Is investment cash-flow sensitivity affected by a country’s capital market imperfection? We take 42 countries as our sample and collect six imperfect capital market measures (ICAM), ie., the stock market capitalization ratio, number of publicly-listed firm, stock turnover ratio, bank loan ratio, long-term debt ratio and the interest spread. Using a two-step approach, negative relationships betw...

We study trends and drivers of long-run stock market growth in 17 advanced economies. Between 1870 the 1980s, capitalization grew line with GDP. But over subsequent decades, an unprecedented expansion saw cap to GDP ratios triple remain persistently high. While most historical was driven by issuances, this recent fueled rising equity prices. show that key driver structural break a profit shift ...

This study is poised to critically analyze the impact of economic recovery management on market capitalization in Nigeria. The specific objectives include: examining effect Gross Domestic Product (GDP) growth rate capitalization, determining influence Inflation and assessing Exchange capitalization. To achieve objective study, ex-post facto research design was adopted. researcher used secondary...

Technological innovations such as high frequency trading systems (HFT) and algorithmic trading systems have changed financial markets. We discuss technological and economic aspects of HFT and find that HFT have a major impact on all aspects of the internal market structure of exchanges. We use market quality measures on a unique dataset provided by NASDAQ in order to analyze the contribution of...

The textile industry is the most important sector in Pakistan’s economy. Based on the availability of raw cotton, the industry provides the largest employment (38% of the total employment) and is also its largest foreign exchange earner. It contributes 68% of total exports, 46% of total manufacturing, 8.5% of total GDP, 31% of total investment and 12% of total market capitalization. Over the ye...

We develop an equilibrium model in which exchange rates, stock prices and capital flows are jointly determined under incomplete forex risk trading. Incomplete hedging of forex risk, documented for U.S. global mutual funds, has three important implications: 1) exchange rates are almost as volatile as equity prices when the forex liquidity supply is not infinitely price elastic; 2) higher returns...