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The Development of Stock Markets: In Search of a Theory
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TLDR
In this article, the authors provide a framework for the main determinants of stock market development, including supply factors, demand factors, institutional factors and economic policies, and conclude that stock market is a difficult, complex, multi-faceted, and long-term process.Abstract:
This paper aims to provide a framework for the main determinants of stock market development. Assessing stock market development requires not only an understanding of its main determinants but also a clear definition of what “stock market development” means and how progress towards it can be measured. This paper reconsiders the concept of stock market development and suggests five dimensions for assessing it. In addition, it proposes four sets of factors that shape or determine stock market development: supply factors, demand factors, institutional factors and economic policies. While both supply factors and demand factors serve as “building blocks” of the stock market, institutional factors and economic policies serve as “supporting blocks. The paper concludes by emphasizing three principles. First, stock market development is a difficult, complex, multi-faceted, and long-term process. Second, stock market development is only part of the overall development of a country’s financial system. Third, stock market development is mainly a private sector activity. Keywords : Stock Markets Development; Measurement of Stock Market Development; Demand for Stocks; Supply of Stocks; Institutional Factors JEL Classifications : G1; G15; G18; G19read more
Citations
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Journal ArticleDOI
Factors affecting stock exchange investment in kurdistan
TL;DR: In this article, the authors examined the factors affecting stock exchange investment in Kurdistan and particularly in Erbil and found that supply and demand play an essential role in investment in stock exchange in Kurdistan.
Journal Article
What are The Determinants of Stock Market Development in Emerging Markets
TL;DR: In this article, the authors explored the determinants of stock market development in emerging markets using the pooled ordinary least squares (OLS), fixed and random effects approaches with data ranging from 1994 to 2014.
Dissertation
A critical analysis of investor protection under Saudi Stock market regulations
TL;DR: In this paper, the authors focus on the question of whether or not the existing regulations of the Saudi stock market adequately protect investor from poor disclosure, insider trading and market manipulation induced partly by market brokers.
Posted Content
Financial Development, the Structure of Capital Markets, and the Global Digital Divide
TL;DR: The finding that financial development is an important determinant of ICT development implies that countries with underdeveloped financial markets may continue to lag behind in the use of I CT.
References
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Journal ArticleDOI
The Pricing of Options and Corporate Liabilities
Fischer Black,Myron S. Scholes +1 more
TL;DR: In this paper, a theoretical valuation formula for options is derived, based on the assumption that options are correctly priced in the market and it should not be possible to make sure profits by creating portfolios of long and short positions in options and their underlying stocks.
Book
The theory of economic development
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
Journal ArticleDOI
Legal Determinants of External Finance
TL;DR: The authors showed that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets than those with stronger investor protections.