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Determinants of corporate listings on stock markets in Sub-Saharan Africa: Evidence from Ghana

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  • Acquaah, Moses

Abstract

Sub-Saharan Africa (SSA) economies have established stock markets to encourage the mobilization of domestic funds and attract foreign capital in-flows for corporate investment and growth. But domestic corporate listings on stock markets have been abysmal. This study examines the reasons behind the low patronage of stock markets by domestic firms in SSA using Ghana as a case study. Data for the study was obtained from 110 out of the 200 largest firms in Ghana and included firms which were listed on the stock market and unlisted firms over three time-periods from 2002 to 2009. The findings show that knowledge about stock market dynamics and financial institutions' support encourages listing on the stock market. However, extensive information and disclosure costs requirements, and loss of ownership and control discourage listing on the stock market.

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  • Acquaah, Moses, 2015. "Determinants of corporate listings on stock markets in Sub-Saharan Africa: Evidence from Ghana," Emerging Markets Review, Elsevier, vol. 22(C), pages 154-175.
    • Handle: RePEc:eee:ememar:v:22:y:2015:i:c:p:154-175
    DOI: 10.1016/j.ememar.2014.10.002
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    3. Jonathan A. Batten & Xuan Vinh Vo, 2016. "Bank risk shifting and diversification in an emerging market," Risk Management, Palgrave Macmillan, vol. 18(4), pages 217-235, December.
    4. Owusu Junior, Peterson & Tweneboah, George, 2020. "Are there asymmetric linkages between African stocks and exchange rates?," Research in International Business and Finance, Elsevier, vol. 54(C).
    5. McDonald Gumbo & Maxwell Sandada, 2018. "The Determinants of Stock Market Participation: Evidence from Individual Investors in Zimbabwe," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(4), pages 642-654, AUGUST.
    6. Batten, Jonathan A. & Lucey, Brian M. & Peat, Maurice, 2016. "Gold and silver manipulation: What can be empirically verified?," Economic Modelling, Elsevier, vol. 56(C), pages 168-176.
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    More about this item

    Keywords

    Corporate listings; Stock market efficiency; Ownership and control rights; Information disclosure requirements; Stock market development; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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