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Financial Markets And The Allocation Of Capital

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  • Jeffrey Wurgler

Abstract

Financial markets appear to improve the allocation of capital--across 65 countries, those with developed financial markets increase investment more in growing industries, and decrease investment more in declining industries, than financially undeveloped countries. The efficiency of capital allocation is also negatively correlated with the extent of state ownership in the economy, and positively correlated with the degree of firm-specific movement

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File URL: http://icfpub.som.yale.edu/publications/2498
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Bibliographic Info

Paper provided by Yale School of Management in its series Yale School of Management Working Papers with number ysm123.

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Date of creation: 01 Aug 1999
Date of revision: 01 Mar 2001
Handle: RePEc:ysm:somwrk:ysm123

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Web page: http://icf.som.yale.edu/
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