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

Gbenga Adamolekun, Rilwan Sakariyahu, Rodiat Lawal and Ammar Ahmed

Economics Letters, 2023, vol. 224, issue C

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.

Keywords: Stock market participation; Electronic trading platform; Africa; Sub-Saharan Africa; Technology (search for similar items in EconPapers)
JEL-codes: G0 G3 L94 Q4 Q43 Q48 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:224:y:2023:i:c:s0165176523000162

DOI: 10.1016/j.econlet.2023.110991

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