The Impact of Trading Technology Particularly Automation on Zimbabwe Stock Exchange (Zse) Performance
Author(s)
Lucky Tuzuka Musikavanhu , Mufaro Andrew Matandare , Noel Zhou ,
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Abstract
Automation of the Zimbabwe Securities Exchange was implemented in 2014 with the aim of improving the efficiency of stock market performance as measured by efficiency, turnover and market capitalization. The purpose of this study was to measure the impact of automation on the Zimbabwe stock exchange (ZSE) performance. Annual secondary data from 2012 to 2017 was used to measure the impact of automation on stock market performance. Panel vector autoregressive (PVAR) model was used on twelve firms to analyse the effect of automation on ZSE performance. The results indicated that the performance of the ZSE had been improved by the introduction of automation. The study recommends that ZSE should pursue full market automation as this will improve the performance of the stock market, especially in the long term
Keywords
Trading Technology, Stock Exchange, Zse
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