International Journal of Finance and Banking Research
Volume 1, Issue 1, October 2015, Pages: 1-11
Received: Sep. 20, 2015;
Accepted: Sep. 25, 2015;
Published: Sep. 28, 2015
Views 7870 Downloads 138
K. M. Anwarul Islam, Department of Business Administration, the Millennium University, Dhaka, Bangladesh
Sk. Alamgir Hossain, Departmentof Finance, Faculty of Business Studies, Jagannath University Dhaka, Bangladesh
The Dhaka Stock Exchange is the prime bourse of the country. Through its nonstop highly fault-tolerant screen based automated trading system, the exchange can offer facilities for transparent and highly efficient mechanism provisions for secondary market activities of shares, debentures and wide varieties of other securities. In this research paper, we used two stock exchanges that have already demutualized and gone public: Hong Kong Stock Exchange, and London Stock Exchange and analyzed pre and post-demutualization performance of them. The reason of taking two exchanges of different sizes is to provide better suggestion for Dhaka Stock Exchange. Using data from the financial statements from 1999 to 2013 and by the means of descriptive statistics analysis we show that all the two demutualized exchanges have a better post listing share and operating performance than mutual exchanges.
K. M. Anwarul Islam,
Sk. Alamgir Hossain,
Demutualization of Dhaka Stock Exchange: Opportunities and Challenges, International Journal of Finance and Banking Research.
Vol. 1, No. 1,
2015, pp. 1-11.
Aggarwal, R. (2002). Demutualization and Corporate Governance of Stock Exchanges, Journal of Applied Corporate Finance, Vol. 18, Number 1, 106-113.
Aggarwal, R. (2006). Demutualization and Public Offering of Financial Exchange, Journal of Applied Corporate Finance, Vol. 18, Number 3, 96-106.
Altaf S (2009), “Demutualization of Stock Exchanges: A Case Study: London Stock Exchange and Hong Kong Stock Exchange”. Retrieved from University of Skövde websitehttp://urn.kb.se/ resolve? urn=urn:nbn:se:his:diva-3129.
Cresswell, J.W. (2003). Research Design: Qualitative, Quantitative and Mixed method approaches (2nd ed.), Sage Publications, California.
Domowitz, I, Steil, B. (1999). Automation, trading costs and the structure of the securities trading industry. Brookings-Wharton Papers on Financial Services, 33-81.
Elliott J (2002) Demutualization of securities exchanges: a regulatory perspective. IMF Working Paper.
Hart O, Moore J (1996) the governance of exchanges: member’s cooperatives versus outside ownership. Oxf Rev Econ Policy 12(4):53–69.
Galper, J. (1999). Three business models for the stock exchange industry, a working paper, International Federation of stock exchanges.
Karmel R (2000) Turningseatsinto shares: implications of demutualization for the regulation of stock and futures exchanges. Working paper.
Krishnamurti C, Sequeira JM, Fangjian F(2003) Stock exchange governance and market quality. J Bank Finance 27(9):1859–1878.
Lee, R. (2002). the future of securities exchanges. Brookings-Wharton Papers on Financial Services, 1-33.
Mendiola A, O’ Hara M (2003) Taking stock in stock markets: the changing governance of exchanges. Working Paper, Cornell University.
Otchere, I. (2006). Stock exchange self-listing and value effects. Journal of Corporate Finance, 926-953.
Otchere, I. &Abou-Zied, K. (2007). Stock exchange demutualization, self-listing and performance: The case of the Australian stocke xchange, Journal of Banking& Finance Vol. 32, Issue April 4’ 2008, Pages 512-525.
Pirrong C (2000) Technological change, for profit exchanges, and self-regulation in financial markets. Working Paper, Washington University.
Serifsoy, B. (2006). Essays on stock exchange efficiency, Business Models and Governance, 2006. http://www.wiwi.uni-frankfurt.de/schwerpunkte/finance/wp/1360.pdf.
World Federation of exchanges, 2013. WFE Annual Research & Statistics 1999-2013.
Newspaper: The Financial Express, Daily Bonik Barta, Daily Prothom-Alo, The Daily Star.
Websites:www.dsebd.org, www.sec.gov.bd,www.reuters.com, www.finance.yahoo.com, www.bloomberg.com, www.world-exchanges.org/statistics, www.londonstockexchange.com, www.hkex.com.hk, www.stockopedia.com/.
Research: LSE Annual Research (2000-2013), HKSE Annual Research (2000-2013).