Factors Affecting Institutional Investors Participation in Ethiopian Capital Market
| dc.contributor.advisor | Dakito Alemu (PhD) | |
| dc.contributor.author | Natnael Tesera | |
| dc.date.accessioned | 2026-03-03T05:09:38Z | |
| dc.date.available | 2026-03-03T05:09:38Z | |
| dc.date.issued | 2025-08 | |
| dc.description.abstract | The study aims to investigate the key factors affecting the participation of institutional investors in the Ethiopian capital market. Employing a mixed research design, the study integrated descriptive and explanatory components to provide a comprehensive understanding of the institutional investors' readiness to engage with this emerging market. The research employed a mixed-methods approach, combining quantitative and qualitative data collection and analysis. The target population for the study included a diverse range of institutional investors seeking to participate in the Ethiopian capital market such as insurance companies, microfinance institutions, federal and regional government entities, state-owned enterprises, and pension and retirement funds. For the qualitative component, a purposive sampling technique was utilized to gather in-depth insights from key informants. The quantitative phase of the study employed a stratified random sampling approach to ensure representation from the different types of institutional investors. Descriptive analysis revealed a moderate perception of the legal and regulatory framework, with concerns about compliance and enforcement. However, inferential analyses showed a significant positive correlation and influence of these factors on investor readiness, emphasizing the need for improved clarity and harmonization. Knowledge factors (human capital and information access) were perceived negatively descriptively, yet inferential analysis highlighted their significant positive impact on readiness, indicating a need for enhanced financial literacy and information availability. Resource factors showed mixed perceptions descriptively, but inferential analysis identified them as the strongest positive predictor of readiness. While overall investor readiness was moderately positive descriptively, inferential analyses confirmed the significant positive influence of the legal and regulatory environment, knowledge, and resources. The study concludes that effective institutional investor participation hinges on a supportive legal and regulatory framework, enhanced knowledge and information access, and adequate resources, particularly technological infrastructure and human capital. Recommendations include an immediate focus on strengthening the legal and regulatory environment, a mid-term priority on enhancing knowledge and access, and a long-term strategy to facilitate resource development through collaborative efforts | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/7754 | |
| dc.language.iso | en_US | |
| dc.publisher | Addis Ababa University | |
| dc.subject | Institutional Investors | |
| dc.subject | Ethiopian Capital Market | |
| dc.subject | Legal and Regulatory Framework | |
| dc.subject | Knowledge Factors | |
| dc.subject | Resource Allocation | |
| dc.subject | Institutional Readiness | |
| dc.subject | Emerging Markets | |
| dc.title | Factors Affecting Institutional Investors Participation in Ethiopian Capital Market | |
| dc.type | Thesis |