Journal of governance and regulation volume 4, issue 1, 2015, continued 1. Capital structure that maximizes the value of company or stock prices is the best capital structure husnan and pudjiastuti, 1994. The changes in economic scenario and the economic growth have raised the interest of indians as well as foreign. When these flows are high, quant funds are able to implement arbitrage strategies more effectively, which in turn leads to lower profitability of market anomalies in the future, and vice versa. Integrating basel capital management into a coherent business model 6 the future role of economic capital based models in regulatory capital and strategic riskbased performance management 10 ensuring your market risk function is fit for purpose in the 21st century 16 designing an efficient businessdriven integrated. Difference between money market and capital market top. Introduction traditionally, in both german corporation 1 and stock exchange law 21, there have been no provisions against insider trading. In order to get access to the latest developments in this area i have used a number of articles. Capital market performance indicators and economic growth in. Capital markets help channelise surplus funds from savers to institutions which then invest them into productive use. Capital markets research in accounting sciencedirect. Ibfd journal articles finance and capital markets ibfd. The structure of a global capital market has three components, as shown in figure 1.
Capital market may 21 to june 3 2018 free pdf download. The capital market has, however, been gaining importance in japan over the past. Capital market returns an overview sciencedirect topics. Consequently, financial researchers distinguish among three versions of the efficient markets hypothesis, depending on what. Capital market efficiency and arbitrage efficacy journal. Over the past few decades, changing technology and improving communi. Nigeria capital market, market capitalization, all.
The development of capital market and its impact on providing. We will take the data of pakistani stock market, karachi stock exchange kse which is the largest and oldest capital market of pakistan which was founded in independence year. As such, the capital market helps in capital formation and economic growth of the country. The basic purpose of managing working capital is controlling of current financial resources of a firm in such a way. The nigerian capital market represents a small but growing proportion of the nations economy. It mobilizes funds from people for further investments in the productive. The capital market in nigeria in historical perspective. Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. Pdf impact of capital market on the economic growth in. International journal of research and innovation in social science ijriss volume iii, issue ii. Factors affecting the capital structure iosr journals. In 2012 the financial sector in indonesia was only around.
Capital markets law journal is essential for all serious capital markets practitioners and for academics with an interest in this growing field around the world. Business magazines can be requested in swen word and the allusione team will provide fee ebooks and mags. The financial collapse of the enron corporation and its. It is recommended that stringent requirement for entry into the capital market should be relaxed and adequate publicity should be given to the activity at the capital market, it is believed that when these recommendations are implemented, the impact of capital market. One of the most controversial aspects of globalization is capitalmarket liberalizationnot so much the liberalization of rules governing foreign direct investment, but those affecting shortterm capital flows, speculative hot capital that can come into and out of a country. The capital market law articles are formulated to regulate and develop the capital market, regulate the issuance of securities and supervise its transactions as well as supervising authorized persons licensed by cma. International journal of economics and financial issues. Notable among the functions of the capital market are mobilization of savings, creation. Capitalmarket liberalization, globalization, and the imf. Recently published articles from journal of financial markets. European journal of economics, finance and administrative sciences. The capital market was not well organized and developed during the british rule because the british government was not interested in economic growth of the country.
Research on this project was supported by a grant from the national science foundation. Axilrod the japanese capital market, particularly in terms of the role played by debt instruments, has been for most of its history a relatively minor element in a financial system dominated by banks. We would like to show you a description here but the site wont allow us. This study analyzes the influence of the stock market and the debt. The principal sources of demand for capital markets research in accounting are fundamental analysis and valuation, tests of market efficiency, and the role of accounting numbers in contracts and the political process. The latest business management research and ideas from hbs faculty. The impact of stock market performance upon economic growth. The principal sources of demand for capital markets research in accounting are fundamental analysis and valuation, tests of market efficiency, and the role of accounting numbers in. An efficient capital market can provide a mechanism for raising capital and also by protecting investors in corporate securities4. On the other hand, money market possesses a range of operational features.
Journal of comparative business and capital market law 8 1986 381400 381 northholland the german insider trading guidelines springgun or scarecrow. The past few months have seen some challenging new developments within the global banking and capital. This paper examines the impact of capital market efficiency on economic growth in india using the time series data on market capitalization, total market turnover and stock price index over the. It is recommended that stringent requirement for entry into the capital market should be relaxed and adequate publicity should be given to the activity at the capital market, it is believed that when these recommendations are implemented, the impact of capital market on the economy will be positive. Pension reform, savings behavior, and capital market. Capital markets and services act 2007 in malaysia, stock market manipulation is defined as the act of transacting the securities of a corporation that are likely to have the effect of raising, lowering or maintaining the price of securities for the purpose of inducing other persons to. Companies raising capital to finance capital expenditures as well as investors saving to accumulate funds for future use require wellfunctioning financial markets and institutions. Journal of international financial markets, institutions. Besides stock market and companyrelated articles, the magazines independent and insightful coverage includes mutual funds, taxation, commodities and personal finance. Capital market live market news, stock prices, portfolio. During last 20 years or so, the capital market in india has witnessed growth in volume of funds raised as well as of transactions. A study of structure and functions of capital markets in india. Pdf capital markets integration and economic growth. Capital market is a market for longterm debt and equity shares.
Capital market plays a crucial role in the development of the economy because it provides channels for mobilization of funds. The study investigated the impact of capital market on the economic growth in nigeria. Journals, trade magazines, annual reports of banks and the internet. Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.
While both represent centralized forms of financing, in the former case the financing is ownerprovided, while in the latter case it is not. Journal of capital markets studies emerald insight. It supplies industry with fixed and working capital and finances mediumterm and longterm borrowings of the central, state and local governments. In addition, it protects investors and citizens from illegal practices. For evaluating structure and functions of capital markets in india. Pension reform, savings behavior, and capital market performance volume 4 issue 1 axel h. The journal provides a mix of thoughtful and indepth consideration of the law and practice of capital markets through analytical articles on topical issues written by leading practitioners and academics in the international arena. Jeffrey l callen, xiaohua fang, baohua xin, and wenjun zhang 2020 capital market consequence of audit office size. The financial collapse of the enron corporation and its impact in the united states capital market. Capital market magazine may 21 june 3, 2018 free download. A developed, dynamic and vibrant capital market can contribute significantly in the speedy economic growth and development. Information about the openaccess journal journal of capital markets studies in doaj. Capital market is the market for long term finance with the maturity period more than one year. In the little book that builds wealth, author pat dorseythe director of equity research for leading independent investment research provider morningstar, inc.
Financial innovation, stock market development, and. International journal of research and innovation in social science ijriss volume ii, issue. This study seeks to determine the impact of capital market on economic growth in nigeria using using annual data from 1981 to 2010. The aim of the journal of capital markets studies jcms is to publish highquality research in the areas of economics and finance with a specific focus on capital markets. It is a market that is regulated by the securities and exchange commission sec, which is the apex regulatory body of the nigerian capital market. Integrating basel capital management into a coherent business model 6 the future role of economic capital based models in regulatory capital and strategic riskbased performance management 10. The capital market has two interdependent and inseparable segments, the primary market and stock s econdary market. Oxford university press is a department of the university of oxford. Capital market includes financial instruments with more. Read articles about capital markets hbs working knowledge. The study aims at investigating the impact of capital market on economic growth in ni geria. Overview of capital market indian capital market authorities governing capital markets in india profile of securities market securities market reforms and regulatory measures to promote investor confidence features of developed capital market. Emerging capital markets all over the world have a history and nigeria is not in any way different. Nigeria capital market operation and economic growth.
This also includes private placement sources of debt and equity as well as organized markets like stock exchanges. I am indebted to arthur laffer, robert aliber, ray ball, michael jensen, james lorie, merton miller, charles nelson, richard roll, william taylor, and ross watts for their helpful comments. Hence, the capital market is an economic institution, which promotes efficiency in capital formation and allocation. Due to migration of article submission systems, please check the status of your submitted manuscript in the relevant system below. Journal of capital markets studies available volumes and issues. Financial innovation, stock market development, and economic growth. We focus primarily on comparing an internal capital market with bank lending. There are, however, different kinds of information that influence security values. Business and human capital challenges today and in the future a research report by the society for human resource management.
Indonesian capital market developments and challenges. Capital market and economic growth in nigeria research and. Effects on comparability and capital market benefits of. The journal proposes to arm its readership with the latest research and commentary in all areas associated with the capital markets. It is the first periodical to focus entirely on aspects related find out more.
Pdf this paper examines the impact of capital market efficiency on economic growth. In this market, the capital funds comprising of both equity and debt are issued and traded. Journal of comparative business and capital market law 8. The capital market contributes to economic growth through the specific services it performs either directly or indirectly. Pdf nowadays, the capital markets have an increasing role and weight in the modern financial. While all the leading institutional investors use capitaline databases, capital market magazine gives access to the databases to individual investors through corporate scoreboard. May 26, 2019 capital markets are markets for buying and selling equity and debt instruments. Study of the problems faced by capital markets and. The textile industry starting from yarn manufacturing industry spinning, cloth. Working capital management is the main part of business management. The money market is a good place for individuals, banks, other companies, and governments to park cash for a. The capital market deals with the stock markets which provide financing through the issuance of shares or common stock in the primary market, and enable the subsequent trading in the secondary market.
Annual time series data were obtained from the central bank of nigeria statistical bulletin and securities and exchange commission statistical bulletin for the. Capital market is an organised market mechanism for effective and efficient transfer of money capital or financial resources from the. Brand values and capital market valuation springerlink. The second is the secondary market, for the exchange of existing securities. The capital market is a market which deals in longterm loans.
The efficient markets hypothesis predicts that market prices should incorporate all available information at any point in time. The first is the primary capital market, for new capital issues by firms and other institutions, including governments. The journal of financial markets publishes high quality original research on applied and theoretical issues related to securities trading and pricing. Again, the capital market was instrumental to the initial 25banks that were able to meet the minimum capital requirement of n25 billion during the banking sector consolidation in 2005.
The stock exchanges along with a host of other intermediaries provide the necessary platform for trading in secondary market and also for clearing and settlement. Difference between money market and capital market with. Capital markets introduction the capital market, like the money market plays a significant role in the national economy. G particularly those related to financial frictions in the emerging markets.
Volume issue 2 capital markets law journal oxford. Recent journal of financial markets articles elsevier. International journal of economics and financial issues vol 6 special. Nigerian perspective, international journal of development and sustainability. The essential functions of the stock and government bond markets in the turkish economy are i providing alternative financing and investment channels to firms and localforeign investors, and ii injecting seriously needed short term capital market money to the economy see kara, 2015.
Internal versus external capital markets the quarterly. The global capital market university at albany, suny. Capital markets channel savings and investment between suppliers of capital such as retail investors and. The impact of capital market on economic growth international. This study on the development of the capital market institution in an emerging economy like nigeria seeks to examine not only how it came to be established but also how this institution has evolved. Practical law capital markets covers topics including structured finance, derivatives, secondary issues and main market ipos and listings. Kse is also the most liquid market of pakistan with the average daily turnover of 525. It furthers the universitys objective of excellence in research, scholarship, and education by publishing worldwide. To learn about our use of cookies and how you can manage your cookie settings, please see our cookie policy. The capital market is so vital to the development of any economy that no country can risk its existence without putting in place measures to regulate the activities of the market. There are also articles on matters of best practice and opinion on legal and. The buyingselling is undertaken by participants such as individuals and institutions.
The purpose of this paper is to examine the usefulness of statistical studies of financial reports and stock market. The capital market plays an important role immobilising saving and channel is in them into productive investments for the development of commerce and industry. By closing this message, you are consenting to our use of cookies. Examination of the present trading system with a view to pin point potential improvements. We model our problem to incorporate financial markets operations, capital flows from foreign nations and the local market capital structure to depict their influence in the level of economic growth within east africa. Journal of capital markets studies directory of open. Adopting firms with higher comparability with adopted firms have greater capital market benefits after adopting ifrs than adopting firms with lower comparability, and capital market benefits for adopting firms in countries with a relatively high percentage of firms that apply ifrs enjoy greater capital market benefits. In the post independence period also the size of capital market is small. Thus, the degree of crosssectional equity market efficiency varies across time with the availability of arbitrage capital. Capital market efficiency and arbitrage efficacy journal of. Area of coverage includes the analysis and design of trading mechanisms, optimal order placement strategies, the role of information in securities markets. This paper presents a framework for analyzing the costs and benefits of internal versus external capital allocation.
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