Browsing by Author "Hayilemichale Birhanu"

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    Challenges and Opportunities of Establishing a Stock Market in Ethiopia with Particular Reference to the Selected Business Sectors
    (Addis Ababa University, 2022-06) Hayilemichale Birhanu; Saleamlak Mola (PhD)
    Ethiopia's economy has been growing, with the exception of recent economic vibrations, requiring a stable environment for business organizations and profitability. The country need massive capital movement to realizing the potential and long-term inclusive growth. Capital market or stock market exchange is one of the strategies for raising capital. Despite the fact that the government has developed a draft capital market establishment declaration that is now being discussed, the country has to create a stock market. On the other hand, the research looked into the opportunities and problems of establishing a stock exchange in Ethiopia. Besides the works mentioned above, little has been published on Ethiopia's intention to build a stock exchange market focused on financial industries, which are good examples of well-functioning share enterprises. This paper aimed to identify challenges and opportunities of establishing a stock market in Ethiopia with particular reference to the selected business sectors. A qualitative and descriptive research design is used to achieve this objective. Primary data was gathered from Minister of finance (MOF) legal department officers, chamber of commerce experts, and legal advisers at the National Bank of Ethiopia and Secondary data was gathered via online survey, and an assessment of publications thought to be essential. The data were analyzed using the factors that influence the establishment of a stock market in Ethiopia. Insufficient laws and regulations, an unstable economic growth, a lack of corporate governance, insufficient telecom and technology infrastructure, a poor macroeconomic circumstance, a lack of accounting and auditing standards, and a low level of public awareness were identified as challenges to the establishment of a stock exchange in Ethiopia. According to the findings, detailed legal and institutional reform, financial sector liberalization, integration and constant monitoring of accounting and auditing styles, public awareness of the stock market, and overall macroeconomic stability are all necessary for a well-functioning stock market once it is established. Key Words: Stocks, Stock Market, Initial Public Offerings, Secondary Market