Economic Corns of Demutualization of Exchanges: Predicting Robust Financial Drivers of Demutualization Using Probit Extreme Bounds Analysis

Abdul Wahid, Muhammad Zubair Mumtaz

Abstract


The aim of this study is to examine the economic corns of demutualization and gauge the stability and soundness of demutualized indexes and predict financial drivers of demutualization using Probit Extreme Bounds Analysis. The sample of the study includes 29 exchanges of the World. We find that demutualized exchanges are more attractive in case of hot and stable state markets than full-fledged local mutual exchanges. Conversely, market capitalization is categorized as a robust financial driver influencing exchanges propensity to demutualize. In addition, this study finds that demutualization of exchanges leads towards international alliances, market integration, unfold flourishing and growth avenues which enhance potential synergies between stock market related activities and therefore lead to stock market growth.


Keywords


Demutualization; Financial drivers; Economic Corns; Probit Extreme Bounds Analysis

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References


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DOI: http://dx.doi.org/10.22555/pbr.v20i1.1168

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This work is licensed under a Creative Commons Attribution 4.0 International License.