The performance of Libyan stock market

Abstract

The objective of this paper is to answer the following question:. To what extent Libyan stock market developed to contribute to economic growth in Libya? This can be evaluated by using many financial indicators, these include stock market size, activity and efficiency, as well as the study including the regulatory framework, and information technology (IT) set in place by the market authorities. However, descriptive and comparative method was used. The results indicated that, despite the modest progress made in a very short time regarding all indicators which the paper calculated, however, it can be said that Libyan stock market remain largely underdeveloped, small and relatively inefficient. Its market capitalization to GDP is very low and investors have no access to long-term capital. In addition, the market still have very low liquidity and investors still have a limited choice of financial instruments and face liquidity problems. In the end of this paper was its conclusion a set of recommendations that can be used in developing a program that aims to speed the development of Libyan stock market and increase its efficiency.

Financial Performance of Non-oil Manufacturing Companies Listed on the Libyan Stock Market (LSM): Mixed Methods Study

“…Stock market is an important tool to support the development of the national economy and diversifying its sources in developed and developing countries, through the promotion of the exchange of goods and services and domestic and international resource mobilization. According to (Al-Jabiri, 2012) the strong stock markets play significant role in supporting national economic development, because they enhance the exchange of goods and services, and the mobilization of resources for both domestic and international market. The literature and economic studies indicate that there is a strong positive relationship between financial markets and national economic growth (Ross, 1997).…”

Factors Affecting Dividend Payment Decisions: The Case of Libya

“…The most important sectors in the Libyan economy, however, such as oil, telecommunications and agriculture are absent. In 2007, the limitations of hand trading restricted LSM trading levels, but in April 2008 the market started using electronic trading with an opening index of 1000 points [ Aljbiri, 2012].From that time the number of firms listed on the main table increased gradually to reach ten firms and a sub-table of fifteen by the beginning of 2009.During that year the number of firms rose to 25 on the main table, with 41 firms in 2010 in two tables [ Edweib et al, 2012].…”