The Role of Securities Regulators in Efficient Supervision and Regulations of the Securities Market in Cambodia

By H.E. Dr. KAO Thach.

Abstract: This dissertation is about the role of regulators in the efficient supervision and regulations in the development and the growth of securities market in Cambodia. It adopted a mixed methodological approach to examining the role that regulators have played in the Cambodia’s securities market. To ensure the consistency and reliability of the collected data set, diagnostic check was carried out. Cronbach’s alpha values for all variables are very high, far exceeding the wildly used 0.7 cut-off. These constructs and attributes are therefore deemed to have high reliability. To empirically investigate the effects of the role of regulators on the growth of securities market in Cambodia, multiple regression analysis is performed to show vigorously how each factor, especially role of regulators which is the variable of interest in this dissertation, affects the securities market growth in Cambodia. Important diagnostic tests were carried out to avoid reporting spurious results. Based on the estimation results, three of the eight factors, namely prospects for stock market, role of regulators, and regulations related to issuing securities, are found to be statistically significant. Interestingly, the role of regulators is significant at less than 5% level, providing strong evidence that it influences the growth of securities market in Cambodia. Similarly, ‘prospects for securities market’ is found to be the largest contributor to the growth of securities market in Cambodia. However, ‘regulations related to issuing securities is negatively related to securities market growth. The findings in the dissertation provide some public policy implications that are of vital relevance for developing and emerging economies.

Keywords: Role of Regulators; Supervision and Regulation; Securities Market Growth; Cambodia

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