The Role Of Ethiopian Security Exchange Laws To Enhance Company Financing: Challenges And Opportunities

Abstract

The purpose of the study was to assess the role of Ethiopian security exchange laws in enhancing company financing and identify the challenges and opportunities facing financial institutions. It was intended to fill the existing knowledge gap as earlier studies were not particularly conducted to address the issues of Ethiopian security exchange laws. Books, prior research, journals, articles, published and unpublished materials, etc. were employed as secondary data sources. Thus, the qualitative data were analyzed in contextual meaning, presented in narration form for results and findings, and put forward as recommendations. Therefore, the study indicated that there are also possible opportunities, such as the automation of the securities market, which is, however, a matter of access to technology. Ethiopia needs to work on it. Generally the study manly used primary date which is capital market laws. The experience with some of the newly created securities markets suggests that Ethiopia can start with automated trading if it cooperates with the advanced security exchanges. It can be recommended that the legal and institutional frameworks be assessed as to what gaps remain with respect to the corporate markets. The regulatory framework for onboarding individuals and small businesses into financial institutions needs streamlining, and introducing a risk-based regulation is needed to achieve better financial inclusion. The findings from this study have important implications for prospective academicians and policymakers dealing with such issues, increasing the conclusiveness and inclusiveness of the findings and results of this study in the future