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Emerging Equity Markets: Growth, Benefits, and Policy Concerns

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  • Feldman, Robert A
  • Kumar, Manmohan S

Abstract

Since the mid-1980s, stock market activity has increased substantially in many developing countries. This article first examines the main characteristics of emerging stock markets and illustrates the evolution of equity prices in these markets during the last decade. It then discusses the reasons for the markets' growth and assesses the extent to which they have been affected by domestic policies and external factors. The authors discuss the likely benefits of these markets, the effects any abrupt correction in stock prices could have for the economy, and the ways in which these markets can be made more efficient. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Feldman, Robert A & Kumar, Manmohan S, 1995. "Emerging Equity Markets: Growth, Benefits, and Policy Concerns," The World Bank Research Observer, World Bank, vol. 10(2), pages 181-200, August.
    • Handle: RePEc:oup:wbrobs:v:10:y:1995:i:2:p:181-200
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    2. Duasa, Jarita & Kassim, Salina, 2008. "Hot money and economic performance: An empirical analysis," MPRA Paper 12470, University Library of Munich, Germany.
    3. April M. Knill, 2013. "Does Foreign Portfolio Investment Reach Small Listed Firms?," European Financial Management, European Financial Management Association, vol. 19(2), pages 251-303, March.
    4. Sami, Heibatollah & Zhou, Haiyan, 2004. "A comparison of value relevance of accounting information in different segments of the Chinese stock market," The International Journal of Accounting, Elsevier, vol. 39(4), pages 403-427.
    5. Mr. Mohamed A. El-Erian & Mr. Manmohan S. Kumar, 1994. "Emerging Equity Markets in Middle Eastern Countries," IMF Working Papers 1994/103, International Monetary Fund.
    6. Fałat-Kilijańska Ilona & Gláserová Jana & Luty Piotr & Otavová Milena, 2020. "Determinants of the Financing Structure of the Acquiring Companies in the Pre-Merger Period. Results of the Research," Financial Sciences. Nauki o Finansach, Sciendo, vol. 25(4), pages 16-42, December.
    7. Robert Ley, 1997. "Internal sources of development finance: Concepts, issues and strategies P.C. Kumar Quorum Books, 1994, 161 pp," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 25(3), pages 318-322, September.
    8. Samie Ahmed Sayed & Latha Sreeram, 2017. "Factors Mitigating Firm-specific Information Asymmetry and Target Price Accuracy in India," Vikalpa: The Journal for Decision Makers, , vol. 42(4), pages 220-233, December.
    9. Uras, Burak R., 2020. "Finance and development: Rethinking the role of financial transparency," Journal of Banking & Finance, Elsevier, vol. 111(C).
    10. Yılmaz, Işıl Sevilay & Tanyeri, Başak, 2016. "Global Merger and Acquisition (M&A) activity: 1992–2011," Finance Research Letters, Elsevier, vol. 17(C), pages 110-117.
    11. Knill, April M., 2005. "Taking the bad with the good : volatility of foreign portfolio investment and financial constraints of small firms," Policy Research Working Paper Series 3797, The World Bank.
    12. Bijay, K. C. & Snowden, P. N., 1999. "Pricing Shares on a Nascent Market: The Nepal Stock Exchange 1994-96," World Development, Elsevier, vol. 27(6), pages 1083-1096, June.
    13. Alles, Lakshman & Murray, Louis, 2013. "Rewards for downside risk in Asian markets," Journal of Banking & Finance, Elsevier, vol. 37(7), pages 2501-2509.
    14. Tsun Se Cheong & Andy W. W. Cheng & Victor J. Li, 2019. "Evolutionary Trend Of Foreign Investment In China: A Combined Decomposition And Transitional Dynamics Approach," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 1037-1055, September.

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