TY - JOUR
T1 - The factors influencing the decision to list on Abu Dhabi securities exchange
AU - Maghyereh, Aktham I.
AU - Awartani, Basel
N1 - Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2018/9
Y1 - 2018/9
N2 - The Abu Dhabi Securities Exchange is established to fund corporates, investments and economic growth. However, many companies operating in Abu Dhabi do not take the opportunity and list in the market. In this paper we survey a sample 145 chief executive officers and deputies of the CEO's in order to explain why firms refrain from going public and float their equity in the market. Our findings indicate that the poor quality of the Abu Dhabi equity market in terms of its inefficiency and inadequate liquidity plays a crucial role in discouraging firms to list in the market. Moreover, management do not list in order to avoid dilution of ownership as well as to retain control of the company. Finally, we find that knowledgeable managers in big companies are more likely to list in the market particularly when they operate in a competitive industry.
AB - The Abu Dhabi Securities Exchange is established to fund corporates, investments and economic growth. However, many companies operating in Abu Dhabi do not take the opportunity and list in the market. In this paper we survey a sample 145 chief executive officers and deputies of the CEO's in order to explain why firms refrain from going public and float their equity in the market. Our findings indicate that the poor quality of the Abu Dhabi equity market in terms of its inefficiency and inadequate liquidity plays a crucial role in discouraging firms to list in the market. Moreover, management do not list in order to avoid dilution of ownership as well as to retain control of the company. Finally, we find that knowledgeable managers in big companies are more likely to list in the market particularly when they operate in a competitive industry.
KW - Abu Dhabi firms
KW - Going public
KW - Information disclosure requirements
KW - Ownership and control rights
KW - Stock market liquidity and efficiency
KW - Survey
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U2 - 10.1016/j.jbef.2018.05.004
DO - 10.1016/j.jbef.2018.05.004
M3 - Article
AN - SCOPUS:85048931429
SN - 2214-6350
VL - 19
SP - 89
EP - 103
JO - Journal of Behavioral and Experimental Finance
JF - Journal of Behavioral and Experimental Finance
ER -