An Empirical Analysis of the Impact of Demutualization on Stock Exchange Performance: Lessons for Zimbabwe

Nyangara, Davis; Musikavanhu, Tariro P

doi:10.4172/2162-6359.1000161

Cited by 5 publications

(5 citation statements)

References 40 publications

(79 reference statements)

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“…Infrastructure projects are characteristically long term in nature and for that reason they rely on efficient and effective capital markets for long-term financing. The Zimbabwe Stock Exchange (ZSE) has a long functional history having been established in 1896 and strategies have been adopted to enhance the financing potential of the market (Nyangara, Ndlovu and Tyavambiza 2016). With regard to bank market development, the ratio of bank credit to bank deposits (BCD) positively and significantly influences water and sanitation PPP financing.…”

Section: Tobit Regression Results and Discussion Of Findingsmentioning

confidence: 99%

Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing?

Mundonde¹,

Makoni²

2023

Environ Syst Res

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Background Zimbabwe envisions being an upper-middle-income economy by the year 2030. The vision 2030 has infrastructure development as a stand-out pillar upon which it is founded. The vision envisages well-developed, modern, efficient and resilient infrastructure as paramount to Zimbabwe’s economic recovery. The policy plan seeks to increase infrastructure investments in energy, transport, information technology, tourism, housing, and water and sanitation. However, a still hesitant private sector exists with regard to investment in water and sanitation infrastructure even in developed countries. Thus, the study seeks to analyse determinants of financing water and sanitation public private partnerships in Zimbabwe given that there is no consensus between reseachers on how determinant factors impact PPP investments. Methods The study applied Tobit regression methodology on data collected for the 25 years ending 2021 to investigate determinants of financing water sanitation PPPs in Zimbabwe. Tobit regression method is preferred given the censored nature of the investment values of water and sanitation public private partnerships that reached financial closure in Zimbabwe. Results In Zimbabwe, financial market development is a key financing determinant of water and sanitation public private partnerships. Both the capital and bank market development influences infrastructure financing in Zimbabwe`s water and sanitation sector. Moreover, foreign direct investment negatively and significantly relates with water and sanitation public private partnership investments. Conclusion Attracting private investment into Zimbabwe`s water and sanitation sector requires that policy design targets capital and bank market development. Reforms can be achieved through putting in place sound frameworks that facilitate effective financial intermediation systems, enhance market liquidity and lower cost of capital.

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Section: Tobit Regression Results and Discussion Of Findingsmentioning

confidence: 99%

Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing?

Mundonde¹,

Makoni²

2023

Environ Syst Res

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“…𝐻 𝑜 : 𝛽 ̂2 = 0 must be accepted against 𝐻 1 : 𝛽 ̂2 ≠ 0 4. Risk measure (β) should be the only factor that is priced by the market See (Pham, 2021;Sah, 2020;Nyangara et al, 2016;Hassan et al, 2011;Basu & Chawla, 2010;Rachev et al, 2007;Xu & Yang, 2007;Michailidis, 2006).…”

Section: Methodology and Datamentioning

confidence: 99%

Capital Asset Pricing Model for the Stock Market in Pakistan

Riaz,

Chaudhry,

Choudhary

et al. 2024

QJSS

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The Capital Asset Pricing Model (CAPM), within modern financial theory, offers a theoretical framework for pricing assets with uncertain returns. CAPM assesses systematic risk and proposes a linear relationship between risk and expected returns for any asset. It serves as a potent tool for pricing risky assets. In this present study, the trade-off between risk-return was investigated within the framework of CAPM and its validity was tested on the daily returns of companies listed in the chemical, textile and food sectors of the Pakistan stock market during the period July 2004- Feb 2014. The results of empirical testing by regression analysis supported the CAPM’s validity for these sectors in Pakistan and found CAPM β as a single factor which was priced by the market. The KSE-100 index was used as a market, and the year treasury-bills return rate was taken as a risk-free rate.

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“…Hearn (2011) remarks that the BM effect and the size effect are not significant in African markets. Similarly, Nyangara et al (2016) reject the validity of the CAPM on the Zimbabwe Stock Exchange, and according to the authors, this is primarily due to liquidity and skewness anomalies.…”

Section: 23mentioning

confidence: 99%

“…Similarly, Nyangara et al. (2016) reject the validity of the CAPM on the Zimbabwe Stock Exchange, and according to the authors, this is primarily due to liquidity and skewness anomalies.…”

Section: Microstructure and Asset Pricing: Literature Reviewmentioning

confidence: 99%

Microstructure and asset pricing: An insight on African frontier stock markets

Hikouatcha

Kengdo

Menik

et al. 2023

Bulletin of Econ Res

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This article investigates the impact of microstructure factors on asset pricing in some African stock markets. We use data on stocks listed on the Johannesburg Stock Exchange, the “Bourse Régionale des Valeurs Mobilières,” and the Nigeria Stock Exchange, and we consider international portfolio management from 2000 to 2014. Generalized least square and fixed effect are estimation methods used to highlight the effect of microstructure variables on expected return. At the same time, panel smooth transition regression (PSTR) modeling is considered to identify the thresholds in this effect. The results show that liquidity and to a lesser extent the number of trading days are the most common significant microstructure variables for all the studied markets. However, other variables’ effects on the return are specific to the considered stock markets. Furthermore, the PSTR estimator reveals that the impact of indicated factors on asset pricing is not linear because it produces a double threshold between return and microstructure.

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An Empirical Analysis of the Impact of Demutualization on Stock Exchange Performance: Lessons for Zimbabwe

Cited by 5 publications

References 40 publications

Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing?

Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing?

Capital Asset Pricing Model for the Stock Market in Pakistan

Microstructure and asset pricing: An insight on African frontier stock markets

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