Trade transparency and internal efficiency of a stock market: a research study of the Nairobi stock exchange.
Date
2013-06
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
The issue of trade transparency has been and is still at the centre of a heated debate among
the stake holders of different security markets. The proponents of increased trade
transparency argue that it improves on the internal efficiency of a market, whereas opponents
of increased transparency argue that it has a detrimental effect on the internal efficiency of a
market. This study empirically examined this topic using transaction data from the Nairobi
stock exchange before and after an increase in trade transparency. The study finds that
Contrary to wide spread beliefs; trade transparency has no effect on the internal efficiency of
a market.
Description
Dissertation submitted in partial fulfilment of the requirements for the Bachelors in Business Administration of Kampala International University
Keywords
Trade, Transparency, Efficiency, Stock market