Capital Markets Development in Emerging Economies: Institutions, Macroeconomic and Microstructure Determinants of Stock Market Development in Kenya

Despite the many efforts undertaken to foster financial development, capital markets in many developing economies remain underdeveloped. These reforms have not catapult the development of these markets to global standards. New stock exchanges are being created every year in Africa, but these markets remain shallow in listing and liquidity, with high volatility. Thus policymakers have no clear guidance on how to promote securities market development. Scholars are also widely divided on measures of market development, as well as, the factors which influence the level of market development. These issues are even more aggravated given the poor understanding of securities markets in developing countries. This book examines the institutional, market microstructural and macroeconomic determinants of securities market development in Kenya. Finance scholars interested in studying securities market development will find it a useful learning and research reference material. Capital markets regulators and management interested in developing their markets will also find the book important in designing reform prescriptions targeted at promoting market development.