Financial Crisis Impact On The Development Of The Romanian Capital Market
The recent years have been characterized by important challenges in all areas of the society, mainly in the financial one. The financial markets crisis had a high impact on the stock exchange, affecting mostly the emergent markets, such as Romania, which experienced a severe consequences of the crisis. The main spot market of the stock exchanges was characterized by high volatility in the years following the subrime crisis, especially in 2008. These effects lead to a massive fall in the market value of most of the listed companies, at the same time with the decrease of the market cap and the average of the traded value. The decrease of the traded volume was not only generated by the foreign investors` reluctance to invest in the Romanian capital market, but also by the severe decrease of the prices of the listed companies. The financial crisis altered the consolidation of the internal capital market, strongly emphasising the leading factors that generated the severe contraction of this domain (especially, the cvasidependence on the foreign capitals and the lack of some strong local institutionals, given by – for example - the very late inception of the public pension sector reform). In the Romanian capital market, the subprime crisis altered most of the listed companies and resulted in extreme volatility, that lead to the ìncrease of the investors` risk aversion. Therefore, it is necessary to identify remedies for the present state of the capital market, that will allow the stock exchange to regain its role as an alternative channel for financing the companies.
Volume (Year): 1 (2012)
Issue (Month): 26 (March)
|Contact details of provider:|| Web page: http://www.univath.ro/facultati/facultatea_de_stiinte_economice|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ath:journl:tome:26:v:1:y:2012:i:26:p:54-62. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cosmin Catalin Olteanu and Emilia Vasile)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.