60 @ 60: Development of the Nairobi Securities Exchange
| dc.creator | Waweru, Freshia Mugo | |
| dc.date | 08/15/2014 | |
| dc.date | Fri, 15 Aug 2014 | |
| dc.date | Fri, 15 Aug 2014 12:39:51 | |
| dc.date | Fri, 15 Aug 2014 12:39:51 | |
| dc.date.accessioned | 2015-03-18T11:29:15Z | |
| dc.date.available | 2015-03-18T11:29:15Z | |
| dc.description | Conference paper | |
| dc.description | The Nairobi Securities Exchange (NSE) was established in 1954 and recently celebrated its 60th anniversary. However, the number of listed companies over th is period have been minimal - currently, there are 63 listed companies but four has been suspended from trading. This study therefore sought to investigate the specific factors influencing company listings at the NSE. The study sought to establish: first, the factors that influences listing decision among the listed companies; and secondly; to establish why some companies, which have met the listing requirements threshold have not opted to publicly list despite the numerous efforts by the exchange. For the first objective, a regression analysis was carried out to determine which factors influences listing decision. The factors analyzed included; stock market liquidity, stock market volatility, the legal and regulatory framework, and political environment. The industry, market . automation and taxation were used as control variables. The model was significant at 5% lever with an adjusted R squared of 68.8%. Political environment was the most significant variable followed by stock market liquidity and then stock market variability. The industry into which a company belongs to as well as the market automation were found to be insignificant at 5% significant levels. The second objective used questionnaires to establish why the non listed cornparues which have met the listing requirements were not yet listed. Most non-listed considered the legal and regulatory framework as too stringent and hence the leading hindrances to listing. The companies also considered the listing and maintenance costs as too high. In addition, most companies did not want the public scrutiny that accompanies a listed company. Other companies were family owned and wanted the status quo while others did not want dilution of ownership. Most of the non listed companies considered access to wide capital base as the leading reason why they could consider listing. | |
| dc.description.abstract | The Nairobi Securities Exchange (NSE) was established in 1954 and recently celebrated its 60th anniversary. However, the number of listed companies over th is period have been minimal - currently, there are 63 listed companies but four has been suspended from trading. This study therefore sought to investigate the specific factors influencing company listings at the NSE. The study sought to establish: first, the factors that influences listing decision among the listed companies; and secondly; to establish why some companies, which have met the listing requirements threshold have not opted to publicly list despite the numerous efforts by the exchange. For the first objective, a regression analysis was carried out to determine which factors influences listing decision. The factors analyzed included; stock market liquidity, stock market volatility, the legal and regulatory framework, and political environment. The industry, market . automation and taxation were used as control variables. The model was significant at 5% lever with an adjusted R squared of 68.8%. Political environment was the most significant variable followed by stock market liquidity and then stock market variability. The industry into which a company belongs to as well as the market automation were found to be insignificant at 5% significant levels. The second objective used questionnaires to establish why the non listed cornparues which have met the listing requirements were not yet listed. Most non-listed considered the legal and regulatory framework as too stringent and hence the leading hindrances to listing. The companies also considered the listing and maintenance costs as too high. In addition, most companies did not want the public scrutiny that accompanies a listed company. Other companies were family owned and wanted the status quo while others did not want dilution of ownership. Most of the non listed companies considered access to wide capital base as the leading reason why they could consider listing. | |
| dc.identifier.uri | http://hdl.handle.net/11071/3816 | |
| dc.language | eng | |
| dc.rights | By agreeing with and accepting this license, I (the author(s), copyright owner or nominated agent) agree to the conditions, as stated below, for deposit of the item (referred to as .the Work.) in the digital repository maintained by Strathmore University, or any other repository authorized for use by Strathmore University. Non-exclusive Rights Rights granted to the digital repository through this agreement are entirely non-exclusive. I understand that depositing the Work in the repository does not affect my rights to publish the Work elsewhere, either in present or future versions. I agree that Strathmore University may electronically store, copy or translate the Work to any approved medium or format for the purpose of future preservation and accessibility. Strathmore University is not under any obligation to reproduce or display the Work in the same formats or resolutions in which it was originally deposited. SU Digital Repository I understand that work deposited in the digital repository will be accessible to a wide variety of people and institutions, including automated agents and search engines via the World Wide Web. I understand that once the Work is deposited, metadata may be incorporated into public access catalogues. I agree as follows: 1.That I am the author or have the authority of the author/s to make this agreement and do hereby give Strathmore University the right to make the Work available in the way described above. 2.That I have exercised reasonable care to ensure that the Work is original, and to the best of my knowledge, does not breach any laws including those relating to defamation, libel and copyright. 3.That I have, in instances where the intellectual property of other authors or copyright holders is included in the Work, gained explicit permission for the inclusion of that material in the Work, and in the electronic form of the Work as accessed through the open access digital repository, or that I have identified that material for which adequate permission has not been obtained and which will be inaccessible via the digital repository. 4.That Strathmore University does not hold any obligation to take legal action on behalf of the Depositor, or other rights holders, in the event of a breach of intellectual property rights, or any other right, in the material deposited. 5.That if, as a result of my having knowingly or recklessly given a false statement at points 1, 2 or 3 above, the University suffers loss, I will make good that loss and indemnify Strathmore University for all action, suits, proceedings, claims, demands and costs occasioned by the University in consequence of my false statement. | |
| dc.subject | Nairobi Securities Exchange | |
| dc.subject | Kenya | |
| dc.title | 60 @ 60: Development of the Nairobi Securities Exchange | |
| dc.type | Conference Paper |
Files
Original bundle
1 - 1 of 1
Loading...
- Name:
- Abstract.pdf
- Size:
- 420.35 KB
- Format:
- Adobe Portable Document Format
- Description:
- Abstract