Enhancing the Efficiency of Securities Markets in East Asia
The authors explore the relative efficiency of stock markets across countries using newly available data on transactions costs and the quality of the informational environment of stock markets. These new measures are constructed from firm-level sto...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/02/7361429/enhancing-efficiency-securities-markets-east-asia http://hdl.handle.net/10986/7134 |
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okr-10986-71342021-04-23T14:02:33Z Enhancing the Efficiency of Securities Markets in East Asia Ghosh, Swati Revilla, Ernesto ACCOUNTING ACCOUNTING STANDARDS ALLOCATION OF RESOURCES ASSETS BANK DEPOSITS BENCHMARK BENCHMARKING BENCHMARKS BONDS BORROWING BROKERS BUDGET DEFICITS CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CORPORATE GOVERNANCE CREDIT RISK DOMESTIC MARKET EFFICIENT MARKET EFFICIENT MARKETS EMPIRICAL ANALYSIS EQUITY CAPITAL EQUITY MARKETS EXCESS DEMAND FINANCIAL MARKET FOREIGN EXCHANGE GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT INCOME LEVELS INFLATION INFORMATION DISCLOSURE INSIDER TRADING INSURANCE INSURANCE INDUSTRY INTEREST RATE INVESTOR PROTECTION LIQUIDITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET INFORMATION MARKET INTEREST RATES MARKET PRICES MARKET RETURN MARKET RISK MARKET VALUE MARKETPLACE OPEN ECONOMY OPPORTUNITY COSTS PACIFIC REGION PER CAPITA INCOME PRICE CHANGES PRICE EFFECT PRICE VOLATILITY PURCHASE PRICE PURCHASING RETAIL RISK MANAGEMENT RISK SHARING SALE SALES SAVINGS SECURITIES SECURITIES MARKETS SETTLEMENT SYSTEMS SHAREHOLDERS STATISTICAL ANALYSIS STOCK EXCHANGES STOCK MARKETS STOCK PRICES STOCKS SUPPLIERS SYSTEMIC RISK TRADING SYSTEMS TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY TURNOVER USE VALUE VOLATILITY The authors explore the relative efficiency of stock markets across countries using newly available data on transactions costs and the quality of the informational environment of stock markets. These new measures are constructed from firm-level stock returns in a panel of 60 countries for the period 2000-04. The authors then develop a framework to understand the linkages between efficiency, liquidity, and their determinants. To give empirical content to the framework, they study the determinants of transactions costs and the quality of the informational environment. They find that some institutional arrangements-such as the availability of stock lending and short selling-and the openness of markets are associated with lower transactions costs. The authors also find that, although disclosure rules for directors and officers of listed firms are essential, the ability of shareholders to seek redress is more conducive to a better informational environment in stock markets. This in turn serves as the basis for the policy framework and recommendations for the East Asian region. In particular, the region needs to continue to strengthen the implementation and enforcement of corporate governance, to further enhance the market and institutional infrastructure, and focus on policy measures to foster a larger and more diversified investor base to continue to see gains in the efficiency of stock markets. 2012-06-05T16:53:18Z 2012-06-05T16:53:18Z 2007-02 http://documents.worldbank.org/curated/en/2007/02/7361429/enhancing-efficiency-securities-markets-east-asia http://hdl.handle.net/10986/7134 English Policy Research Working Paper; No. 4129 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACCOUNTING STANDARDS ALLOCATION OF RESOURCES ASSETS BANK DEPOSITS BENCHMARK BENCHMARKING BENCHMARKS BONDS BORROWING BROKERS BUDGET DEFICITS CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CORPORATE GOVERNANCE CREDIT RISK DOMESTIC MARKET EFFICIENT MARKET EFFICIENT MARKETS EMPIRICAL ANALYSIS EQUITY CAPITAL EQUITY MARKETS EXCESS DEMAND FINANCIAL MARKET FOREIGN EXCHANGE GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT INCOME LEVELS INFLATION INFORMATION DISCLOSURE INSIDER TRADING INSURANCE INSURANCE INDUSTRY INTEREST RATE INVESTOR PROTECTION LIQUIDITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET INFORMATION MARKET INTEREST RATES MARKET PRICES MARKET RETURN MARKET RISK MARKET VALUE MARKETPLACE OPEN ECONOMY OPPORTUNITY COSTS PACIFIC REGION PER CAPITA INCOME PRICE CHANGES PRICE EFFECT PRICE VOLATILITY PURCHASE PRICE PURCHASING RETAIL RISK MANAGEMENT RISK SHARING SALE SALES SAVINGS SECURITIES SECURITIES MARKETS SETTLEMENT SYSTEMS SHAREHOLDERS STATISTICAL ANALYSIS STOCK EXCHANGES STOCK MARKETS STOCK PRICES STOCKS SUPPLIERS SYSTEMIC RISK TRADING SYSTEMS TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY TURNOVER USE VALUE VOLATILITY |
| spellingShingle |
ACCOUNTING ACCOUNTING STANDARDS ALLOCATION OF RESOURCES ASSETS BANK DEPOSITS BENCHMARK BENCHMARKING BENCHMARKS BONDS BORROWING BROKERS BUDGET DEFICITS CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CORPORATE GOVERNANCE CREDIT RISK DOMESTIC MARKET EFFICIENT MARKET EFFICIENT MARKETS EMPIRICAL ANALYSIS EQUITY CAPITAL EQUITY MARKETS EXCESS DEMAND FINANCIAL MARKET FOREIGN EXCHANGE GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT INCOME LEVELS INFLATION INFORMATION DISCLOSURE INSIDER TRADING INSURANCE INSURANCE INDUSTRY INTEREST RATE INVESTOR PROTECTION LIQUIDITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET INFORMATION MARKET INTEREST RATES MARKET PRICES MARKET RETURN MARKET RISK MARKET VALUE MARKETPLACE OPEN ECONOMY OPPORTUNITY COSTS PACIFIC REGION PER CAPITA INCOME PRICE CHANGES PRICE EFFECT PRICE VOLATILITY PURCHASE PRICE PURCHASING RETAIL RISK MANAGEMENT RISK SHARING SALE SALES SAVINGS SECURITIES SECURITIES MARKETS SETTLEMENT SYSTEMS SHAREHOLDERS STATISTICAL ANALYSIS STOCK EXCHANGES STOCK MARKETS STOCK PRICES STOCKS SUPPLIERS SYSTEMIC RISK TRADING SYSTEMS TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY TURNOVER USE VALUE VOLATILITY Ghosh, Swati Revilla, Ernesto Enhancing the Efficiency of Securities Markets in East Asia |
| geographic_facet |
East Asia and Pacific |
| relation |
Policy Research Working Paper; No. 4129 |
| description |
The authors explore the relative
efficiency of stock markets across countries using newly
available data on transactions costs and the quality of the
informational environment of stock markets. These new
measures are constructed from firm-level stock returns in a
panel of 60 countries for the period 2000-04. The authors
then develop a framework to understand the linkages between
efficiency, liquidity, and their determinants. To give
empirical content to the framework, they study the
determinants of transactions costs and the quality of the
informational environment. They find that some institutional
arrangements-such as the availability of stock lending and
short selling-and the openness of markets are associated
with lower transactions costs. The authors also find that,
although disclosure rules for directors and officers of
listed firms are essential, the ability of shareholders to
seek redress is more conducive to a better informational
environment in stock markets. This in turn serves as the
basis for the policy framework and recommendations for the
East Asian region. In particular, the region needs to
continue to strengthen the implementation and enforcement of
corporate governance, to further enhance the market and
institutional infrastructure, and focus on policy measures
to foster a larger and more diversified investor base to
continue to see gains in the efficiency of stock markets. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ghosh, Swati Revilla, Ernesto |
| author_facet |
Ghosh, Swati Revilla, Ernesto |
| author_sort |
Ghosh, Swati |
| title |
Enhancing the Efficiency of Securities Markets in East Asia |
| title_short |
Enhancing the Efficiency of Securities Markets in East Asia |
| title_full |
Enhancing the Efficiency of Securities Markets in East Asia |
| title_fullStr |
Enhancing the Efficiency of Securities Markets in East Asia |
| title_full_unstemmed |
Enhancing the Efficiency of Securities Markets in East Asia |
| title_sort |
enhancing the efficiency of securities markets in east asia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/02/7361429/enhancing-efficiency-securities-markets-east-asia http://hdl.handle.net/10986/7134 |
| _version_ |
1764401501974822912 |