An investigation into the factors that account for the low equity listing on the Ghana Stock Exchange

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Ghana Stock Exchange is performing well and with the development of the private sector, more firms would need long-term capital to expand operations, and the exchange could be a good source of raising long-term capital for expansions. The purpose of this research is to explore the factors that account for the low equity listing on the Ghana Stock Exchange and measures that can be employed to attract firms to list. This study is exploratory in nature and data was collected through interviews and questionnaire distribution. Results from the research indicate that the reason why firms are not listed could be attributed to the lack of education regarding activities on the stock market, fear of losing control of the business to the public, cost concerns, and the unattractiveness of the exchange. Data from this study also showed that firms have plans to list if certain measures are employed. These measures include an increase in public education, active promotion of the exchange by the Government, and cost reductions. It is recommended that, more education is needed to inform the public about activities of the stock market. Also, government should actively promote the activities of the exchange by offloading state owned enterprises to the exchange rather than to strategic investors. Ghana Stock Exchange can also integrate with other African exchanges to give listed firms greater access to funds. Key words: Ghana Stock Exchange, equity listing, unlisted firms.
Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2014
Ghana, Ghana Stock Exchange (GSE), equity listing, unlisted firms