posted on 2022-10-10, 13:08authored byMohamed Hesham El Azza
Since the business climate of stock exchanges is
facing many challenges due to many turbulent changes, traditional stock
exchanges are no longer able to keep up with these changes as they lack the
required financial flexibility to do so. As a result, many have changed their
ownership and governance structure by adopting the strategy of "demutualization". This study examined the
impact of demutualization on its financial performance and internal governance
mechanisms. Also, the study examined the impact of the changes in internal
governance mechanisms on the exchange’s financial performance. Consequently,
several empirical models were constructed and nine hypotheses were developed
and tested by applying multivariate regression analysis by utilizing unbalanced
panel dataset of the stock exchanges that are members of World Federation of
Exchanges during the period of 1995-2012.