Promoting Access to Primary Equity Markets : A Legal and Regulatory Approach
This paper examines legal and regulatory measures that can be taken to promote access to the primary market in emerging market economies. While capital market development depends on many factors including, primarily, a favorable macroeconomic environment, an appropriately designed and effective lega...
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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/2006/04/6731299/promoting-access-primary-equity-markets-legal-regulatory-approach http://hdl.handle.net/10986/8713 |
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okr-10986-8713 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
ACCOUNTING ACQUISITIONS ADVERSE IMPACT ADVERTISING BANKRUPTCY BANKS BENEFICIAL OWNER BONDS CAPITAL GAINS TAXES CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK COLLECTIVE COMMERCIAL TRANSACTIONS COMPANY COMPETITIVE ADVANTAGE CONSUMERS CONTINUOUS DISCLOSURE CONTRACTUAL ARRANGEMENTS CONTROLLING SHAREHOLDER CONTROLLING SHAREHOLDERS CORPORATE GOVERNANCE CORPORATE GOVERNANCE REFORM COST OF CAPITAL DAMAGES DEBT DISCLOSURE REQUIREMENTS DISCLOSURE RULES DISPUTE RESOLUTION DISTRIBUTION OF INCOME DOMESTIC COMPANIES DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC STOCK EXCHANGES ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMICS EMERGING MARKET EMERGING MARKETS EQUITY MARKETS EQUITY OFFERS EXPROPRIATION EXTERNAL FINANCING FAIR FINANCIAL CRISIS FINANCIAL DISCLOSURE FINANCIAL INFORMATION FINANCIAL MARKETS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL STATEMENTS FOREIGN INVESTORS FULL DISCLOSURE GDP GLOBAL MARKETS GLOBALIZATION GOOD CORPORATE GOVERNANCE INDIVIDUAL INVESTORS INDIVIDUALS INFORMATION DISCLOSURE INITIAL PUBLIC OFFERING INSIDER DEALING INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURANCE INTERNATIONAL MARKET INVESTMENT CHOICES INVESTOR CONFIDENCE INVESTOR PROTECTION LATIN AMERICAN LIMITED LIQUIDITY LITIGATION MACROECONOMIC CONDITIONS MANAGERS MANDATORY DISCLOSURE MARKET ACCESS MARKET DEVELOPMENT MARKET ECONOMIES MARKET ECONOMY MARKET REFORMS MARKET SEGMENTATION MARKET SEGMENTS MINORITY INVESTORS NASDAQ NUMBER OF SHAREHOLDERS OFFERINGS PARTIAL PRIVATIZATION PERSONS PORTFOLIO PORTFOLIO MONITORING PRIVATE COMPANIES PRIVATE EQUITY PROFITABILITY PROPERTY RIGHTS PROTECTING INVESTORS PUBLIC COMPANIES PUBLIC COMPANY PUBLIC MARKETS PUBLIC OFFERING PUBLIC OFFERINGS REGISTRATION STATEMENT REGULATORY AUTHORITY REGULATORY BURDEN REGULATORY ENFORCEMENT REGULATORY FRAMEWORK REGULATORY REFORM REGULATORY REGIME RETAIL RETAINED EARNINGS SALE SAVINGS SECURITIES SECURITIES LAWS SECURITIES MARKETS SECURITIES REGULATION SECURITIES REGULATOR SHAREHOLDER VOTING SHAREHOLDERS SIDE EFFECTS SMALL BUSINESS SMALL BUSINESSES SMALL COMPANIES SMALLER COMPANIES SPREAD STATE OWNED ENTERPRISE STATE OWNED ENTERPRISES STATE-OWNED COMPANY STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKETS STOCK PRICES STRATEGIC INVESTOR TAX INCENTIVES TAX RATES TAX REVENUE TAX REVENUES TOTAL MARKET CAPITALIZATION TRANSITION ECONOMIES TRANSPARENCY TURNOVER WAGES |
| spellingShingle |
ACCOUNTING ACQUISITIONS ADVERSE IMPACT ADVERTISING BANKRUPTCY BANKS BENEFICIAL OWNER BONDS CAPITAL GAINS TAXES CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK COLLECTIVE COMMERCIAL TRANSACTIONS COMPANY COMPETITIVE ADVANTAGE CONSUMERS CONTINUOUS DISCLOSURE CONTRACTUAL ARRANGEMENTS CONTROLLING SHAREHOLDER CONTROLLING SHAREHOLDERS CORPORATE GOVERNANCE CORPORATE GOVERNANCE REFORM COST OF CAPITAL DAMAGES DEBT DISCLOSURE REQUIREMENTS DISCLOSURE RULES DISPUTE RESOLUTION DISTRIBUTION OF INCOME DOMESTIC COMPANIES DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC STOCK EXCHANGES ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMICS EMERGING MARKET EMERGING MARKETS EQUITY MARKETS EQUITY OFFERS EXPROPRIATION EXTERNAL FINANCING FAIR FINANCIAL CRISIS FINANCIAL DISCLOSURE FINANCIAL INFORMATION FINANCIAL MARKETS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL STATEMENTS FOREIGN INVESTORS FULL DISCLOSURE GDP GLOBAL MARKETS GLOBALIZATION GOOD CORPORATE GOVERNANCE INDIVIDUAL INVESTORS INDIVIDUALS INFORMATION DISCLOSURE INITIAL PUBLIC OFFERING INSIDER DEALING INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURANCE INTERNATIONAL MARKET INVESTMENT CHOICES INVESTOR CONFIDENCE INVESTOR PROTECTION LATIN AMERICAN LIMITED LIQUIDITY LITIGATION MACROECONOMIC CONDITIONS MANAGERS MANDATORY DISCLOSURE MARKET ACCESS MARKET DEVELOPMENT MARKET ECONOMIES MARKET ECONOMY MARKET REFORMS MARKET SEGMENTATION MARKET SEGMENTS MINORITY INVESTORS NASDAQ NUMBER OF SHAREHOLDERS OFFERINGS PARTIAL PRIVATIZATION PERSONS PORTFOLIO PORTFOLIO MONITORING PRIVATE COMPANIES PRIVATE EQUITY PROFITABILITY PROPERTY RIGHTS PROTECTING INVESTORS PUBLIC COMPANIES PUBLIC COMPANY PUBLIC MARKETS PUBLIC OFFERING PUBLIC OFFERINGS REGISTRATION STATEMENT REGULATORY AUTHORITY REGULATORY BURDEN REGULATORY ENFORCEMENT REGULATORY FRAMEWORK REGULATORY REFORM REGULATORY REGIME RETAIL RETAINED EARNINGS SALE SAVINGS SECURITIES SECURITIES LAWS SECURITIES MARKETS SECURITIES REGULATION SECURITIES REGULATOR SHAREHOLDER VOTING SHAREHOLDERS SIDE EFFECTS SMALL BUSINESS SMALL BUSINESSES SMALL COMPANIES SMALLER COMPANIES SPREAD STATE OWNED ENTERPRISE STATE OWNED ENTERPRISES STATE-OWNED COMPANY STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKETS STOCK PRICES STRATEGIC INVESTOR TAX INCENTIVES TAX RATES TAX REVENUE TAX REVENUES TOTAL MARKET CAPITALIZATION TRANSITION ECONOMIES TRANSPARENCY TURNOVER WAGES Friedman, Felice B. Grose, Claire Promoting Access to Primary Equity Markets : A Legal and Regulatory Approach |
| relation |
Policy Research Working Paper; No. 3892 |
| description |
This paper examines legal and regulatory measures that can be taken to promote access to the primary market in emerging market economies. While capital market development depends on many factors including, primarily, a favorable macroeconomic environment, an appropriately designed and effective legal and regulatory framework can help to encourage market growth and to increase access to finance for all companies, including small- and medium-sized enterprises. In this paper we identify the basic necessities that underpin a regulatory regime that is cost effective and strikes an appropriate balance between, on the one hand, laws and regulations that may be too restrictive to achieve a supply of capital and, on the other, those that may be so relaxed that investors feel that there is an unacceptable level of risk and do not care to venture into the market. We explore the legal foundations for the successful operation of a primary market for securities and identify disclosure and effective monitoring and enforcement as essential elements of legal protection. We then examine different legal and regulatory approaches for improving access to finance. We discuss measures that can be used by traditional stock exchanges to attract smaller enterprises to their lists as well as recent initiatives to create second boards or divide the main board into different market segments. We also discuss different mechanisms for companies to raise funds outside of a formal stock market listing, including private placements and private equity. Finally, we propose some recommendations for a simple legal and regulatory framework that will help promote access to primary equity markets, via both the traditional exchange as well as other alternatives. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Friedman, Felice B. Grose, Claire |
| author_facet |
Friedman, Felice B. Grose, Claire |
| author_sort |
Friedman, Felice B. |
| title |
Promoting Access to Primary Equity Markets : A Legal and Regulatory Approach |
| title_short |
Promoting Access to Primary Equity Markets : A Legal and Regulatory Approach |
| title_full |
Promoting Access to Primary Equity Markets : A Legal and Regulatory Approach |
| title_fullStr |
Promoting Access to Primary Equity Markets : A Legal and Regulatory Approach |
| title_full_unstemmed |
Promoting Access to Primary Equity Markets : A Legal and Regulatory Approach |
| title_sort |
promoting access to primary equity markets : a legal and regulatory approach |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/04/6731299/promoting-access-primary-equity-markets-legal-regulatory-approach http://hdl.handle.net/10986/8713 |
| _version_ |
1764405841689051136 |
| spelling |
okr-10986-87132021-04-23T14:02:40Z Promoting Access to Primary Equity Markets : A Legal and Regulatory Approach Friedman, Felice B. Grose, Claire ACCOUNTING ACQUISITIONS ADVERSE IMPACT ADVERTISING BANKRUPTCY BANKS BENEFICIAL OWNER BONDS CAPITAL GAINS TAXES CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK COLLECTIVE COMMERCIAL TRANSACTIONS COMPANY COMPETITIVE ADVANTAGE CONSUMERS CONTINUOUS DISCLOSURE CONTRACTUAL ARRANGEMENTS CONTROLLING SHAREHOLDER CONTROLLING SHAREHOLDERS CORPORATE GOVERNANCE CORPORATE GOVERNANCE REFORM COST OF CAPITAL DAMAGES DEBT DISCLOSURE REQUIREMENTS DISCLOSURE RULES DISPUTE RESOLUTION DISTRIBUTION OF INCOME DOMESTIC COMPANIES DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC STOCK EXCHANGES ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMICS EMERGING MARKET EMERGING MARKETS EQUITY MARKETS EQUITY OFFERS EXPROPRIATION EXTERNAL FINANCING FAIR FINANCIAL CRISIS FINANCIAL DISCLOSURE FINANCIAL INFORMATION FINANCIAL MARKETS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL STATEMENTS FOREIGN INVESTORS FULL DISCLOSURE GDP GLOBAL MARKETS GLOBALIZATION GOOD CORPORATE GOVERNANCE INDIVIDUAL INVESTORS INDIVIDUALS INFORMATION DISCLOSURE INITIAL PUBLIC OFFERING INSIDER DEALING INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURANCE INTERNATIONAL MARKET INVESTMENT CHOICES INVESTOR CONFIDENCE INVESTOR PROTECTION LATIN AMERICAN LIMITED LIQUIDITY LITIGATION MACROECONOMIC CONDITIONS MANAGERS MANDATORY DISCLOSURE MARKET ACCESS MARKET DEVELOPMENT MARKET ECONOMIES MARKET ECONOMY MARKET REFORMS MARKET SEGMENTATION MARKET SEGMENTS MINORITY INVESTORS NASDAQ NUMBER OF SHAREHOLDERS OFFERINGS PARTIAL PRIVATIZATION PERSONS PORTFOLIO PORTFOLIO MONITORING PRIVATE COMPANIES PRIVATE EQUITY PROFITABILITY PROPERTY RIGHTS PROTECTING INVESTORS PUBLIC COMPANIES PUBLIC COMPANY PUBLIC MARKETS PUBLIC OFFERING PUBLIC OFFERINGS REGISTRATION STATEMENT REGULATORY AUTHORITY REGULATORY BURDEN REGULATORY ENFORCEMENT REGULATORY FRAMEWORK REGULATORY REFORM REGULATORY REGIME RETAIL RETAINED EARNINGS SALE SAVINGS SECURITIES SECURITIES LAWS SECURITIES MARKETS SECURITIES REGULATION SECURITIES REGULATOR SHAREHOLDER VOTING SHAREHOLDERS SIDE EFFECTS SMALL BUSINESS SMALL BUSINESSES SMALL COMPANIES SMALLER COMPANIES SPREAD STATE OWNED ENTERPRISE STATE OWNED ENTERPRISES STATE-OWNED COMPANY STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKETS STOCK PRICES STRATEGIC INVESTOR TAX INCENTIVES TAX RATES TAX REVENUE TAX REVENUES TOTAL MARKET CAPITALIZATION TRANSITION ECONOMIES TRANSPARENCY TURNOVER WAGES This paper examines legal and regulatory measures that can be taken to promote access to the primary market in emerging market economies. While capital market development depends on many factors including, primarily, a favorable macroeconomic environment, an appropriately designed and effective legal and regulatory framework can help to encourage market growth and to increase access to finance for all companies, including small- and medium-sized enterprises. In this paper we identify the basic necessities that underpin a regulatory regime that is cost effective and strikes an appropriate balance between, on the one hand, laws and regulations that may be too restrictive to achieve a supply of capital and, on the other, those that may be so relaxed that investors feel that there is an unacceptable level of risk and do not care to venture into the market. We explore the legal foundations for the successful operation of a primary market for securities and identify disclosure and effective monitoring and enforcement as essential elements of legal protection. We then examine different legal and regulatory approaches for improving access to finance. We discuss measures that can be used by traditional stock exchanges to attract smaller enterprises to their lists as well as recent initiatives to create second boards or divide the main board into different market segments. We also discuss different mechanisms for companies to raise funds outside of a formal stock market listing, including private placements and private equity. Finally, we propose some recommendations for a simple legal and regulatory framework that will help promote access to primary equity markets, via both the traditional exchange as well as other alternatives. 2012-06-21T20:31:54Z 2012-06-21T20:31:54Z 2006-04 http://documents.worldbank.org/curated/en/2006/04/6731299/promoting-access-primary-equity-markets-legal-regulatory-approach http://hdl.handle.net/10986/8713 English Policy Research Working Paper; No. 3892 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 |