The Politics of Equity Finance in Emerging Markets

The Politics of Equity Finance in Emerging Markets

by Kathryn C. Lavelle
     
 

ISBN-10: 0195174097

ISBN-13: 9780195174090

Pub. Date: 10/14/2004

Publisher: Oxford University Press

Emerging market stock issuance relative to GDP rose in the late twentieth century to levels that roughly matched that of advanced, industrial markets. Nonetheless, the connection between owning shares of emerging market stock and the ability to influence the management of these firms remains fundamentally different from the analogous institutional connection that

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Overview

Emerging market stock issuance relative to GDP rose in the late twentieth century to levels that roughly matched that of advanced, industrial markets. Nonetheless, the connection between owning shares of emerging market stock and the ability to influence the management of these firms remains fundamentally different from the analogous institutional connection that has evolved in industrial markets. The reasons for the differences in emerging markets are both historical and political in nature. That is, local equity markets have had the objective of providing for some degree of local ownership and control of large economic entities since the late nineteenth century. However, local markets have operated under different global political structures since that time, ranging from imperialism, to world wars, to sovereign developmental states, to neo-liberal states. Shares issued under these different structures have been reconfigured over time, resulting in a lack of convergence along either the Anglo-American or Continental models of corporate governance. The author uses a political science paradigm to explain the growth of emerging equity markets. She departs from conventional economic explanations and examines politics at the micro-level of large issues of emerging market stock. The second half of the book presents case studies dealing with emerging market countries in Latin America, Asia, Russia and Eastern Europe, Africa and the Middle East. The case studies connect the regional, state, and firm levels to detail the multiple ownership and control arrangements, and to dispel the notion that mere quantitative growth of these markets will lead to a convergence in financial institutional structures along the lines of the industrial core of the world economy.

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Product Details

ISBN-13:
9780195174090
Publisher:
Oxford University Press
Publication date:
10/14/2004
Pages:
296
Product dimensions:
9.30(w) x 6.30(h) x 0.90(d)

Table of Contents

List of Illustrations
List of Tables
Preface
Introduction
1. Politics and the Extension of Equity Finance to Emerging Markets
Section I: Equity Finance in Historical Perspective
2. Financing Joint-Stock Companies in the Colonial Era
3. New States, New State Involvement
4. Globalization without Integration: International Considerations
5. Privatization and Share Supply in Emerging Markets
Section II: Case Studies of Stock Exchanges in Regional Perspective
Section Introduction
6. Latin America
7. Asia and the Pacific
8. Russia and East Europe
9. Africa and the Middle East
Section III: Conclusion
10. Stock Exchanges in the Global Political Economy
Appendixes
Index
Illustrations
Figures
Developed countries' stock of FDI in developing countries by host region
1. Market capitalization of EM firms listed in London
2. Market capitalization of EM firms listed in New York
3. International privatizations as a percentage of international equities offered
4. Equity issued as a percentage of GDP
5. Growth in market capitalization of emerging markets
6. Growth in number of listed domestic companies in emerging markets
Tables
1. Appearance of organized equity markets
2. Announced international equity issues
3. Summary of stock exchanges established in the imperial era
4. Average annual growth rates of flows of direct foreign investment from developed countries to developing countries, 1960-1978
5. Russian and Eastern European methods of privatization
6. Privatized company stock transactions in Chile
7. Summary of Latin American cases examined
8. Summary of Asian cases examined
9. Growth of the Budapest stock exchange
10. Growth of the Warsaw stock exchange
11. Summary of Russian and East European cases examined
12. Summary of African and Middle Eastern cases examined

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