Faculty of Commerce, Law and Management (ETDs)

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Has files: YesSubject: search.filters.subject.Capital market development

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    Capital market development and investment growth in sub -Saharan Africa
    (University of the Witwatersrand, Johannesburg, 2021) Mgeta, Charles Elie
    This study sought to investigate the impact of capital market development on investment growth in six Sub-Saharan Africa countries. Literature review identified three main factors that can proxy capital market development in an economy, and that can also directly affect investment growth. Investment growth is proxied by changes in gross fixed capital or capital formation. Data used in this study span a period of 18 years converted from quarterly to monthly frequency. Quarterly frequency data was obtained from DataStream terminal raging from January 2000 to December 2017. Broad Market Liquidity, Changes in the Index price, and market capitalization are regressed against investment growth variable using Pooled OLS and Panel Causality test. Results indicate that market liquidity, return of the market and market capitalization are significantly positive determinates of investment growth in the six countries included in the study. Panel Causality Test reveal that market liquidity and market return have reverse causal relationship. On policy grounds, this study recommends to governments in Sub-Saharan Africa to create an enabling environment for capital market to flourish and by so doing, investment growth will be attracted
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    Does capital market development influence capital structure choices of firms?
    (2021) Selatitsana, Phatsisi
    This study investigated on the influence of capital market development on capital structure choices of selected non-financial firms in emerging as well as in frontier markets from period 2010 to 2017. To measure capital market development, stock market turnover ratio and ratio of domestic credit to private sector by commercial banks to GDP were used. The study finds that beside firm specific factors and other country-level factors which are used to explain financing choices of firms, capital market development as well affects the financing decisions of listed firms. This study generally, discovers that the development of equity and debt markets are both significant in increasing access to funding by firms and therefore, inform the choice of debt ratios employed by firms both in emerging and frontier markets. The findings of this thesis found that emerging markets enterprises use equity markets as a substitute for debt funding, but the preferable source of finance for firms is long-term debt with the highest positive coefficient. Conversely, in frontier markets, firms are using stock market as a complementary to debt financing, but the most preferred source of financing is short-term debt having highest coefficient