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PROSPECTIVE PERFORMANCE OF A DEMUTUALISED STOCK EXCHANGE: A CASE STUDY OF JOHANNESBURG STOCK EXCHANGE

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dc.contributor.author Ramadhani, Unguu
dc.date.accessioned 2020-05-06T12:15:41Z
dc.date.available 2020-05-06T12:15:41Z
dc.date.issued 2013
dc.identifier.uri http://hdl.handle.net/11192/3083
dc.description A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of Masters Degree of Science in Accounting & Finance 2013 en_US
dc.description.abstract Interest in the subject of demutualization of stock exchange in African stock markets is fairly growing but still at nascent stage. Only two stock exchanges have formerly demutualized namely Johannesburg Stock Exchange and Nairobi Stock Exchange (Lumumba, 2013). Nigeria Stock Exchange has recently embarked on the demutualization process (www.nse.co.ng). At present, most African stock exchanges operate as mutual companies (see table below). Mutual funds were once the most important vehicles of investment. For instance, in the United States, ownership of stock, bond and money market mutual funds rose from 6 percent of the US households in 1980 to 37 percent in 1996 while the total assets held by mutual funds soared by 2,100 percent from $135 billion to $3.5 trillion at the end of 1996 (Alexander et al. 1998). The basic characteristics of a mutual company are those companies which do not have shareholders and share capital. The mutual company is a company owned and managed by the members. The study analyzed the post demutualization stock performance and operating performance of JSE in comparison with pre-demutualization period. A case study design of JSE was used in analyzing data by using descriptive statistics and hypotheses tested by using Chi square test. In this study the demutualized governance structure coupled with directors’ performance revealed that the same add value to the overall performance of a stock exchange, this has been supported by improved performance of JSE soon after demutualization. The findings in transparency and disclosure as obtained from the case study and responses to questionnaire by respondents suggest that for a demutualized exchange to achieve its demutualization objectives the same has to comply with regulatory bodies’ transparency and disclosure requirements and strive to raise the bar in a continuous improvement basis. Also the study indicates internal control policies and procedures must be adequate to identify potential errors, fraud, or illegal acts. In concluding this research report the researcher earmarked the importance of appointment/selection of new directors and advised that the boards should seek to ensure potential appointees best match the needs of the stock exchange en_US
dc.language.iso en en_US
dc.publisher Mzumbe University en_US
dc.subject DEMUTUALISED-STOCK-EXCHANGE en_US
dc.subject DEMUTUALIZATION en_US
dc.title PROSPECTIVE PERFORMANCE OF A DEMUTUALISED STOCK EXCHANGE: A CASE STUDY OF JOHANNESBURG STOCK EXCHANGE en_US
dc.type Thesis en_US


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