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

Gbenga Adamolekun; Rilwan Sakariyahu; Rodiat Lawal; Ammar Ahmed

doi:10.1016/j.econlet.2023.110991

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

Gbenga Adamolekun (Lead / Corresponding author)
, Rilwan Sakariyahu
, Rodiat Lawal
, Ammar Ahmed

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

233 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 language	English
Article number	110991
Number of pages	5
Journal	Economics Letters
Volume	224
Early online date	24 Jan 2023
DOIs	https://doi.org/10.1016/j.econlet.2023.110991
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

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10.1016/j.econlet.2023.110991Licence: CC BY

Final Published VersionFinal published version, 659 KBLicence: CC BY

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title = "Electronic trading and stock market participation in Africa: Does technology induce participation?",

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.",

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AU - Adamolekun, Gbenga

AU - Sakariyahu, Rilwan

AU - Lawal, Rodiat

AU - Ahmed, Ammar

PY - 2023/3

Y1 - 2023/3

N2 - 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.

AB - 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.

KW - Africa

KW - Electronic trading platform

KW - Stock market participation

KW - Sub-Saharan Africa

KW - Technology

UR - https://www.scopus.com/pages/publications/85147099028

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DO - 10.1016/j.econlet.2023.110991

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VL - 224

JO - Economics Letters

JF - Economics Letters

M1 - 110991

ER -

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

Abstract

Keywords

ASJC Scopus subject areas

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