Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport
ISSN (Print): 2376-1326 ISSN (Online): 2376-1334 Website: http://www.sciepub.com/journal/jbe Editor-in-chief: Pr. Abdelfatteh Bouri
Open Access
Journal Browser
Go
Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2015, 3(3), 96-109
DOI: 10.12691/jbe-3-3-2
Open AccessArticle

Uganda Securities Exchange as a Medium of Trade: To What Extent Have the Private and Public Sectors Embraced It?

Mshilla Maghanga1, and William Quisenberry2

1Faculty of Business and Development Studies, Gulu University, P. O. Box 166 Gulu, Uganda

2Department of Management, SMC University, Zug, Switzerland

Pub. Date: January 03, 2016

Cite this paper:
Mshilla Maghanga and William Quisenberry. Uganda Securities Exchange as a Medium of Trade: To What Extent Have the Private and Public Sectors Embraced It?. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2015; 3(3):96-109. doi: 10.12691/jbe-3-3-2

Abstract

The purpose of this paper is to review the extent to which the Uganda Securities Exchange has been embraced as a medium of trade and investment by the public considering that a well-functioning stock market enhances prospects for long-term economic growth. Only seventeen companies are trading on the Exchange in its 17 years of existence. This study sought to explore the extent to which the Exchange has been embraced locally. A cross-sectional design that involved both quantitative and qualitative study approaches was adopted. The study sample was drawn from employees of government departments, listed, and unlisted companies. Data were collected using questionnaires and interview guides. It was established that, as much as the Exchange grew over time, trading was still lukewarm with very many potential companies reluctant to list on the USE. Generally, investors are still apathetic about the Exchange. It is recommended that the Government should support the marketing, automation, and modernisation of the Exchange; and the Exchange should exploit the stock market trading potential to entice more investors to it.

Keywords:
stock market economic growth UGANDA securities exchange medium of trade

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]  Cohn, Staurt R. and Zake, Fred (1999). Capital Market Development in Uganda. International Law Institute Uganda Legal Centre of Excellence, Kampala.
 
[2]  Creswell, J. W. & Miller, D. L. 2000. Determining validity in qualitative inquiry. Theory into Practice, 39(3), 124-131.
 
[3]  Gliem, Joseph A. and Gliem, Rosemary R. (2003). Calculating, Interpreting, and Reporting Cronbach’s Alpha Reliability Coefficient for Likert-Type Scales. Retrieved June 12, 2013 from https://scholarworks.iupui.edu/bitstream/handle/1805/344/Gliem+&+Gliem.pdf?sequence=1.
 
[4]  Ilmolelian, Peter David. (2005).The determinants of the Harare Stock Exchange (HSE) market capitalisation: MPRA Paper No. 1418. Retrieved June 15, 2009, from http://mpra.ub.uni-muenchen.de/1418/.
 
[5]  Kalungi, Nicholas (January 2013). Umeme share stays flat. Retrieved February 4, 2013, from http://www.monitor.co.ug/Business/Commodities/Umeme-share-stays-flat/-/688610/1662506/-/rn6dsvz/-/index.html.
 
[6]  McFadzean, Elspeth (2007). Strauss and Corbin’s Coding Methodology. Retrieved January 20, 2009, from http://www.distinctivemanagement.biz/Assets/courses/mbaKnowledgeBytes/Coding%20Methodology%20IC03.pdf.
 
[7]  National Insurance Corporation [NIC] (2009). Prospectus. Retrieved April 28, 2012 from http://ribacapital.com/wp-content/uploads/2010/01/NIC-IPO-Prospectus.pdf.
 
[8]  New Vision. (2008, July 6). Rights issue information memorandum, Kampala, New Vision Printing and Publishing Company Ltd.
 
[9]  Ngai, Mbatau. (2008, April 29). Uganda: Securities Exchange in record growth, The Daily Monitor, [Electronic Version].
 
[10]  Petram, Lodewijk (2011). PhD Thesis: The World’s First Stock Exchange: How the Amsterdam market for Dutch East India Company shares became a modern securities market, 1602-1700. Retrieved October 20, 2011 from http://dare.uva.nl/document/201694.
 
[11]  Sanya, Samuel (November 2012). UMEME lists on Stock Exchange. Retrieved January 27, 2013, from http://www.newvision.co.ug/news/637744-umeme-lists-on-stock-exchange.html.
 
[12]  Stanbic Bank. (2008). Uganda Blue Print, January 2008, Research Economics
 
[13]  Stock Exchange. (2008). Retrieved September 30, 2008, from Wikipedia: http://en.wikipedia.org/wiki/Stock_exchange
 
[14]  Thomas, David R. (2003). A general inductive approach for qualitative data analysis. American Journal of Evaluation 2006 27: 237.
 
[15]  UBOS [Uganda Bureau of Statistics] (2011). Population. Retrieved November 14, 2011from http://www.ubos.org/?st=pagerelations2&id=17&p=related%20pages%202: Population.
 
[16]  Uganda Bureau of Statistics [UBOS]. (2008). Retrieved November 23, 2008, from http://ubos.org.
 
[17]  USE (2003). The Uganda Securities Exchange Limited Rules 2003
 
[18]  USE (2007). Uganda Securities Exchange Limited 2007 annual report [Electronic Version]. Retrieved April 3, 2009, from http://www.use.or.ug.
 
[19]  USE (2008, November). The bourse; USE celebrating 10 years of Uganda Securities Exchange [Electronic Version]. Retrieved April 3, 2009, from http://www.use.or.ug/documents/The_Bourse_USE_10th_AnniversaryMagazine_Nov_2008.pdf.
 
[20]  Wolassa L. Kumo. (2008). Stock exchange in Africa: Prospects and challenges: World Bank 2006. Private sector development blog: A market approach to development thinking. Retrieved May 18, 2009, from http://psdblog.worlbank.org/psdblog/2006/12/why_doesnt_ afri.html.
 
[21]  Yartey, Charles Amo and Adjasi, Charles Komla. (2007). Stock market development in Sub-Saharan Africa: Critical issues and challenges: IMF working paper, African department. Retrieved May 17, 2009, from www.imf.org/external/pubs/ft/wp/2007/wp07209.pdf.