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The Influence of Small and Medium Enterprises (SMEs) Listing on the Ghana Alternative Market (GAX): Prevailing Factors

Author

Listed:
  • Barbara Johnson
  • Richard Angelous Kotey

Abstract

Ghana Alternative Market was set up for SMEs and startups, who usually did not meet the requirements of the main stock exchange, to be listed and have access to equity financing. However, it has not been successful at getting SMEs listed, recording only 4 listings since its inception. This motivated the study to access factors that affect SMEs listing on the Ghana Alternative Market. Using a quantitative approach, we sampled 50 SMEs, 21 Brokers and 3 SMEs already listed on the GAX. We found that over half of the SMEs had some information about the GAX. However, their knowledge with regards to the benefits of listing on the GAX as well as what they require to list is very limited. Also the findings revealed that SMEs had a difficulty accessing stock market operators as well as stock market information. LDMs showed commitment to the development of the GAX, however their efforts at getting SMEs on board has been passive. SMEs sampled also showed that they are willing to swap from alternative funding sources to the GAX when their concerns are addressed. They also stated that the relevant stakeholders should provide more information and education about the GAX in order to make it a viable option for them.

Suggested Citation

  • Barbara Johnson & Richard Angelous Kotey, 2018. "The Influence of Small and Medium Enterprises (SMEs) Listing on the Ghana Alternative Market (GAX): Prevailing Factors," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(4), pages 142-156, December.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:4:p:142-156
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    1. Ayadi, Rym & Gadi, Salim, 2013. "Access by MSMEs to Finance in the Southern and Eastern Mediterranean: What role for credit guarantee schemes?," CEPS Papers 8061, Centre for European Policy Studies.
    2. Aryeetey, Ernest & Ahene, Ama Asantewah, 2005. "Changing Regulatory Environment for Small-Medium Size Enterprises and Their Performance in Ghana," Centre on Regulation and Competition (CRC) Working papers 30594, University of Manchester, Institute for Development Policy and Management (IDPM).
    3. Shinozaki, Shigehiro, 2014. "Capital Market Financing for SMEs: A Growing Need in Emerging Asia," Working Papers on Regional Economic Integration 121, Asian Development Bank.
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    More about this item

    Keywords

    Alternative Stock Market; Ghana Alternative Market (GAX); Determinants;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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