THE IMPACT OF THE SECOND TIER SECURITIES MARKET ON SMALL SCALE INDIGENOUS INDUSTRIES IN NIGERIA
ABSTRACT
This project work is centred on the impact of the Second-Tier Securities Market on small-scale indigenous industries in Nigeria.
The study was conducted to identify the extent to which indigenous businesses in Nigeria are using the Second-Tier Securities Market of the Stock Exchange as a source of long-term finance for their investment.
Four research questions and three hypotheses guided the study. The population for the study consisted of all the population selected from small-scale enterprises and approved stockbrokers including those that successfully floated indigenous business in the Second-Tier Market. A sample of five (5) small-scale enterprises in Lagos was drawn through random sampling technique. A structured questionnaire containing 18 items was used for the data collection. A point scale in the questionnaire and percentage were the statistical tools used for the data analysed. The three hypotheses were tested at 0.05 level of probability.
The findings of the study revealed among others that: the response on the second-tier securities market is very low due to the general level of awareness on the economy even among the literate population. Even with the small number of educated population who invested in the stock market, the demand for shares often exceed supply because of the small proportion available for trading.
Based on the findings of the study, a number of recommendation were made among which is that a formal market for unlisted securities should be developed so that companies which do not wish to be quoted on the Stock Exchange could approach this formal market.
CHAPTER ONE
Introduction
1.1 Background Of The Study
The small scale industrial undertaking has been widely acclaimed as the bedrock for any meaningful industrialization programme of any nation especially in less developed countries. It is in realization of this that government all over the world has devoted much of the sources and effort towards the development of such industries. In Nigeria for instance, the government started its deliberate efforts to develop this sector since the early 70s through policies contained in the National Development plans. Furthermore, financial institutions particularly the development, commercial and merchant banks have been made to extend to a certain percentage
Despite all those efforts, the growth of small scale industries has been greatly hindered mostly by lean financial resource of their promoters. Most of the business concerns do not have access to the capital market from where long term finance suitable for sustenance of business expansion could not meet the requirement that would afford them the opportunity of raising funds through the capital market.
Nigeria entrepreneurs have been apathetic to seeking public quotation by getting listed on the Nigerian stock exchange. As at 1982, only three wholly owned Nigerian companies were listed on the Nigerian stock Exchange market though the Nigerian stock exchange had been in existence since 15th September 1960. a significant move towards public quotation among Nigerian companies was achieved during the indigenization exercise of 1972.
The programme compelled hitherto foreign dominated business enterprises to all carrying consequently the number of listed companies as at the end of may 1985 moved up to 44 but it is prompted a seminar on public quotation for indigenous companies organized by the GLAXOSMIHKLINE NIGERIA PLC in Lagos 1n 1981.
- High cost of seeking quotations
- Fear of losing control of the business upon obtaining quotation
- Personal convictions (Egocentric reason)
- Reluatative disclose occurrence financial information little or no knowledge of the capital market
In effect the resolutions formed the bedrock of the introduction of the second tier security market (SSM) which was launched on 30th April, 1985. In Nigeria, the SSM is per after then the unlisted company Market (UCM) in the unit kingdom its primary aim is to provide a platform for small scale businesses quotation. The main impetus for the establishment of the second tier security business is to seek quotation on this market.
1.2 Statement Of Problem
A company has many financial consideration to make but the main one fall into three broad categories. The first deals with the determination of a company’s total financed needs, the second relates to the acquisition of the optimal mix of such financial needs from different institutions while the third is primarily concerned with the appropriate management of the monetary instrument including cash that the company has of important to the study is the second aspect which deals with the acquisition of a company’s predetermined financial needs.
A firm’s capital structure is mad up of its equity, debt and retained earnings. The attempt to strike an optimal composition in these components poses some problems, which relates to the desirability of each source, the true cost of alternative funds and the differential treatment given to firms with respect to accessibility to funds. It is strongly held that small firms are discriminated against the market for funds and this only implies that there are imperfections associated with the size of firms requesting funds from different sources.
1.3 Purpose Of The Study
Although this study is an academic exercise in fulfillment of academic qualification but will at the end of the day study the extent to which indigenous businesses in Nigeria are using the second tier security market (SSM) of the stock exchange as a source of long term finance for their investment . The SSM is a new development on the Nigerian stock Exchange (revolved in April, 1984) to cater for the need of indigenous firms which are mostly small in nature. Until the evolution of the SSM, the stock exchange market was inaccessible to the small enterprises as the requirements for listing were two stringent as the requirements for listing were two strigent the costly for them. Since its inception in 1985, only thirty small and medium enterprises have so far qualified and is listed on the SSM despite the relaxation of requirements for entry as observed from the first phase of the project.
The appraisal given to the thirty companies on the SSM was based on the growth prospects of the companies and their significance to the national economy. In comparing the listed Companies securities, it was observed that instead of the five year trading record required of the listed companies, the SSM companies are required to provide a trading record of three years. This makes entry into SSM easier for them because most of them are young and not have sophisticated trading records over a long period.
It is also stipulated that not less than 25 percent of the issued share capital of the listed companies has been made available to the public but in the case of SSM companies, at least 10 percent of its shareholders capital must be made available to the public while the number of shareholders in the former group must not be less than 500 and the number in the latter group is limited to 100.
Therefore, the purpose of this study is to:
- Study the extent to which indigenous businesses in Nigeria or Lagos are using the second tier security markets (as of the Stock Exchange as a source of Long term finance for their investments.
- Study the objectives of the second – tier security market with a view to assessing how far they are being met;
- Carry out an inventory of all the firms that have so far been listed and analyze their status;
- Identify the reason for the low response of indigenous companies in getting listed on the SSM observed on earlier study;
- Determine how the requirements for the listing are perceived by the indigenous businessmen n the light of development stage of the economy;
- Determine the contribution of the SSM to economic development of Nigeria;
- And to suggest solutions to the problem identified from the study.
1.4 Significance Of The Study
This study is important for the fact that it will provide explanations for the operation of the stock market in Nigerian and would offer suggestions on how best to exploit the market for maximum benefits. The significance of the study further includes:
- The study will identify the current level of the efficiency attained by the stock market, glaxosmithkline Nigeria PLC.
- The study will identify the current level of the efficiency attained by the stock market, glaxosmithkline Nigeria PLC.
- The study is expected to put forward ideas that will make the flow of information about the market efficient and effective
- This study will also ascertain the cost of listing with the market and if necessary effects a change on the current position.
- The study will also identify improving the professional status of the operators of the company.
1.5 Scope Of The Study
The scope of the study is limited to Lagos i.e al the branches of Glaxosmithkline Nigeria Plc in Lagos state
1.6 Definition Of Terms
Small Scale Industry
In the 1989 industrial policy of Nigeria small scale industries were defined as those with investment of between N100,00 and N2million exclusive of land but including working capital . industries with investment cost exceeding N100,000 including working capital but excludes land as regarded as micro or cottage industries.
Capital Market
A Capital market is a mechanism which long term funds with maturity of more than one year are sourced instruments traded in the capital market include equities, debentures, stocks, gil – edged securities, state and municipal bonds and financial derivatives such as options, futures and warrants – Ekinen (1993 – 1999)
Money Market
Money market is a mechanism through which short – term funds with maturity of less than one year are, sourced.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
The Impact of the Second Tier Securities Market on Small Scale Indigenous Industries in Nigeria can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "The Impact of the Second Tier Securities Market on Small Scale Indigenous Industries in Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "The Impact of the Second Tier Securities Market on Small Scale Indigenous Industries in Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can the material for “The Effect of Small Scale Industries on Social Economics Development” be used as a guide for Social Development Project?
Yes it can be used — The study investigates the impact of small scale industries on the Nigerian economy, spanning from 1986 to 2010. The study adoptedOrdinary Least Square (OLS) Linear Specification model. Using unit root test, the work shows that small scale industries significantly contributed to the economic growth in Nigeria despite poor funding by commercial banks. The work recommends among others that government should improve its monetary policies so as to reduce to an acceptable level, the rate of interests charged by commercial banks as well as encouraging rural based industrialization, whereby investors are encouraged to establish small and medium scale industries that would be based entirely on local raw materials, machines and equipments. …
Can the material for “Design and Implementation of Computerized Population Analysis System” be used as a guide for Computer Science (CS) Project?
Yes it can be used — Computerized Population Analysis System includes the sets of methods that allow us to measure the dimensions and dynamics of populations. These methods have primarily been developed to study human populations, but are extended to a variety of areas where researchers want to know how populations of social actors can change across time through processes of birth, death, and migration. The purpose of this study is to eliminate errors involved in demographic data/information. This is actualized by designing Computer Based analysis system for National Population Commission which is user friendly and interactive. By the time this software is designed and implemented, the difficulties encountered with manual method of keeping demographic information will be eliminated. The motivation came after the last census exercise …
Can the material for “Nigeria Bank and Issue of Distress” be used as a guide for Banking and Finance (BF) Project?
Yes it can be used — The major objective of this research was to probe into the issue of distress in Nigeria bank The increasing rate of bank distress recently in Nigeria triggered the need for and inspired us to embark on this project research. In carry out the research, the researcher intend to find out the problems that lead to financial distress in Nigerian Banks and the possible solution to that effect. Related literatures were reviewed to find out the opinion of others in the topic and related topics in the bank industry. Data collected was tested and analyzed. Statistical techniques were used and findings on this hypothesis were made in chapter five. Also recommendations were made on the literature reviewed. Finally, conclusions were drawn on the topic studies. …
Can the material for “A Lexico-Semantic Study of the Language of Advertisement in Pidgin English” be used as a guide for English Language Project?
Yes it can be used — This work concern on how the meaning of the words/lexis can be utilized in the language of advertisement in Pidgin English. The aim of study is to examine the lexico-semantics study of the language of advertisement in Nigerian Pidgin English. In achieving this aim, the following objectives were set out to determine the features of Nigerian Pidgin English in the advertisements by Fresh FM in Ado-Ekiti, determine the possible effects of lexical variation Nigerian pidgin, and determine how lexico-semantic variation in pidgin affects international intelligibility and acceptability of the language of advertisement in Nigerian pidgin. Nigeria English which is being patterned to express the unaccustomed concepts in the Nigerian environment, therefore, borrows from the pidgin and Nigerian English share elements …
Can the material for “A Review of Motivation as a Management Tool for Increasing the Productivity of Employees” be used as a guide for Business Administration and Management (BAM) Project?
Yes it can be used — This research examines “the review of motivation as a management tool for increasing the productivity of employees, a case study of Emenite Limited, Emene, Enugu State. The researcher adopted descriptive survey design. The population of the study is 224 while the sample size is 144. The researcher used both primary and secondary sources of data. In view of this, four research questions were formulated to generate expected answers. Literal works were reviewed for proper understanding and guidance. Questionnaires, personal interview and observation were used for collection of primary data. Secondary sources of data were collected from textbooks, periodicals, articles and journals. Tables and simple percentage were used for data presentation and analysis. Based on the findings, the researcher found out …
Can this topic “Aesthetic of Africanism in Camara Laye’s the African Child and the Radiance of the King” be used for English Language Project?
Yes it can be utilized for research — It was obviously vital that African should be treated for culture preservation. This research attempted the exposition of Camara Laye’s The African Child and The Radiance of the King with a view to appreciate the African Aesthetics in the novels. Formalism approach is used to critically study the aesthetics in the selected African novels and we made wide consultation of books on African aesthetics. We observed that with all rapidly changing conditions of life today, African aesthetic such as circumcision, rituals and rites, sacrifices are in a very grave danger of getting lost forever, unless something is done to redeem this situation. Aesthetics of any society should not be taken with levity. …
Can the material for “Effects of Excursion in the Teaching of Geography in Some Selected Secondary Schools” be used as a guide for Geography Education Project?
Yes it can be used — Excursion strategy is a method of teaching which helps to bring about an effective leaning of geography. The study was carried out to investigate the Effects of Excursion in the Teaching of Geography in Some Selected Secondary Schools. In achieving this aim, the following specific objectives were laid out to determine the relationship between excursion and academic performance of geography students and determine the influence of gender on academic achievement of students taught Geography using Excursion Strategy. Investigation revealed that most teachers still rely on the lecture method while neglecting the use of Excursions in their instructional deliveries. Students offering Geography therefore graduate from secondary schools with theoretically based knowledge without being exposed to practical knowledge of geography. The research …
Can this topic “Pattern of Violence Attack and Occupation Hazard of Journalism in Lagos Nigeria” be used for Mass Communication (MC) Project?
Yes it can be utilized for research — Journalism is defined as Newsgathering, fact finding and reporting of things the way it appears at the moment of reporting, not a definitive study of a situation. The study scrutinizes the Pattern of Violence Attack and Occupation Hazard of Journalism in Lagos Nigeria between January to July 2021. In achieving this aim, the following specific objectives were laid out to examine the hazards of journalism profession in Nigeria, determine if occupational hazards of journalism have effects on the performance of journalists in Nigeria and investigate how Journalist in Nigeria can avoid hazard in Journalism. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 250 …
Can the material for “The Influence of Audio Visual Teaching Materials on Learning in Pre-Primary Schools” be used as a guide for Education Project?
Yes it can be used — This study investigated the influence of audio visual teaching materials on learning in some pre-primary schools in Odeda Local Government Area of Ogun State. It is a descriptive study in which the survey research design was adopted. The sample consisted of 60 teachers from 10 pre-primary schools randomly selected from Odeda Local Government in Ogun State. A questionnaire was used for data collection. The study identified that there is a great influence of audio visual teaching materials on learning in pre-primary school pupils which has affected positively the use of audio visual in teaching in the selected schools. It is therefore recommended that audio visual materials should be used for teaching in the pre-primary schools. …
Can this topic “E-commerce Online Shopping for Hairs Only (Human Hairs)” be used for Computer Science (CS) Project?
Yes it can be utilized for research — The electronic commerce environment has been widespread developed, which provides consumers with a convenient platform to search for information interact with retailers and purchase products online. The aim of the study is to design and implement an E-commerce Online Shopping for Hairs Only (Human Hairs). In achieving this aim, the following specific objectives were laid out to design software that will be used to purchase human hairs online by the interested personnel, update new human hairs products and other related items online, used to make series of human hairs shopping online by the several personnel and make purchases for desired item and To develop an automated system for Hairs Only (Human Hairs) online shopping. The motivation that led to the …