scholarly journals Creating Domestic Capital Markets in Developing Countries: Perspectives from Market Participants

10.1596/33617 ◽  
2020 ◽  
Author(s):  
Dimitrios G. Demekas ◽  
Anica Nerlich
Keyword(s):  
Developing Countries ◽  
Capital Markets ◽  
Market Participants ◽  
Domestic Capital

The Capital Market Authority Effectiveness in the Regulation of Financial Markets perspectives from the financial sector actors

2012 ◽  
Vol 02 (11) ◽  
pp. 15-24
Author(s):  
Charles Kombo Okioga
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Markets ◽  
Capital Market ◽  
Financial Regulation ◽  
International Standards ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Market Participants ◽  
New Business

Capital Market Authority in Kenya is in a development phase in order to be effective in the regulation of the financial markets. The market participants and the regulators are increasingly adopting international standards in order to make the capital markets in sync with those of developed markets. New products are being introduced and new business lines are being established. The Capital Markets Authority (Regulator) is constantly reviewing existing regulations and recommending changes to regulate the market properly. Business lines and activities are being harmonized by market participants to provide a one stop solution in order to meet the financial and securities services needs of the investors. The convergence of business lines and activities of market intermediaries gives rise to the diversity of a firm’s business operations to meet multiplicity of regulations that its activities are subject to. The methodology used in this study was designed to examine the relationship between capital markets Authority effective regulation and the performance of the financial markets. The study used correlation design, the study population consisted of 30 employees in financial institutions regulated by Capital Markets Authority and 80 investors. The study found out that effective financial market regulation has a significant relationship with the financial market performance indicated by (r=0.571, p<0.01) and (r=0.716, p≤0.01, the study recommended a further research on the factors that hinder effective financial regulation by the Capital Markets Authority.

scholarly journals Deconstruction and Reconstruction of the “Comply or Explain” Principle in EU Capital Markets

2015 ◽  
Vol 5 (3) ◽  
pp. 233-288 ◽  
Author(s):  
Konstantinos Sergakis
Keyword(s):  
Capital Markets ◽  
Potential Role ◽  
Investment Strategies ◽  
Market Participants ◽  
Monitoring Process ◽  
Future Potential ◽  
Continued Use ◽  
Transparency And Disclosure ◽  
The Eu ◽  
Comply Or Explain

Abstract The “comply or explain” principle has already acquired significant importance in corporate law and regulations and is considered to be the preferred regulatory tool in the EU for increasing transparency and disclosure of market participants’ strategies and activities. The flexibility of the principle is perceived as the most suitable way to create indirect coordination of practices amongst market actors, as well as better mutual understanding of their different priorities. Having initially shown its considerable appeal in the area of corporate governance statements issued by corporate entities, it has now expanded its influence into other areas serving similar transparency imperatives, such as the exercise of stewardship responsibilities by institutional investors and proxy advisors. In this paper, we will focus on the merits and shortfalls of the “comply or explain” principle in all the above-mentioned areas, both at national and at EU levels, and will critically challenge its effectiveness in the current regulatory framework. Moreover, we will seek to justify its continued use by demonstrating its future potential role as a veritable dialogue spectrum between different market participants. Lastly, we will emphasise the need for a soft monitoring process from national regulators which will enable both the “comply or explain” principle and its users to participate in a holistic effort for the adoption of sound investment strategies via the fruitful exchange of views and ideas and better communication with regard to their respective role in capital markets.

Review of de Soto's The Mystery of Capital

2001 ◽  
Vol 39 (4) ◽  
pp. 1215-1223 ◽  
Author(s):  
Christopher Woodruff
Keyword(s):  
Developing Countries ◽  
Capital Markets ◽  
Developing World ◽  
Access To Credit ◽  
Hernando De Soto

In The Mystery of Capital, Hernando de Soto promotes his explanation of why formal capital markets function poorly in developing countries. De Soto argues that much of the population of developing countries lacks access to credit, not because they lack assets, but because ownership of their property is secured informally, which prevents the use of property as collateral. The inability to convert assets into capital keeps the developing world from benefiting from capitalism.

Financial Nexus

2019 ◽  
pp. 70-129
Keyword(s):  
Developing Countries ◽  
Capital Markets ◽  
Banking Sector ◽  
High Impact ◽  
Estimation Techniques ◽  
Large Sample ◽  
Empirical Results ◽  
Time Period ◽  
Bank Soundness

This book chapter investigates the financial nexus generated by bank soundness, concentration, and efficiency in the banking sector, as well as the development of the capital markets. The selected databases includes the time period between 1997 and 2010 for a large sample of 63 developed and developing countries. The empirical findings suggested that bank performance has a high impact on the relation between soundness, structural and functional characteristics of the banking sector. The econometric framework is complex and the empirical results appear to be robust for various measures of the selected variables and for distinct estimation techniques.

Using Financial Instruments

2019 ◽  
pp. 37-46
Author(s):  
Alan N. Rechtschaffen
Keyword(s):  
Financial Market ◽  
Capital Markets ◽  
Federal Reserve ◽  
Financial Instruments ◽  
Case Scenario ◽  
Worst Case ◽  
Financial Instrument ◽  
Market Participants ◽  
Managing Risk ◽  
The Stability

Capital markets provide enterprises with the opportunity to access capital to maintain their level of business activity. Therefore, ensuring the stability of the capital markets and preventing systemic failure are paramount concerns of the Federal Reserve and other financial market regulators. Access to capital markets is facilitated through the use of financial instruments that allow risk to be negotiated among market participants. When using financial instruments to achieve goals, a corporation must be aware of several considerations: the value of the asset underlying the financial instrument, duties or obligations the corporation owes to the other party to the contract, the implications and “worst case scenario” of the performance of the financial instrument, the risk of the transaction, and how the specific transaction can achieve the corporation's goals. This chapter discusses goal-oriented investing, achieving investment goals, and managing risk.

Tax Treaties as Means of Encouraging Investment in Developing Countries

1971 ◽  
Vol 6 (2) ◽  
pp. 198-208
Author(s):  
Sheldon Fink
Keyword(s):  
Developing Countries ◽  
Private Enterprise ◽  
Rapid Development ◽  
Governmental Organization ◽  
Domestic Capital ◽  
Government Aid ◽  
New States ◽  
Short Run ◽  
Foreign Governments ◽  
And Control

In the last twenty-five years more than sixty new states have come into being. Most of these new states are burdened with the problems caused by economic underdevelopment, but are determined to solve those problems. The very fact of underdevelopment, however, has meant that these states are unable to marshall sufficient domestic capital to meet the goals of constant and rapid development. They have, consequently, had to turn to the developed, industrialized nations for aid in achieving those goals.At first, the aid that was given to the developing countries was generally given on a government to government basis. The explanation for the absence of private enterprise in the business of reconstruction and development may be found in the facts of the economic reality of Europe in the late 1940's and of Africa, Asia and Latin America in the 50's and 60's. The problems that had to be solved were so complex and the means for solving them so limited that it seemed that if anything could be done, it would have to be done on the massive, centralized, planned basis which demanded governmental organization and control. Furthermore, in the short-run, at least, the private sector was totally uninterested in any investment which was risky and, so it seemed, not very profitable. Rational economic decisions were, however, in the case of the developing countries, buttressed by an ideological foundation which rejected private enterprise associated with former colonialist masters and emphasized the economic and social benefits of public control of the means of production. In the past ten years, however, ideology has begun to make way for a more pragmatic approach. The developing countries have come to understand that aid from foreign governments often comes in a package with undesirable political wrappings and that, more important, government to government aid simply could not provide enough of the capital that must be raised if ambitious development programmes are to be met.

scholarly journals The rise of domestic capital markets for corporate financing: Lessons from East Asia

2021 ◽  
Vol 122 ◽  
pp. 105987
Author(s):  
Facundo Abraham ◽  
Juan J. Cortina ◽  
Sergio L. Schmukler
Keyword(s):  
East Asia ◽  
Capital Markets ◽  
Corporate Financing ◽  
Domestic Capital

Recession increases risks to Russian leadership

2016 ◽  
Keyword(s):  
Central Bank ◽  
Capital Markets ◽  
Foreign Currency ◽  
State Intervention ◽  
Fourth Quarter ◽  
Growth Trajectory ◽  
Content Type ◽  
Russian Economy ◽  
Domestic Capital ◽  
High Inflation

Significance Recovery will be slower in 2017 than previously estimated, at 0.9% instead of 1.7%, the bank said. The low price of oil is the main burden on the flagging Russian economy. Moreover, high inflation due to the weak ruble will prevent the Central Bank of Russia (CBR) from lowering its benchmark rate from the current 11% before the fourth quarter of 2016. Impacts Protracted economic turmoil could translate into street protests, the first challenge Putin has faced since the 2011 election. State intervention in the economy will increase given the weakness of investor funding and domestic capital markets. Unless Western sanctions are lifted in 2016, a return to a growth trajectory is unlikely. Foreign currency reserves may run low by mid-2017 unless the economy recovers.

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