The research reported in this doctoral thesis aims to contribute to the corporate finance literature, in the context of emerging markets, by focusing on two main issues: the response of stock market microstructure to institutional and policy reforms; and corporate investment decisions under uncertainty by firms listed on emerging stock markets. The thesis is structured into six chapters, comprising an introduction, four stand-alone research papers, and a conclusion. The first paper undertakes a critical review of the literature on key stock market microstructure issues; a number of promising research ideas (PRIs) are identified. The second paper takes up one of the PRIs by investigating the response of market microstructure to the revitalization of the Nairobi Stock Exchange (NSE). The econometric results suggest that the revitalization of the NSE generated microstructure improvements in terms of increased liquidity, low volatility and efficiency gains. In the third paper, the empirical analysis is extended to other emerging stock markets in Africa. The results suggest that the main revitalization reforms, which have enhanced the market microstructure of African stock exchanges, include a tight regulatory system, reforms of the trading system, and a high degree of market openness. The fourth paper empirically examines the relationship between investment and uncertainty for a panel of firms listed on the NSE. The findings are broadly consistent with the theory, and suggest that uncertainty arising from the NSE constrains firms' investment behavior. The main conclusions of the thesis are summarized in chapter 6, including some PRIs.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:633230 |
| Date | January 2002 |
| Creators | Ngugi, Rose Wanjiru |
| Publisher | University of Birmingham |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
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