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Title Examining the financial factor affecting the decision of demutualization of exchanges

Author(s) Zaib Rasool

Abstract Purpose of this study is examining the financial factor affecting the decision of demutualization of exchanges. Sample of 24 stock Exchanges that are the member world federation exchange have been taken to find out the actual factors and forces that influence demutualization 12 of them are mutual and 12 of them are demutualized. Probit Extreme Bound Analysis is used to produce results and it shows. In the case demutualization of stock exchange international alliances, market integration unfold flourishing and growth avenues can be done and thus potential synergies can be enhanced. In Probit Extreme Bound Analysis (PEBA) Debt on Assets emerged as robust factor affecting the propensity to demutualize. The Value of Debt on Assets (-0.043, P< 0.05) that depicts negative. Impact of Debt on Assists ratio on the propensity of Exchange to demutualize. This shows that that if the level of debt increases then the financial burden on exchanges has been increased. Due to this exchange could not justify their existence as mutual firm in globalized competitive marked. They converted their status from mutual to demutualize.

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2019-10-24

Subject Finance

Publisher NUML

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Format APA

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