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Aspects Regarding The Development Of Bucharest Stock Exchange

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Author Info
Mirela MATEI () (Petroleum and Gas University of Ploiesti)
Abstract

Capital market in Romania is in a slow process of development, because the performances of the Bucharest Stock Exchange (BSE) are ranking it among the last ones in Europe. The causes of slow development of capital market and remain behind compared to other Eastern European markets are numerous and consist of: late establishment of the two parts of the capital market – stock exchange and OTC market, modest use of capital market in the privatization process of state-owned companies; compromise of investment funds after scandals with SAFI and FNI; delay reform of the pension system, withdrawal from Bucharest Stock Exchange of major companies such as Dacia Piteºti, Arctic Gãieºti or Terapia Cluj Napoca, using bank credit as financing method of Romanian companies. Products lunched by BSE must satisfy the requirements of local and foreign investors who were already accustomed to derivatives launched by the Financial and Commodities Exchange from Sibiu. In addition, Bucharest Stock Exchange should use the experience of major European and American ones that run large financial processes of innovation and launched contracts on weather, volatility indices, price indexes for real estate, etc.

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Publisher Info
Article provided by Institute of National Economy in its journal Romanian Journal of Economics.

Volume (Year): 27 (2008(XVIII))
Issue (Month): 2(36) (December)
Pages: 145-159
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Handle: RePEc:ine:journl:v:2:y:2008:i:36:p:145-159

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Related research
Keywords: securities; derivatives; capital markets; development; integration; and financial innovation;

Find related papers by JEL classification:
G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

References listed on IDEAS
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  1. Stijn Claessens, 2006. "Corporate Governance and Development," World Bank Research Observer, Oxford University Press, vol. 21(1), pages 91-122.
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This page was last updated on 2009-12-18.


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