Title: Availability of shares on the West Africa regional stock exchange: scarcity or illusion?

Authors: Balibié Serge Auguste Bayala; Pourakin Dieudonné Djarius Bama

Addresses: University Ouaga II, 12 P.O. Box 417 Ouagadougou, Burkina Faso; Centre Africain d'Etudes Supérieures en Gestion (CESAG), P.O. Box 3802, Dakar, Senegal ' Department of Management, University Ouaga II, P.O. Box 343, Ouagadougou, Burkina Faso

Abstract: This article examines the speed at which shares change hands and the empirical link between the float level and the volume of traded shares on the stock market of the regional stock exchange using secondary data from the Regional Council. The results indicate that all shares listed on the regional stock exchange value (BRVM) are less rotational and the volume of traded shares on the market is positively correlated with the volume of outstanding shares. This leads to the conclusion that most investors' approach is based on conservation of shares in the regional stock exchange value (BRVM). This will inevitably lead to a reduction of the depth and liquidity of the market due to the scarcity of shares involved on the market.

Keywords: scarcity of shares; shares rotation; float; traded shares; stock market; bond market; raised funds; markets crises; contagion.

DOI: 10.1504/AJAAF.2019.099167

African Journal of Accounting, Auditing and Finance, 2019 Vol.6 No.3, pp.260 - 278

Received: 25 Sep 2018
Accepted: 22 Dec 2018
Published online: 16 Apr 2019 *

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