Electronic trading and stock market participation in Africa: Does technology induce participation?

Gbenga Adamolekun, Rilwan Sakariyahu, Rodiat Lawal, Ammar Ahmed

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)
68 Downloads (Pure)

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 languageEnglish
Article number110991
JournalEconomics Letters
Volume224
Early online date24 Jan 2023
DOIs
Publication statusPublished - Mar 2023

Keywords

  • Africa
  • Electronic trading platform
  • Stock market participation
  • Sub-Saharan Africa
  • Technology

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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