Theoretical and Applied Economics (Sep 2016)
RASDAQ: The final curtain
Abstract
The present paper continues the studies of Pop et al. (2014) and Pop et al. (2015) and completes the previous studies by presenting a brief survey of RASDAQ’s entire active life, the profile of RASDAQ indices, and focusing on the last 911 RASDAQ listed companies: their profile and their decision to be transferred on other market segments or to be delisted. The results of the present study confirms, from another viewpoint, the findings of Pop et al. (2014) and Pop et al. (2015): RASDAQ most important role was to assist the ownership concentration process, thus this role was fulfilled much later compared with the similar markets that existed within the former communist countries. The fulfillment of this role was confirmed by: a) no important trading activity for most of the listed companies between 2013 and 2015; b) weak January and weekend effects; c) low free float. Furthermore, by choosing to put an end to RASDAQ, the Romanian authorities acknowledged the fulfillment of this role and the fact that a radical transformation of this controversial market was almost impossible.
