Analysis of Factors Affecting Stock Market Development In Tanzania: The Case of Dar es Salaam Stock Exchange

Alliy, Anwar Aklan (2015) Analysis of Factors Affecting Stock Market Development In Tanzania: The Case of Dar es Salaam Stock Exchange. Masters thesis, The Open University Of Tanzania.

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Abstract

This study was designed to provide analysis of factors affecting stock market development in Tanzania: The case of Dar es Salaam Stock Exchange. Specifically the study assessed economic, socio –cultural, legal, and other factors that affect the development of Dar es Salaam Stock Exchange market.The study employed quantitative approach. The data were collected through questionnaires. 112 business owners in Dar es Salaam were involved in the study. Data were analyzed using SPSS through descriptive statistics and correlation analysis.The findings revealed that there are strong positive correlation between DSE development and economic factors,socio cultural factors, rules and regulations issues and other factors such as education and government support. The findings also revealed that economic factors affecting DSE are interest rate, profitability, low cost of executing trade, possibility of getting dividend, technological advancement and household savings. Furthermore sociocultural factors affecting DSE are investors’ behaviours and presence of reference group and perception of DSE market attractiveness. In addition, laws and regulations factors affecting DSE are cumbersome of these rules and regulation. Moreover findings indicate that local investors do not have enough education on DSE operations. The study recommends policy makers to take stern measures to regulate the business environment such that economic factors, socio-cultural factors, and legal framework of the country supports the investors participation in the Dar es Stock Exchange operations, this will help the market development.

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