Testing the three roles of equity markets in developing countries: The case of China

Research output: Contribution to journalArticle

13 Citations (Scopus)

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 languageEnglish
Pages (from-to)1467-1486
Number of pages20
JournalWorld Development
Volume32
Issue number9
DOIs
Publication statusPublished - 2004 Sep

Fingerprint

equity
developing world
developing country
China
market
firm
corporate governance
investor
economic growth
economic development
performance
economics
Equity markets
Developing countries
Testing
financing
price
public
Transmission mechanism
Firm investment

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 journalArticle

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