Abstract
The role of equity markets in economic development has been increasingly recognized in recent years. Yet few studies have analyzed the transmission mechanisms between them. This paper looks at this missing agenda by indirectly assessing whether the equity markets fulfill the following roles: (a) financing firms' investment; (b) improving firms' corporate governance and, hence, performance; and (c) signaling information regarding issuers to public investors through stock prices--all of which are essential in achieving economic growth for developing countries. This paper assesses the development stages of China's equity markets by testing whether the above three roles are fulfilled.
| Original language | English |
|---|---|
| Pages (from-to) | 1467-1486 |
| Number of pages | 20 |
| Journal | World Development |
| Volume | 32 |
| Issue number | 9 |
| DOIs | |
| Publication status | Published - 2004 Sep |
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Keywords
- China
- Corporate governance
- Developing countries
- Equity market
- Investment
- Stock prices
ASJC Scopus subject areas
- Economics and Econometrics
- Development
- Geography, Planning and Development
- Sociology and Political Science
Cite this
Testing the three roles of equity markets in developing countries : The case of China. / Shirai, Sayuri.
In: World Development, Vol. 32, No. 9, 09.2004, p. 1467-1486.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Testing the three roles of equity markets in developing countries
T2 - The case of China
AU - Shirai, Sayuri
PY - 2004/9
Y1 - 2004/9
N2 - The role of equity markets in economic development has been increasingly recognized in recent years. Yet few studies have analyzed the transmission mechanisms between them. This paper looks at this missing agenda by indirectly assessing whether the equity markets fulfill the following roles: (a) financing firms' investment; (b) improving firms' corporate governance and, hence, performance; and (c) signaling information regarding issuers to public investors through stock prices--all of which are essential in achieving economic growth for developing countries. This paper assesses the development stages of China's equity markets by testing whether the above three roles are fulfilled.
AB - The role of equity markets in economic development has been increasingly recognized in recent years. Yet few studies have analyzed the transmission mechanisms between them. This paper looks at this missing agenda by indirectly assessing whether the equity markets fulfill the following roles: (a) financing firms' investment; (b) improving firms' corporate governance and, hence, performance; and (c) signaling information regarding issuers to public investors through stock prices--all of which are essential in achieving economic growth for developing countries. This paper assesses the development stages of China's equity markets by testing whether the above three roles are fulfilled.
KW - China
KW - Corporate governance
KW - Developing countries
KW - Equity market
KW - Investment
KW - Stock prices
UR - http://www.scopus.com/inward/record.url?scp=3543002217&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=3543002217&partnerID=8YFLogxK
U2 - 10.1016/j.worlddev.2004.05.001
DO - 10.1016/j.worlddev.2004.05.001
M3 - Article
AN - SCOPUS:3543002217
VL - 32
SP - 1467
EP - 1486
JO - World Development
JF - World Development
SN - 1873-5991
IS - 9
ER -