Singh, Ajit (2010): Are the Institutions of the Stock Market and the Market for Corporate Control Evolutionary Advances for Developing Countries? Published in: Macroeconomics, Finance and Money: Essays in honour of Philip Arestis, Fontana, G., McCombie, J. and Sawyer, M. (eds.) (2010): pp. 311-326.
Download (78kB) | Preview
This paper explores the question of whether the institution of the stock market is likely to be helpful to developing countries in promoting their real economy and ensuring fast industrial growth. The case for and against the stock market inevitably involves a discussion of the important related subjects of corporate finance and corporate governance. Contrary to the literature the paper arrives at a negative overall assessment of the institution of the stock market in relation to economic development. It also contributes by its policy proposals concerning the markets for corporate control, which again are in conflict with much of the conventional wisdom on the subject.
|Item Type:||MPRA Paper|
|Original Title:||Are the Institutions of the Stock Market and the Market for Corporate Control Evolutionary Advances for Developing Countries?|
|English Title:||Are the Institutions of the Stock Market and the Market for Corporate Control Evolutionary Advances for Developing Countries?|
|Keywords:||Stock market; Market for corporate control; Corporate finance; Corporate governance|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development
A - General Economics and Teaching > A1 - General Economics
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
|Depositing User:||Ajit Singh|
|Date Deposited:||16. Aug 2010 01:00|
|Last Modified:||10. Mar 2015 22:04|
Allen, F. and Gale, D. (2000) Comparing Financial Systems, the MIT press, Massachusetts.
Aresits, P., Demetriades, P. and Luintel, K. (2001) ‘Financial Development and Economic Growth: The Role of Stock Markets’, Journal of Money, Credit and Banking, 33(1), 16-41.
Barberis , Nicholas and Thaler, Richard H. (2003) “ A Survey of Behavioral Finance. ” In Handbook of the Economics of Finance. George M. Constantinides, Milton Harris, and Rene' Stultz editors. Elsevier Science, North Holland, Amsterdam.
Black, B. and Gilson, R. (1998) ‘Venture capital and the structure of capital markets: banks versus stock markets’, Journal of Financial Economics, Volume 47, No.8, 243-277.
Fama, E. (1970) ‘Efficient capital markets: A review of theory and empirical work’. Journal of Finance, vol. 25, 383-417.
Feldstein, M. (1998) ‘Trying to do too much’, Financial Times, March 3, 1998.
Greenspan, A. (1998) ‘Testimony before the Committee on Banking and Financial Services, US House of Representatives, January 30, 1998.
Gugler,K., Mueller, D. and Yurtoglu, B. (2004). ‘Corporate Governance and Globalization’.Oxford Review of Economic Policy, Special Issue on Globalisation, Vol.20, Issue1, 129-156.
Hong, H. and Stein, J.C. (2007) ‘Disagreement and the Stock Market’, The Journal of Economic Perspectives, Spring 2007, Volume 21, No.2, 109-128.
Hoshi, T. and Kashyap, A. (2001) Corporate Financing and Governance in Japan: The Road to the Future, the MIT press, Massachusetts.
Keynes, J. M. (1936) The General Theory of Money, Interest and Employment. Macmillan, London.
King, R.G. and Levine, R. (1993) ‘Financial Intermediation and Economic Development.’ In Capital Markets and Financial Intermediation (eds.), Colin Mayer and Xavier Vives). Cambridge: Cambridge University Press.
Levine, R. (1997) ‘ Financial Development and Economic Growth: Views and Agenda’. Journal of Economic Literature, June, 35 (2), 688-726
Levine, R. and Zervos, S. (1998) ‘Stock Markets, Banks, and Economic Growth’. The American Economic Review, Vol. 88 (3) 537-558.
Myers, S.C. and Majluf, N.S. (1984). ‘Corporate financing and investment decisions when firms have information that investors do not have’. Journal of Financial economics, vol. 13, pp. 187-221.
Pagano, M., (1993) ‘Financial Markets & Growth: An Overview’. American Economic Review, 37, 613-22.
Porter, M.E. (1992) ‘Capital Disadvantage: America’s Failing Capital Investment System’. Harvard Business Review, Vol, no?, 65-82.
Ravenscraft, D.J., and. Scherer, F.M (1987) Mergers, Sell Offs and Economic Efficiency. Brookings Institution.
Scherer, F. M. (2006) ‘A New Retrospective on Mergers’, Review of Industrial Organization, Volume 28, Issue 4, June 2006, 327-341.
Shiller, R.J., (2000) ‘Irrational Exuberance’, Princeton University Press, New Jersey.
Shleifer, A., (2000) ‘Inefficient Markets: An Introduction to Behavioural Finance’, Oxford University Press, Oxford.
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.480-486.
Singh, A. (1993) ‘The Stock Market and Economic Development: Should Developing Countries Encourage Stock Markets?’ UNCTAD Review, 4, 1-28.
Singh, A. (1995) ‘Corporate Financial Patterns in Industrialising Economies. A Comparative International Study’. IFC Technical Paper No.2, The World Bank, Washington, DC.
Singh, A. (1997) ‘Financial Liberalisation, Stock Markets and Economic Development’. Economic Journal, vol.107, 771-782.
Singh, A. (1998) ‘Liberalisation, The Stock Market and the Market for Corporate Control: A Bridge Too Far for the Indian Economy?’ In Ishar Judge Ahluwalia and IMD Little (eds.), India’s Economic Reforms and Development: Essays for Manmohan Singh, Oxford University Press, Oxford. pp.169-196.
Singh, A. and Glen, J. (2005) ‘Corporate governance, competition and finance: rethinking lessons from the Asian crisis’ Eastern Economic Journal, Volume 31, 219-243.
Singh, A. (2005) ‘Globalisation and the Regulation of FDI: New Proposals from the European Community and Japan’, Contributions to Political Economy, Vol. 24, 99-121.
Stiglitz, J. (1994) ‘The Role of the State in Financial Markets’. Proceedings of the World Bank Annual Conference on Development Economics, The World Bank, Washington, DC.
Sudweeks, L.B. (1990) Equity Market Development in Developing Countries, New York, Westport, Connecticut, London.
Summers, L.H. (1999) Quoted in article ‘Winning ways: ready bucks and a flair of risk’, Financial Times, 14 December 1999.
Tobin, J., (1984) ‘On the efficiency of the financial system’. Lloyds Bank Review, July, 1-15.
Tichy, G. (2002) ‘What do we know about the success and failure of mergers?’Journal of Industry, Competition and Trade, Vol.1, Issue 4.
World Bank (1989) World Development Report, World Bank, Oxford University Press.
World Bank (1993) The East Asian Miracle, World Bank, Oxford University Press, New York.