Abstract
This paper examines the status of stock market concentration and turnover in Nepal Stock Exchange (NEPSE) during the period from Mid-July 2003-04 to Mid-July 2019-20. Despite the NEPSE’s high concentration and low degree of liquidity, the research reveals that stock market concentration and turnover are gradually improving, with the banking sector playing a key role in market concentration. It also finds a negative association between market concentration and stock turnover, meaning that a decrease in stock concentration is accompanied by an increase in turnover (or liquidity) across the study period. This has important policy implications, particularly in terms of reducing the market concentration and improving liquidity. Encouraging family-owned business to go public and attracting international capital flows so as to reduce investment risk and increase confidence of market participants in the capital market of Nepal.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
