This paper examines the relationship between stock market listing and firm performance, considering whether this association helps to explain the limited participation of firms in Mozambique’s stock exchange, the Bolsa de Valores de Moçambique (BVM). Prior studies reveal mixed outcomes. We employed the Related-Sample Wilcoxon Signed Rank Test to compare the median pre-and post-listing ROA of the listed firms. Also, using panel data for Mozambican firms, we estimate hybrid random effects and two step system GMM models to address endogeneity and reverse causality. Results show a consistently statistically nonsignificant relationship between listing status and our measures of performance (ROA and ROE), both within and between firm levels. Moreover, listing does not significantly reduce agency costs, and its effect on leverage is negative at the between-firm level, suggesting listed firms carry lower debt than expected. Control variables, particularly leverage and agency costs, exhibit significant negative effects on firm performance, underscoring financial fragility and governance challenges. Overall, findings indicate that listing on the BVM does not enhance firm performance, helping explain firms’ reluctance to list. These results highlight the institutional voids in Mozambique’s capital market and suggest that without stronger infrastructure, investor protection, and governance reforms, listing will remain unattractive to most firms.
| Published in | International Journal of Economics, Finance and Management Sciences (Volume 14, Issue 3) |
| DOI | 10.11648/j.ijefm.20261403.13 |
| Page(s) | 208-224 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2026. Published by Science Publishing Group |
Mozambique, Stock Market Listing, Firm Performance, Hybrid Model, System GMM, Corporate Governance, Emerging Markets
| [1] | Abraham, S., & Kannappan, M. (2018). The role of stock exchanges in corporate governance. International Journal of Pure and Applied Mathematics, 119(17), 1023–1033. |
| [2] | Acquaah, M. (2015). Determinants of corporate listings on stock markets in sub-Sahara Africa: Evidence from Ghana. Emerging Markets Review, 22, 154–175. |
| [3] | Aghamolla, C., & Thakor, R. T. (2022). Do mandatory disclosure requirements for private firms increase the propensity of going public? Journal of Accounting Research, 60(3), 755–804. |
| [4] | Alanazi, A., Liu, B., & Forster, J. (2011). The financial performance of Saudi Arabian IPOs. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 146–157. |
| [5] | Aluchna, M., & Kuszewski, T. (2021). Do financial investors mitigate agency problems? Evidence from an emerging market. European Research Studies Journal, 24(2), 872–888. |
| [6] | Asker, J., Farre-Mensa, J., & Ljungqvist, A. (2015). Corporate investment and stock market listing: A puzzle? The Review of Financial Studies, 28(2), 342–390. |
| [7] | Bai, Y., Xu, J., & Jin, C. (2024). The crowding-out effect of government debt: A loan financing-based perspective. Borsa Istanbul Review, 24(5), 1059–1066. |
| [8] | Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. |
| [9] | Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management Executive, 9(4), 49–61. |
| [10] | Bell, A., Fairbrother, M., & Jones, K. (2019). Fixed and random effects models: Making an informed choice. Quality & Quantity, 53, 1051–1074. |
| [11] | Bennett, B., Stulz, R., & Wang, Z. (2020). Does the stock market make firms more productive? Journal of Financial Economics, 136(2), 281–306. |
| [12] | Brau, J. C., & Fawcett, S. E. (2006). Initial public offerings: An analysis of theory and practice. Journal of Finance, 61(1), 399–436. |
| [13] | BVM. (2024a). Annual stock market report 2023. |
| [14] | BVM. (2024b). BVM history. |
| [15] | BVM. (2024c). Rules and procedures. |
| [16] |
BVM. (2024d). Types of markets.
https://bvm.co.mz/index.php/en/services/trading/type-of-markets |
| [17] |
BVM. (2024e). Call auction trading.
https://bvm.co.mz/index.php/en/services/trading/opening-hours#call-auction-trading |
| [18] |
BVM. (2024f). Registration trading system.
https://bvm.co.mz/index.php/en/services/trading/opening-hours#registration-trading-system |
| [19] |
BVM. (2024g). Market costs.
https://bvm.co.mz/index.php/en/services/trading/market-costs |
| [20] | Christiansen, H., & Koldertsova, A. (2009). The role of stock exchanges in corporate governance. OECD Journal: Financial Market Trends, 2009(1), 209–238. |
| [21] | Dhaliwal, D. S. (1983). Exchange-listing effects on a firm's cost of equity capital. Journal of Business Research, 11(2), 139–151. |
| [22] | Doidge, C., Karolyi, G. A., & Stulz, R. M. (2017). The U.S. listing gap. Journal of Financial Economics, 123(3), 464–487. |
| [23] | Dyer, T., Lang, M., & Stice-Lawrence, L. (2017). The evolution of 10-K textual disclosure: Evidence from Latent Dirichlet Allocation. Journal of Accounting and Economics, 64(2–3), 221–245. |
| [24] | Ewens, M., & Farre-Mensa, J. (2020). The deregulation of the private equity markets and the decline in IPOs. The Review of Financial Studies, 33, 5463–5509. |
| [25] |
Farre-Mensa, J. (2011). Why are firms privately held?
http://efa2011.efa-online.org/fisher.osu.edu/blogs/efa2011/files/CFE_9_2.pdf |
| [26] | Farre-Mensa, J. (2017). The benefits of selective disclosure: Evidence from private firms. |
| [27] | Field, A. (2017). Discovering statistics using IBM SPSS statistics (5th ed.). SAGE Publications Ltd. |
| [28] | Flayyih, H. H., & Khiari, W. (2023). An empirical study to detect agency problems in listed corporations: An emerging market study. Journal of Governance and Regulation, 12(1), 207–217. |
| [29] | French, J. J., Fujitani, R., & Yasuda, Y. (2020). Does stock market listing impact investment in Japan? Journal of The Japanese and International Economies, 59, 101093. |
| [30] | French, D. W., Kern, A. E., Morillon, T., & Yore, A. S. (2022). The impact of exchange listing on corporate governance: Evidence from direct listings. SSRN. |
| [31] | Gao, H., Harford, J., & Li, K. (2013). Determinants of corporate cash policy: Insights from private firms. Journal of Financial Economics, 109(3), 623–639. |
| [32] | Ghonyan, L. (2017). Advantages and disadvantages of going public and becoming a listed company. SSRN Electronic Journal. |
| [33] | Gilje, E. P., & Taillard, J. P. (2016). Do private firms invest differently than public firms? Taking cues from the natural gas industry. Journal of Finance, 71(4), 1733–1778. |
| [34] | Gleason, K., Payne, B., & Wiggenhorn, J. (2007). An empirical investigation of going private decisions of U.S. firms. Journal of Economics and Finance, 31(2), 207–218. |
| [35] | Gubbi, S. R., & Elango, B. (2016). Resource deepening vs. resource extension: Impact on asset-seeking acquisition performance. Management International Review, 56(3), 353–384. |
| [36] | Gutiérrez, G., & Philippon, T. (2018). Ownership, concentration, and investment. AEA Papers and Proceedings, 108, 432–437. |
| [37] | Hasan, I., Song, L., & Wachtel, P. (2014). Institutional development and stock price synchronicity: Evidence from China. Journal of Comparative Economics, 42(1), 92–108. |
| [38] | Hearn, B., & Piesse, J. (2010). Barriers to the development of small stock markets: A case of Swaziland and Mozambique. Journal of International Development, 22(7), 1018–1037. |
| [39] | Huang, G., & Song, F. M. (2005). The financial and operating performance of China’s newly listed H-firms. Pacific-Basin Finance Journal, 13(1), 53–80. |
| [40] | Ibekwe, I. (2015). Corporate decision to remain private in Mozambique: A qualitative study. Qualitative Research in Financial Markets, 7(4), 363–378. |
| [41] | Ibekwe, I. (2023). Blockholding and agency cost: Evidence from Nigeria. International Journal of Emerging Markets, 18(5), 1078–1101. |
| [42] | Intrisano, C., Micheli, A., & Calce, A. (2020). Does stock listing affect value creation and profitability? Evidence from European listed and unlisted companies. International Journal of Economics and Finance, 12(11), 130. |
| [43] | Jain, B. A., & Kini, O. (1994). The post-issue operating performance of IPO firms. Journal of Finance, 49(5), 1699–1726. |
| [44] | Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. |
| [45] |
Khanna, T., & Palepu, K. (1997). Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75(4), 41–51.
https://hbr.org/1997/07/why-focused-strategies-may-be-wrong-for-emerging-markets |
| [46] | Khandelwal, V., Tripathi, P., Chotia, V., Srivastava, M., Sharma, P., & Kalyani, S. (2023). Examining the impact of agency issues on corporate performance: A bibliometric analysis. Journal of Risk and Financial Management, 16(12), 497–518. |
| [47] | Kim, J. H. (2019). Multicollinearity and misleading statistical results. Korean Journal of Anesthesiology, 72(6), 558–569. |
| [48] | KPMG Mozambique. (2022). As 100 maiores empresas de Moçambique: XXIV edição 2022. Maputo: KPMG Auditores e Consultores, SA. |
| [49] | Kuntchev, V., Ramalho, R., Rodriguez-Meza, J., & Yang, J. S. (2013). What have we learned from the enterprise surveys regarding access to credit by SMEs? Policy Research Working Paper No. 6670. World Bank. |
| [50] |
Lamont, D. (2018). What is the point of the equity market? Schroders Insights Report.
https://www.schroders.com/en-gr/gr/professional/insights/what-is-the-point-of-the-equity-market/ |
| [51] | Larrain, B., Phillips, G. M., Sertsios, G., & Urzúa, F. (2025). The effects of going public on firm profitability and strategy. The Review of Financial Studies, 38(8), 2467–2514. |
| [52] | Le, T. Q., Duong, H. N., & Nguyen, P. T. (2021). To list or not to list, that is the question: New evidence from the performance of Vietnamese commercial banks. Journal of Financial Regulation and Compliance, 29(2), 163–186. |
| [53] | Lé, M., & Vinas, F. (2024). Firm listing status, firm size, and the financing of investment. The Review of Corporate Finance Studies, 13(3), 818–857. |
| [54] | Loughran, T., & Ritter, J. (1995). The new issues puzzle. Journal of Finance, 50(1), 23–51. |
| [55] | Liang, C. Y. C., Qi, Y., Zhang, R., & Zhu, H. (2023). Does sunlight kill germs? Stock market listing and workplace safety. Journal of Financial and Quantitative Analysis, 58(4), 1645–1674. |
| [56] | Macey, J. R. (2003). Efficient capital markets, corporate disclosure, and Enron. Cornell Law Review, 89(2), 394–422. |
| [57] | Medina, A., de la Cruz, A., & Tang, Y. (2022). Corporate ownership and concentration (OECD Corporate Governance Working Papers No. 27). OECD Publishing. |
| [58] | Mikkelson, W. H., Partch, M., & Shah, K. (1997). Ownership and operating performance of companies that go public. Journal of Financial Economics, 44(3), 281–308. |
| [59] | Mindosa, B., & Pasaribu, P. (2020). Initial public offering: New evidence from Indonesia. Journal of Business and Entrepreneurship, 8(1), 1–17. |
| [60] | Mohamed Riyath, M. I., & Indunil Dayaratne, D. A. (2025). Why do companies go public in Sri Lanka? A mixed-method approach. Qualitative Research in Financial Markets, 17(2), 229–250. |
| [61] | Musawa, N., Mwaanga, C., & Chilando, M. (2017). The impact of institutional factors on the SMEs’ desire to list on the securities exchange. Scholars Journal of Economics, Business and Management, 4(9), 618–625. |
| [62] | Mwenda, B., Ndiege, B. O., & Pastory, D. (2021). Impact of listing on performance of firms listed at Dar es Salaam Stock Exchange, Tanzania. African Journal of Applied Research, 7(2), 13–29. |
| [63] | Mwenda, B., & Pastory, D. (2022). Financial performance of firms before and after listing on Dar es Salaam Stock Exchange, Tanzania. In Sustainable education and development–Making cities and human settlements inclusive, safe, resilient, and sustainable: Proceedings of the Applied Research Conference in Africa (ARCA), 2021 (pp. 341–351). Springer International Publishing. |
| [64] | Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. |
| [65] | Nguyen, A. H., & Duong, C. T. (2022). Earnings management and accounting performance of new firms’ listings: Evidence from the Vietnamese stock market. Cogent Business & Management, 9(1), 2060163. |
| [66] | Pagano, M., Panetta, F., & Zingales, L. (1998). Why do companies go public? An empirical analysis. Journal of Finance, 53(1), 27–64. |
| [67] | Park, M., Song, H., & Niu, J. (2018). The impact of public listing on bank profitability. Corporate Ownership & Control, 15(4), 58–63. |
| [68] | Pasquariello, P. (2024). Agency costs and strategic speculation in the U.S. stock market. The Review of Corporate Finance Studies, 13(1), 147–190. |
| [69] | Peng, M. W., Sun, S. L., Pinkham, B., & Chen, H. (2009). The institution-based view as a third leg for a strategy tripod. Academy of Management Perspectives, 23(3), 63–81. |
| [70] | Phillips, G. M., & Sertsios, G. (2017). Financing and new product decisions of private and publicly traded firms. The Review of Financial Studies, 30(5), 1744–1789. |
| [71] | Prayogi, J., & Wibowo, A. (2022). The effect of resource complementarity on a company’s performance post-merger and acquisition in the Southeast Asia region: The moderating role of the merger and acquisition experience. Gadjah Mada International Journal of Business, 24(2), 223–244. |
| [72] | Roodman, D. (2009). A note on the theme of too many instruments. Oxford Bulletin of Economics and Statistics, 71(1), 135–158. |
| [73] | Schunck, R., & Perales, F. (2017). Within- and between-cluster effects in generalized linear mixed models: A discussion of approach and the xthybrid command. The Stata Journal, 17(1), 89–115. |
| [74] | Shaikh, J. M., & Linh, D. T. B. (2016). Stock market listing influence on corporate performance: Definitions and assessment tools. In International Conference on Business Capacity: Model and Assessment Tools, Hanoi, December 2016. |
| [75] | Shaikh, J. M., & Linh, D. T. B. (2017). Using the TFP model to determine impacts of stock market listing on corporate performance of agri-foods companies in Vietnam. Journal of Corporate Accounting & Finance, 28(3), 61–74. |
| [76] | Sharma, P., & Roca, E. (2012). It is time to re-examine the role of stock markets in developing economies. Journal of Asia-Pacific Business, 13(3), 206–228. |
| [77] | Shin, H., & Lee, S. H. (2019). Firm resource stock, resource complementarity, and the heterogeneity in resource value. Asia Pacific Journal of Management, 36, 661–686. |
| [78] | Suryaningrum, D. H., Abdul Rahman, A. A., Meero, A., & Cakranegara, P. A. (2023). Mergers and acquisitions: Does performance depend on managerial ability? Journal of Innovation and Entrepreneurship, 12(1), Article 30. |
| [79] | Takagi, S. (2002). Fostering capital markets in a bank-based financial system: A review of major conceptual issues. Asian Development Review, 19(1), 67–97. |
| [80] | Tan, N. V., & Trung, T. Q. (2019). Listing and firm performance in a transition economy. Asian Economic and Financial Review, 9(3), 353–365. |
| [81] | Ueda, K., Ishide, A., & Goto, Y. (2019). Listing and financial constraints. Japan and the World Economy, 49, 1–16. |
| [82] | USAID. (2017). Increasing private sector participation in the stock exchange in Mozambique. |
| [83] | Vu, D. K. (2022). Stock listing, share issues, and firm performance: Evidence from Vietnam. Kyushu University Institutional Repository, Economic Review, 171/172, 75–91. |
| [84] | World Bank. (2019). Enterprise surveys (what businesses experience) – Mozambique 2018 country profile. |
| [85] | World Bank. (2020). Doing business 2020: Comparing business regulation in 190 economies – Economy profile Mozambique. |
| [86] | Wu, H-L., Chen, C-H. & Lin, H-L. (2009). Can a stock market listing help to improve the operational performance of China’s banks? Journal of Economic Policy Reform, 12(1), 13-28. |
APA Style
Ibekwe, I., Nhantumbo, S. R., Siliya, P. Q. (2026). Stock Market Listing and Firm Performance in Mozambique: Exploring the Incentive Gap in a Bank-dominated Economy. International Journal of Economics, Finance and Management Sciences, 14(3), 208-224. https://doi.org/10.11648/j.ijefm.20261403.13
ACS Style
Ibekwe, I.; Nhantumbo, S. R.; Siliya, P. Q. Stock Market Listing and Firm Performance in Mozambique: Exploring the Incentive Gap in a Bank-dominated Economy. Int. J. Econ. Finance Manag. Sci. 2026, 14(3), 208-224. doi: 10.11648/j.ijefm.20261403.13
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ijefm.20261403.13,
author = {Ibeawuchi Ibekwe and Salim Reginaldo Nhantumbo and Pedkuna Queenta Siliya},
title = {Stock Market Listing and Firm Performance in Mozambique: Exploring the Incentive Gap in a
Bank-dominated Economy},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {14},
number = {3},
pages = {208-224},
doi = {10.11648/j.ijefm.20261403.13},
url = {https://doi.org/10.11648/j.ijefm.20261403.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20261403.13},
abstract = {This paper examines the relationship between stock market listing and firm performance, considering whether this association helps to explain the limited participation of firms in Mozambique’s stock exchange, the Bolsa de Valores de Moçambique (BVM). Prior studies reveal mixed outcomes. We employed the Related-Sample Wilcoxon Signed Rank Test to compare the median pre-and post-listing ROA of the listed firms. Also, using panel data for Mozambican firms, we estimate hybrid random effects and two step system GMM models to address endogeneity and reverse causality. Results show a consistently statistically nonsignificant relationship between listing status and our measures of performance (ROA and ROE), both within and between firm levels. Moreover, listing does not significantly reduce agency costs, and its effect on leverage is negative at the between-firm level, suggesting listed firms carry lower debt than expected. Control variables, particularly leverage and agency costs, exhibit significant negative effects on firm performance, underscoring financial fragility and governance challenges. Overall, findings indicate that listing on the BVM does not enhance firm performance, helping explain firms’ reluctance to list. These results highlight the institutional voids in Mozambique’s capital market and suggest that without stronger infrastructure, investor protection, and governance reforms, listing will remain unattractive to most firms.},
year = {2026}
}
TY - JOUR T1 - Stock Market Listing and Firm Performance in Mozambique: Exploring the Incentive Gap in a Bank-dominated Economy AU - Ibeawuchi Ibekwe AU - Salim Reginaldo Nhantumbo AU - Pedkuna Queenta Siliya Y1 - 2026/05/26 PY - 2026 N1 - https://doi.org/10.11648/j.ijefm.20261403.13 DO - 10.11648/j.ijefm.20261403.13 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 208 EP - 224 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20261403.13 AB - This paper examines the relationship between stock market listing and firm performance, considering whether this association helps to explain the limited participation of firms in Mozambique’s stock exchange, the Bolsa de Valores de Moçambique (BVM). Prior studies reveal mixed outcomes. We employed the Related-Sample Wilcoxon Signed Rank Test to compare the median pre-and post-listing ROA of the listed firms. Also, using panel data for Mozambican firms, we estimate hybrid random effects and two step system GMM models to address endogeneity and reverse causality. Results show a consistently statistically nonsignificant relationship between listing status and our measures of performance (ROA and ROE), both within and between firm levels. Moreover, listing does not significantly reduce agency costs, and its effect on leverage is negative at the between-firm level, suggesting listed firms carry lower debt than expected. Control variables, particularly leverage and agency costs, exhibit significant negative effects on firm performance, underscoring financial fragility and governance challenges. Overall, findings indicate that listing on the BVM does not enhance firm performance, helping explain firms’ reluctance to list. These results highlight the institutional voids in Mozambique’s capital market and suggest that without stronger infrastructure, investor protection, and governance reforms, listing will remain unattractive to most firms. VL - 14 IS - 3 ER -
Business School, University of St. Thomas, Maputo, Mozambique
Business School, University of St. Thomas, Maputo, Mozambique
Business School, University of St. Thomas, Maputo, Mozambique
Information