Steil  added an interesting dimension to the discussion as he argued that the change in governance structure of an exchange is not important as demutualized exchanges can still provide the same services and accrue the same benefits as in mutual exchanges.
Kongden (1998) also found that mutual exchanges are able to maximize the interests of both parties concerned as opposed to demutualized entities.
Hart and Moore  argued that outside ownership and member co-operatives are both inefficient forms of governance structures as outside ownership is mostly interested in short time gains while collective decision making in cooperatives make stock exchanges inefficient.
Lee  states that demutualization is neither necessary nor sufficient for the prosperity of stock exchanges.  saw demutualization as a necessary condition to change current shareholders and management.
Mensah (2005) argued that the slow pace of demutualization in emerging markets such as Africa may be due to the fact that African governments are reluctant to undertake the process as long as they are satisfied with the performance of their mutual exchanges in terms of meeting their national objectives.
The Zimbabwe Stock Exchange is one of the oldest stock exchanges in Africa, having been formed in 1896 .
Of particular importance is the impact of demutualization on the stock exchange itself (as an organization) as it eventually extends the impact on other stakeholders (investors, employees, government, etc).
While Aggarwal  Mendiola and O’Hara , Aggarwal and Dhahiya  found positive effects of demutualization on stock exchange performance.
The rest of the paper is organized as follows: Section 2 provides an extensive review of the literature on demutualization; Section 3 outlines the methodology of the study; Section 4 presents the findings; and Section 5 concludes the study.
While the general trend globally has been that automation precedes demutualization, Zimbabwe has plans to automate and demutualize its stock exchange around the same time.
Given the clearly negative effect of automation on listings and volumes of trades, questions are raised regarding the efficacy of the model that Zimbabwe has adopted to boost domestic and foreign investor participation on its bourse.
The study contributes immensely to the mounting evidence on demutualization, and the contemporary debate on the merits of demutualizing and automating the Zimbabwe Stock Exchange.
Demutualization; Stock exchange The first stock exchange to demutualize was the Stockholm Stock Exchange in 1993, and since then, a number of stock exchanges around the world have been demutualizing.