Corporate Finance

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Browsing Corporate Finance by Author "Dakito Alemu (PhD)"

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    Assessment of Factors Influencing Bond Market Development in Developing Countries: The Case of Ethiopia
    (Addis Ababa University, 2024-10) Awgichew Abiye; Dakito Alemu (PhD)
    The development of a robust bond market is crucial for the advancement of the financial sector and the overall economic growth of a country. The aim of this research was to explore the key factors influencing the development of bond market in Ethiopia. The study employed a quantitative research approach to examine and describe the political, economical, regulatory, infrastructure and intermediaries and investors’ base dimensions based on the data collected through survey method. The study was conducted over 130 respondents from government organizations, national and international financial institutions and bond market consultants. The data was collected using 5-point Liker scale questionnaire and purposive sampling technique. The findings highlight that political instability, macroeconomic volatility, and inadequate infrastructure are unfavorable for the development of the bond market in Ethiopia. The study also reveals positive aspects, such as the presence of regulatory frameworks promoting market integrity and transparency, but emphasizes the need for further reforms and investments. Specific recommendations include implementing political and economic reforms, enhancing regulatory independence, investing in modern market infrastructure, and promoting a diverse investor base. By addressing these challenges and leveraging identified opportunities, Ethiopia can create a vibrant bond market that contributes to economic stability and growth. This paper provides policymakers, regulators, and market participants with actionable insights and strategies for fostering a resilient bond market in Ethiopia. Key Words: Bond market, Bond market development, Bond market in Ethiopia, Factors influencing bond market development