Singh, Ajit (2003): Corporate governance, corporate finance and stock markets in emerging countries. Published in: Journal of Corporate Law Studies , Vol. 3, No. 1 (April 2003): pp. 41-72.
Download (219kB) | Preview
This paper focuses on the inter-relationship between corporate governance, financing of corporate growth and stock market development in emerging countries. It explores both theoretically and empirically the nature of the inter-relationships between these phenomena, as well their implications for economic policy. It concentrates on how corporate growth is financed, an area where the literature has identified important anomalies in relation to corporate behaviour and governance. The paper provides new information and analysis on this subject for the 1990s which it is shown leads to further anomalies from the perspective of extant economic theory. It also comments briefly on the recent research on the legal system, corporate laws, corporate governance and corporate performance. In considering the latter issues the paper examines more closely the evolution of the financing of corporate growth and of stock market development in the specific case of the Indian economy in the 1980s and 1990s.
|Item Type:||MPRA Paper|
|Original Title:||Corporate governance, corporate finance and stock markets in emerging countries|
|English Title:||Corporate Governance, Corporate Finance and Stock Markets in Emerging Countries|
|Keywords:||Corporate governance; corporate finance; stock markets in emerging countries|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
G - Financial Economics > G3 - Corporate Finance and Governance
A - General Economics and Teaching > A1 - General Economics > A10 - General
|Depositing User:||Ajit Singh|
|Date Deposited:||30. Aug 2010 08:31|
|Last Modified:||30. Dec 2015 08:53|
Aylward, A. and J. Glen (2002). "Primary Securities Markets: Cross Country Findings", International Finance Corporation Discussion Paper No. 39. Washington, D.C.: The World Bank.
Balasubramanian, N. (1993). Corporate Financial Policies and Shareholder Returns: the Indian Experience. New Delhi: Himalaya Publishing House.
Berle, A. and G. Means (1933). The Modern Corporation and Private Capital. New York: Macmillan.
Bhide, A. (1994). "The hidden cost of stock market liquidity". Journal of Financial Economics, 34, pp. 31-51.
Brealey, Richard A. and Steward C. Myers (eds.) (1999), Principles of Corporate Finance,6th edition McGraw-Hill, U.S.A.
Camdessus, M. (1998). Speech to Transparency International reported in the IMF Survey, 9 February, 1999.
Chang, H.-J. (2000). "The hazard of moral hazard - untangling the Asian Crisis", World Development, Vol. 28, No. 4.
Cobham, David and Ramesh Subramaniam (1998), "Corporate Finance in Developing Countries: New Evidence for India", World Development.
El-Erian, M. A. and Kumar, M. S. (1994) Emerging Equity Markets in Middle Eastern Countries. In World Bank Conference on Stock Markets, Corporate Finance and Economic Growth, The World Bank, Washington, DC, February 16-17.
Frankel, J. A. (1998). "The Asian Model, the Miracle, the Crisis and the Fund". Paper delivered at the U.S. International Trade Commission, April 16, 1998.
Glen, J., K. Lee and Singh, A. (2000), Competition, Corporate Governance and Financing of Corporate Growth in Emerging Markets, Cambridge Discussion Paper in Accounting and Finance No. AF46, Department of Applied Economics, University of Cambridge.
Graham, Benjamin and David Dodd (1934). Securities Analysis. New York: McGraw-Hill.
Greenspan, A. (1998). Testimony before the Committee on Banking and Financial Services, U.S. House of Representatives, January 30, 1998.
Gugler, K., D. Mueller and B. B. Yurtoglu (2002). "The Impact of Corporate Governance on Investment Returns in Developed and Developing Countries", University of Vienna manuscript.
Hall, R. E. (2001) Struggling to Understand the Stock Market. The American Economic Review, Papers and Proceedings.
Hughes, A. (1991). "Mergers and Economic Performance in the U.K.: A Survey of the Empirical Evidence 1950-1990", in J. Fairburn and J. A. Kay (eds.), Mergers and Merger Policy. Oxford, second edition.
Harris, M. and A. Raviv (1991). The Theory of Capital Structure. Journal of Finance . March, 46(1), 297-355.
IMF (1997). World Economic Outlook: Interim Assessment. Washington, D.C.: IMF.
IMF (1998). World Economic Outlook and International Markets. Washington, D.C.: IMF.India Today. June 16, 1997.
Johnson, S., P. Boone, A. Breach and E. Friedman (2000). "Corporate Governance in the Asian Financial Crisis", Journal of Financial Economics, Vol.58, pp.141-86.
Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. New York: Harcourt, Brace and Company.
La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R. W. Vishny, (1997). "Legal Determinants of External Finance", Journal of Finance, 54, 471-517.
La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R. W. Vishny (1998). “Law and Finance”, Journal of Political Economy, 106, 1113-55.
La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R. W. Vishny (1999). "Investor Protection: Origins, Consequences, Reform", Harvard University, manuscript.
La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R. W. Vishny (2000). "Agency Problems and Dividend Policies Around the World", Journal of Finance
Mayya, M. R. (1995). Reflections on the Changing Scenario of the Indian Stock Markets. Bombay: A. D. Schroff Memorial Trust.
Modigliani, F. and M. H. Miller (1958). "The Cost of Capital, Corporate Finance and the Theory of Investment". American Economic Review. June 48 (4), 261-297.
Mullins, J. (1993) Emerging Equity Markets in the Global Economy. FRBNY Quarterly Review (Summer) 54-83.
Myers, S. C. (2001) Capital Structure. The Journal of Economic Perspectives. 15 (2), 81-102.
Myers, S. and N. Majluf, (1984) “Corporate Financing and Investment Decisions When Firms Have Information that Investors Do Not Have”, Journal of Financial Economics, 13, 187-221.
Pal, P. (2001). "Stock Market Development and its Impact on the Financing Pattern of the Indian Corporate Sector", NSE Research Initiative, Working Paper No. 004. Mumbai, India.
Peacock, A. and G. Bannock (1991). Corporate take-overs and the public interest. Aberdeen: Aberdeen University Press for the David Hume Institute.
Phelps, E. S. (1999). "The Global Crisis of Corporatism", The Wall Street Journal, 25 March, 1999.
Porter, Michael E. (1992). "Capital disadvantage: America's falling capital investment system". Harvard Business Review, September-October, pp. 65-82.
Prais, S. J. (1976) The Evolution of giant Firms in Britain. Cambridge University Press, Cambridge.
Reserve Bank of India (1995). Report on Currency and Finance 1994-1995. Bombay: RBI.
Sakakibara, E. (2001). "The East Asian Crisis - Two Years Later". Annual World Bank Conference on Development Economics 2000, pp.243-55. The International Bank Reconstruction and Development/The World Bank.
Samuel, Cherian (1996), The Stock Market as a Source of Finance: A Comparison of U.S. and Indian Firms. World Bank Policy Research Working Paper 1592.
Shiller, R. J. (2000) Irrational Exuberance. Princeton University Press, Princeton, New Jersey.
Shleifer, A. and L. Summers (1988). "Breach of trust in hostile take-overs", in Alan Auerbach (ed.) Corporate take-overs: Causes and consequences. Chicago: University of Chicago.
Shleifer, A. and R. Vishny. (1997) A Survey of Corporate Governance. Journal of Finance, 52, 737-783.
Singh, A. (1971). Take-overs, Their Relevance to the Stock Market and the Theory of the Firm. Cambridge: Cambridge University Press.
Singh, A. (1975). "Take-overs, Economic Natural Selection and the Theory of the Firm". Economic Journal, September.
Singh, A. (1992). "Corporate Take-overs", in J. Eatwell, M. Milgate and P. Newman (Eds.), The New Palgrave Dictionary of Money and Finance. London: Macmillan, pp. 480-6.
Singh, A. (1995) Corporate Financial Patterns in Industrializing Economies: A Comparative International Study. IFC Technical Paper 2. Washington, DC: IFC.
Singh, A. (1997) Financial Liberalisation, Stock Markets and Economic Development”, Economic Journal, 107, 771-782.
Singh, A. (1998a). "Liberalisation, the stock market and the market for corporate control: a bridge too far for the Indian economy?" in I. J. Ahluwalia and I. M. D. Little (Eds.) India's Economic Reforms and Development: Essays for Manmohan Singh. Oxford.
Singh, A. (1998b). "Financial crisis in East Asia: The end of the Asian model?". Issues in Development, Discussion Paper 24. Geneva: ILO.
Singh, A. (1999). "Should Africa promote stock market capitalism?", Journal of International Development. 11: 343-365.
Singh, A. (2000). "The Anglo-Saxon market for corporate control: The financial system and international competitiveness", in Candice Howes and Ajit Singh (Eds.) Competitiveness Matters: Industry and economic performance in the U.S.. Ann Arbour: University of Michigan Press.
Singh, A., and J. Hamid. (1992). Corporate Financial Structures in Developing Countries. Technical Paper 1, IFC, Washington DC.
Singh, A., and B. Weisse (1998). “Emerging Stock Markets, Portfolio Capital Flows and Long-Term Economic Growth: Micro and Macro Perspectives.” World Development, 26 (4), 607-622.
Singh, A., and B. Weisse (1999). "The Asian Model: A crisis foretold?", International Social Science Journal, No. 160, pp.203-215.
Singh, A., A. Singh and B. Weisse (2000). Information Technology, Venture Capital and the Stock Market, Cambridge Discussion Paper in Accounting and Finance No. AF47, Department of Applied Economics, University of Cambridge.
Singh, A., A. Singh and B. Weisse (2002). Corporate Governance, Competition, the New International Financial Architecture and Large Corporations in Emerging Markets, forthcoming as a Cambridge Discussion Paper, Centre for Business Research, University of Cambridge.
Stein, J. C. (1989). "Efficient stock markets, inefficient firms: A model of myopic corporate behaviour". Quarterly Journal of Economics, November.
Stiglitz, J. (1999). "Reforming the Global Financial Architecture: Lessons form Recent Crises", Journal of Finance, 54(5): 1508-22.
Summers, L. H. (2000). "International Financial Crises: Causes, Prevention and Cures", American Economics Review Papers and Proceedings, 90(2), pp. 1-16.
Tirole, J. (1991) Privatisation in Eastern Europe: Incentives and the Economics of transition. In NBER Macroeconomics Manual 1991, ed. Blanchard, O.J. and S.S. Fischer. The MIT Press, Cambridge, MA.
Tobin, J. (1984). "On the efficiency of the financial system". Lloyds Bank Review, 1-15 July.
U.S. Council for Economic Advisers (1998). Economic Report of the President. Washington, D.C.: U.S. Government Printing Office.
U.S. Council for Economic Advisers (1999). Economic Report of the President. Washington, D.C.: U.S. Government Printing Office
Whittington, G., V. Saporta, and A. Singh (1997). The Effect of Hyper-Inflation on Accounting Ratios- Financing Corporate Growth in Industrial Economies. IFC Technical Paper 3. World Bank, Washington D.C.
Wolfensohn, J. (2000), quoted on Worldbank.org in "Remarks by Mark Baird, Transparency and Corporate Governance", April 25, 2000 World Scope Databank.