Emerging Equity Markets and Economic Development

Emerging Equity Markets and Economic Development

We provide an analysis of real economic growth prospects in emerging markets after ̄nancial liberalizations. We identify the ̄nancial liberalization dates and examine the in°uence of liberalizations while controlling for a number of other macroeconomic and ̄nancial variables. Our work also introduces an econometric methodology that allows us to use extensive time-series as well as cross-sectional...

Equity Markets and Economic Development: What Do We Know

The objective of this paper is to review the transmission mechanisms uniting equity market development and economic growth in developing countries. We find that the theoretical impact of equity markets is ambiguous. At the domestic level, the allocation function of equity markets appears conditioned by the extent of informational efficiency. Turning to international linkages, theoretical models...

Foreign Speculators and Emerging Equity Markets

We propose a cross-sectional time-series model to assess the impact of market liberalizations in emerging equity markets on the cost of capital, volatility, beta, and correlation with world market returns. Liberalizations are defined by regulatory changes, the introduction of depositary receipts and country funds, and structural breaks in equity capital flows to the emerging markets. We control...

The Role of ADRs in the Development and Integration of Emerging Equity Markets

This study measures the dynamics of the growth and expansion of international crosslistings through American Depositary Receipts (ADRs) in emerging equity markets around the world and evaluates its impact on their development and integration with world markets. Overall, I find that the increasing number of new ADR programs, their market capitalization and trading volume in those countries are p...

Capital structure and a difference of opinion: stock markets, minority equity and economic development