Stakeholders' Perceptions and Predictions of Stock Exchange Demutualization: The Case of Kuwait Stock Exchange
In this paper, we investigate the perceptions of various stakeholders in relation to the benefits stated in the new capital markets authority law (CMAL) to be achieved when Kuwait Stock Exchange (KSE) is demutualized. We use a survey questionnaire to solicit their agreement on the achievement of sp...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2017-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/4769 |
| _version_ | 1797907371784142848 |
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| author | Talla M Aldeehani Amani Kh. Bouresli |
| author_facet | Talla M Aldeehani Amani Kh. Bouresli |
| author_sort | Talla M Aldeehani |
| collection | DOAJ |
| description |
In this paper, we investigate the perceptions of various stakeholders in relation to the benefits stated in the new capital markets authority law (CMAL) to be achieved when Kuwait Stock Exchange (KSE) is demutualized. We use a survey questionnaire to solicit their agreement on the achievement of specific benefits after six years of activation. Factor analysis was used to extract four new constructs from the collected responses. Market harmony is the construct elected to be the independent variable affecting three dependent variables: stability, corporate governance and attractiveness variables. The results indicate that the different stakeholders have the same perception that privatization of KSE will lead to the achievement of all benefits promised. Furthermore, all three dependent variable are found to be significantly affected by market harmony. These results contradict with the results of an earlier study of the same research project on the relationship between firm performance and market reforms. We provide discussions of the results and further implications.
Keywords: Stock exchange demutualization, corporate governance, market reforms, factor analysis
JEL Classifications: G10, G18, G20 |
| first_indexed | 2024-04-10T10:35:42Z |
| format | Article |
| id | doaj.art-8d8f92e91aa74f0cbf7b427aada9f921 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:35:42Z |
| publishDate | 2017-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-8d8f92e91aa74f0cbf7b427aada9f9212023-02-15T16:20:51ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-07-0174Stakeholders' Perceptions and Predictions of Stock Exchange Demutualization: The Case of Kuwait Stock ExchangeTalla M Aldeehani0Amani Kh. Bouresli1College of Business Administration, Kuwait UniversityCollege of Business Administration, Kuwait University In this paper, we investigate the perceptions of various stakeholders in relation to the benefits stated in the new capital markets authority law (CMAL) to be achieved when Kuwait Stock Exchange (KSE) is demutualized. We use a survey questionnaire to solicit their agreement on the achievement of specific benefits after six years of activation. Factor analysis was used to extract four new constructs from the collected responses. Market harmony is the construct elected to be the independent variable affecting three dependent variables: stability, corporate governance and attractiveness variables. The results indicate that the different stakeholders have the same perception that privatization of KSE will lead to the achievement of all benefits promised. Furthermore, all three dependent variable are found to be significantly affected by market harmony. These results contradict with the results of an earlier study of the same research project on the relationship between firm performance and market reforms. We provide discussions of the results and further implications. Keywords: Stock exchange demutualization, corporate governance, market reforms, factor analysis JEL Classifications: G10, G18, G20https://www.econjournals.com/index.php/ijefi/article/view/4769 |
| spellingShingle | Talla M Aldeehani Amani Kh. Bouresli Stakeholders' Perceptions and Predictions of Stock Exchange Demutualization: The Case of Kuwait Stock Exchange International Journal of Economics and Financial Issues |
| title | Stakeholders' Perceptions and Predictions of Stock Exchange Demutualization: The Case of Kuwait Stock Exchange |
| title_full | Stakeholders' Perceptions and Predictions of Stock Exchange Demutualization: The Case of Kuwait Stock Exchange |
| title_fullStr | Stakeholders' Perceptions and Predictions of Stock Exchange Demutualization: The Case of Kuwait Stock Exchange |
| title_full_unstemmed | Stakeholders' Perceptions and Predictions of Stock Exchange Demutualization: The Case of Kuwait Stock Exchange |
| title_short | Stakeholders' Perceptions and Predictions of Stock Exchange Demutualization: The Case of Kuwait Stock Exchange |
| title_sort | stakeholders perceptions and predictions of stock exchange demutualization the case of kuwait stock exchange |
| url | https://www.econjournals.com/index.php/ijefi/article/view/4769 |
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