Challenges and Prospects towards the Establishment of Stock Exchange Market in Ethiopia

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The main objective of stock exchange market is to Organize and regulate financial market where securities are bought and sold at prices governed by the forces of demand and supply. However, it is not established in Ethiopia while establishment brings opportunities and also poses challenges to the establisher. This study examined challenges and prospects towards the establishment of stock exchange market in Ethiopia and described the effects by considering institutional infrastructures frameworks, public awareness and trust in share investment, technological infrastructures and macro-economic levels as independent variables. Both primary and secondary sources of data were used for the study. To attain its objective, the research was conducted on share companies incorporated in Ethiopia, government officials and the share dealers of these share companies. Thus, 90 share companies were selected as a sample from share company managers while 5 government officials and 5 share company dealers were selected purposively using nonprobability purposive sampling method making the total sample size 100 for this study. The result revealed that legal and regulatory framework, insufficient technological infrastructure, and low level of public awareness as a challenge of establish stock market in Ethiopia. Also, the prospects include the economic growth of the country, the agenda of poverty reduction, privatization effort and unexploited resources. Thus, the researcher recommends the government to take real pragmatic measures to establish stock market and further reforming in the legal, institutional and technological requirements that are necessary


A Research thesis Submitted in Partial Fulfillment for the Award of Master in Accounting and Finance


Capital market and financial market, Ethiopian stock market, Stock exchange