| Summary: | 碩士 === 國立聯合大學 === 管理碩士學位學程 === 97 === This proposal contributes to the discussion by analyzing where Mongolian stock market stands and where it is headed. Motivation for this thesis is derived from my own interest and academic and practical implications of this work.
In generally, the purpose of this proposal to provide readers correct, clear, arranged information, retrieved from target sources and to give them relative concerns about stock market in Mongolia and in turn to include their responses with respect to the prospects for stock market development in such country, and the implications going forward, for further improvement. More definitely, this work addresses the ways in which to improve market liquidity over time, not to effectively manage the stock market at all.
From the academic perspective, the thesis outlines many discussions, arguments, scholar’s view of points in third section “Literature review”, including extension of trading hours, market transparency, stock market liquidity and market liberalization or internationalization. We examined how these concerns would change market liquidity in Mongolia and assumed it is especially important to estimate liquidity proxies and to analyze their time trend and the relation between daily trading data and our interested measures as well as making simple regression models.
Then we find huge volume of trading infrequency, zero daily return in our sample period as well as the most thin and small market size (from October 2008 to March 2009) as main liquidity constraints, which both of the authorities of three state agencies (MSE, SCHCD, FRC) and other market participants should consider earlier. Market non-transparency during the actual business transaction or insight trading habit in the market also should be discussed, mentioning us there is needed many other steps to make the market more liquid, efficient, to lower transaction cost, to enhance the return, to stable price continuity
Today, just less than 5% of all business entities in Mongolia access financing from the capital market, in other word doing business in this market almost depends on commercial banks, which characterizes very high interest rate. Therefore the achievement to more advanced, healthy financial structure and better opportunity for all businessmen seeking additional financial source describes practical implication of this work.
The proposal is organized as follows. Section 1 introduces Mongolian stock market; section 2 outlines current overview of the market, section 3 reviews relevant literature. After describing the data, section 4 summarizes research methodology to estimate various liquidity proxies based on the concept of liquidity in previous section and also presents the results of some empirical analysis covering time series, correlation and regression respectively. Section 5 contains the market structure in Mongolia substituting for its participants and considering new comers into the market, securities trading commission fee distribution i.e. In addition, SWOT analysis is completed for the more and better understanding or assessment about current state of the market, seeking the alternative, concerning future development. At the end, concluding all sections addresses limitations in this proposal and future work.
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