Challenges and Prospects towards the Establishment of Stock Exchange Market in Ethiopia
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Date
2020-06
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Publisher
A.A.U
Abstract
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
Description
A Research thesis Submitted in Partial Fulfillment
for the Award of Master in Accounting and Finance
Keywords
Capital market and financial market, Ethiopian stock market, Stock exchange