Stock Market Development and Capital Accumulation: Does Law Matter? A Case Study of India

Sarkar, Prabirjit (2007): Stock Market Development and Capital Accumulation: Does Law Matter? A Case Study of India.

Abstract

Stock market development has been an important part of financial liberalisation in the less developed countries (LDCs). In the pro-liberalisation circle, stock market is assigned to play an important role in the capitalist development of the LDCs. This is also true for the liberalisation regime of India. With the recognition of the importance of stock market in economic development there is a call for a better protection of the interests of the shareholders. In this perspective we shall examine whether share market developments have any long-term relationship with capital accumulation and whether legal changes promoting the interest of the shareholders exerted any long-term effect on Indian share market developments.

• Item Type: MPRA Paper
• Institution: CBR, University of Cambridge
• Language: English
• Keywords: corporate governance; shareholder protection; capital accumulation; development; India
• Subjects: K - Law and Economics > K2 - Regulation and Business Law > K22 - Business and Securities Law; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East