Analysis of factors that make companies reluctant to list in the DSE: case of selected companies

The aim of this study was to explore factors that make companies reluctant to list in the Dar es Salaam Stock Exchange (DSE). Specifically the study aimed at exploring if the current financial laws and regulations of CMSA governing the stock exchange, listing requirements, disclosure requirement, and the present fiscal incentives were the ones that make companies reluctant to list in the DSE. Self administered survey questionnaire and in-depth interviews were used as the main primary data collection instruments. The findings showed that lack of awareness on the rules and regulations governing stock market, procedures and other benefits obtained by listing. Also there was fear of disclosing their information due to the existing competition among the companies. Also the findings showed that the insufficient of the existing fiscal incentives and too many listing requirements were the one that made companies reluctant to list. Therefore this study recommends that in order for companies to list in the DSE which will leads to the widening, deepening the market then the current challenges facing the stock market like transparency on the financial rules and regulations governing stock market need to be addressed. Education on fiscal incentives, listing requirements, and disclosure requirements really need to be made. Also education on benefits derived from listing and intensive advertisement campaigns should be made.