Analysis of performance of listed companies on USE and Capital Markets in Uganda 2010-2015

Abstract

The objective of the study was to investigate the listed Companies performance on USE and Capital markets in Uganda 2010-2015. The researcher was concerned with how listed Companies performance has had an impact on Capital Markets in Uganda. The literature was reviewed based on research objectives, several roles, listing procedures/process and the empirical issues/studies. Although this project report study used secondary data that was obtained through literature reviews, primary data was also collected using the questionnaire and interview guide. The research methodology was more qualitative in nature and a case study approach was adopted. A sample of 16 listed companies, 28 commercial banks, 26 insurance companies, 46 private businesses, and 75 business individuals were used on the basis of purposive sampling procedure from the above listed institutions. The study findings arrived at, predicts the listing requirements need to be simplified for companies to list. The findings also suggest that periodic review of the requirements and increased public awareness would lead to improved listings. Further research was recommended on the reasons as to why sales turnover fluctuates and companies are reluctant to list on the Uganda Securities Exchange (USE) other than listing requirements and fluctuating sales turnover. The conclusion arrived at from the findings of the study was that Uganda’s Capital markets is accompanied with the challenges like: lack of marketability and information, un awareness of local investors about the listing requirements on USE, too high fees rules at Uganda Stock market exchange (USE), Shareholders’ fund increment from time to time, majority of the population being un skilled on investment expertise of stock market trade.