Abstract
This study examines the effect of migrating to electronic trading platforms on stock market participation among African stock exchanges. Using Bayesian estimations, we demonstrate that transitioning from a physical to an electronic stock exchange decreases trading activity on the stock exchange whilst increasing listing. Our findings further reveal that the impact of migration is more pronounced for non-Sub-Saharan African countries relative to Sub-Saharan countries. In terms of policy, the results imply that African exchanges cannot optimise the efficiency of their stock markets simply by migrating to electronic trading platforms.
Original language | English |
---|---|
Article number | 110991 |
Journal | Economics Letters |
Volume | 224 |
Early online date | 24 Jan 2023 |
DOIs | |
Publication status | Published - Mar 2023 |
Keywords
- Africa
- Electronic trading platform
- Stock market participation
- Sub-Saharan Africa
- Technology
ASJC Scopus subject areas
- Finance
- Economics and Econometrics