Measuring the impact of being listed on the Namibian stock exchange on stakeholder value creation
| dc.contributor.author | Claassen, Angus | |
| dc.date.accessioned | 2016-05-08T14:41:50Z | |
| dc.date.available | 2016-05-08T14:41:50Z | |
| dc.date.issued | 2016 | |
| dc.description | A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration | en_US |
| dc.description.abstract | This study measured the impact of being listed on the Namibian Stock Exchange on stakeholder value creation. The study was prompted by the concerns raised by the Minister of Finance in the Namibia Financial Sector Strategy: 2011-2021, where she referred to the low levels of liquidity on the NSX. The study is aimed at establishing whether being listed on the NSX creates value for stakeholders. A study was conducted with eight Namibian listed companies. Financial ratios and the share price performance of eight Namibian listed companies from 2009-2014 were used to measure the impact of being listed on the NSX and stakeholder value. Structured questionnaires and unstructured in-depth interviews were used to measure the non-financial issues such as stakeholder relations and governance. The main reasons why companies decided to list on the NSX was to be a Namibian company, owned and managed by Namibians. These companies believed that creating value for ordinary Namibians will ultimately create economic value for their companies and the economy. Listed companies experienced challenges due to lack of liquidity, lack of instruments, need for capital and the unwillingness to share ownership were the biggest reasons why companies remained unlisted. These companies simply did not see the benefit of being listed on the NSX. There was a significant relationship between the internal performance of the listed companies and to the external judgement of the marketplace in terms of value. This means that with each year of improved financial performance shareholders receive return on investments through dividends and growth in share prices and the Government of Namibia receives increased taxes, employees earn higher salaries, bonuses and incentives. A regression analysis showed that there is a statistically significant positive relationship between the share price and book value. However, further analysis showed that there was a general divergence between the share price and the book value per share with the latter increasing at a slower pace. This shows that the shareholder value improved due to listing on the stock exchange. Recommendations to improve stakeholder value on the Namibian stock Exchange include establishing an Issuer and Investor department that can advertise in selected publications in order to profile the exchange. Demutualisation in order to enhance efficiency and competitiveness in order to make the NSX the preferred platform for capital raising, in Namibia and elsewhere. Privatising State Owned Enterprises since listing these enterprises will increase public awareness about the NSX and also create first time local Namibian buyers. If stakeholders are educated about the NSS it will create a culture of participation on the stock exchange in order it address the lack of capitalisation and illiquidity. | en_US |
| dc.identifier.uri | http://hdl.handle.net/11070/1651 | |
| dc.language.iso | en | en_US |
| dc.publisher | University of Namibia | en_US |
| dc.subject | Namibian stock exchange | en_US |
| dc.subject | Value creation | en_US |
| dc.subject.lcsh | Stock exchanges, Namibia | |
| dc.subject.lcsh | Economic development, Namibia | |
| dc.title | Measuring the impact of being listed on the Namibian stock exchange on stakeholder value creation | en_US |
| dc.type | Thesis | en_US |