evaluate the impact of FDI on economic growth through panel data regressions for the period 1988-2008. The study captures the incidence of commercial openness through a comparison between the landlocked countries and those having access to the sea. The results show that FDI have a positive and significant effect on economic growth in countries that have access to the sea whereas for the landlocked countries, the results are not significant. It is therefore recommended that African countries continue to implement policies favorable to the attraction of FDI. Landlocked countries should lay a particular emphasis on the construction of infrastructures (roads, railways, airports, and phone) that facilitate the flow of goods towards the different ports for shipment to countries where their goods are more demanded
The purpose of this article is to highlight the reaction of share prices following the publication of dividends on the regional stock exchange (RSESS). To achieve the objective of our study, daily profitability series data were used over the period from January 1998 to December 2007. The methodology of the event studies was used and there are various ways to incorporate the "Event in the prices. It is accepted that the effect of the announcement of the dividend for all the securities is positive despite imperfections in the reaction of the markets. Consequently, the publication of dividends has an impact on stock market returns. The hypothetical information content of the dividend (ICHD) is therefore accepted.Keywords: Abnormal returns, informational efficiency, event study, semistrong efficiency. ResumeL'objet de cet article est de mettre en évidence la réaction des cours boursiers suite à la publication des dividendes sur la bourse régionale des valeurs mobilière (BRVM). Pour atteindre l'objectif de notre étude, les European Scientific Journal August 2017 edition Vol.13, No.22 ISSN: 1857 -7881 (Print) e -ISSN 1857 283 données de séries de rentabilités journalières ont étés utilisées sur la période allant de janvier 1998 à décembre 2007. La méthodologie des études d'évènements à été utilisée et il apparait différentes manières d'incorporer l'événement dans les prix. On accepte que l'effet de l'annonce du dividende pour l'ensemble des titres soit positif malgré des imperfections dans la réaction des marchés. Dès lors, la publication des dividendes a une incidence sur les rendements boursiers. L'hypothèse du contenu informatif du dividende (HCID) est donc acceptée.Mots Clés: Rentabilités anormales, efficience informationnel, étude d'événement, efficience semi-forte.
African stock markets have particular characteristics, chiefly the extreme volatility of their returns, which would imply a significant risk premium. Very few studies attempted to investigate the existence of this risk premium for some return determinants on these markets. The purpose of this article is to evaluate the price of the microstructure risk on some selected African emerging stock markets, including JSE, NSE and BRVM. The data used is from these stock markets databases and ranges from 2000 to 2014. Generalised least square and generalised estimating equations methods are used at the last step of a modified version of Fama and Macbeth's (1973) sequential estimation technique, on a set of portfolio formed based on two different strategies. The results show that microstructure risk is not significantly priced on individual stock markets. However, it is better priced when portfolios are constituted with stocks of several financial markets. Indeed, except the liquidity, all considered microstructure risk factors are significantly and consistently priced. This highlights the fact that the risk premium is more attractive when markets are integrated. The study points out the need for the globalisation of African stock markets and a necessity to facilitate information flow.
The objective of this article is to analyse the impact of both external and internal mechanisms of corporate governance on banks performance in Cameroon. The internal governance mechanisms consist of those linked with the Board of directors (its size and composition) and the ownership structure (ownership concentration, equity capital of each type of shareholder). External mechanisms consist of pressure from competitors, and regulatory pressure from the banking Commission following the adoption of equity principles or rules. Research carried out on a sample of 11 Cameroonian banks showed the effect of complementarity between the control exerted by internal stakeholders (institutional shareholders, insiders ownership, size of the Board of directors) and competitive pressure. On the contrary, a substitution effect was detected between State administrators and competitive pressure. Results obtained also revealed the substitution effect between control exercised by the Board of directors and regulatory pressure.
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