By bringing together economists from less developed countries with researchers from the U.S. and Western Europe, the essays in this collection break new ground by focusing on the unique problems of capital markets in the developing world.
Business finance in less developed economies cannot be analyzed or measured by the approaches utilized in countries, such as the United States and Great Britain, where stock markets can assess worth and channel capital with reasonable accuracy. Most economic theory dealing with business finance has been developed in precisely this latter environment. By bringing together economists from less developed countries with researchers from the United States and Western Europe, these essays break new ground by focusing on the unique problems of capital markets in the developing world.
The problems of organizing securities markets and such capital market institutions as mutual funds are examined. The sources of financial capital and the interaction of state credit policies and the investment decisions and practices of the private sector are also analyzed. Together these essays provide developmental and business economists with provocative questions and will be of concern to all involved with economic growth in the less developed world.
Introduction Business Finance in Less-Developed Capital Markets: An Emerging Field of Study by Klaus P. Fischer and George J. Papaioannou Development of Capital Markets Venture Capital: Is It Appropriate for Developing Countries? by Richard Kitchen Problems of Orthodox Formal Capital Markets in Developing Countries, with Particular Reference to Nigeria by Ade T. Ojo Securities Market Development and Economic Growth by P. C. Kumar and George Tsetsekos Mutual Funds in Developing Capital Markets: A Critical Evaluation of Turkish Experience by Yaman Asikoglou, Sevil Kutay, and Ozer Ertuna Discussants' Comments: Frank Tuzzolino, Asmo. P. Palasvirta, and Demir Yener Risk and Return in Securities Markets Chinese New Year, Common Stock Purchasing, and Cumulative Excess Returns: Is the Taiwanese Stock Market Informationally Inefficient? by C. F. Lee, Gili Yen, and Chingfu Chang Reactions of the Taiwanese Stock Market to Trade Talks with the U.S. by Gili Yen and Philip Chang Mutual Fund Performance in the Brazilian Stock Market: 1984-1985 by Antonio Zoratto Sanvicente and Everaldo Guedes Franca Market Efficiency (Weak-Form) Tests of the Malaysian Stock Exchange by Othman Yong Discussants' Comments: Hugh Haworth, Mahendra R. Gujarathi, Martin Lawrence, and G. Wenchi Kao Asset Management Financial Management and Goal Programming in Imperfect Capital Markets by Edgar Ortiz and Graciela Bueno Capital Budgeting in Countries with Less-Developed Capital Markets: Financial and Ethical Issues by Marjorie T. Stanley The Joint Venture Game in Poland by Aleksander Sulejewicz Discussants' Comments: Linda Allen Credit and Financing Policy Macro Shocks and Industrial Portfolio Responses: An Econometric Model for LDCs by James Tybout and Taeho Bark Optimal Corporate Debt Financing and Real Investment Decisions under Controlled Banking Systems by Mansoor Dailami Interest Rate Reform and Private Investment Behavior in Developing Countries: Evidence from Peru by Uwe Corsepius Discussants' Comments: Ashok Vora, C. F. Lee, and Esmeralda Lyn Theory of the Firm Enterprise Governance and Growth: Notes on the Theory of the Firm in Less-Developed Capital Markets by Stavros B. Thomadakis Financial Management in Public Enterprises in India by V. N. Hukku Discussant's Comments: Lemma W. Senbet International Capital and Enterprise Incentives Financial Contracting between Non-OPEC Developing Countries and Multinationals for Oil Extraction by Daniel D. Tzang Investment Incentives and Renegotiation in International Lending by George C. Anayiotos Expectations of Devaluation, the Real Rate of Interest and the Private Sector in a DualCurrency Economy by Graciana del Castillo Discussants' Comments: Jeffrey Weiss, Ishac Diwan, and Sarath Abeysekera Panel Discussion: Research Directions Research in Business Finance: A Mexican Perspective by Edgar Ortiz Research Directions: A Theoretical Framework by Lemma W. Senbet Research Directions: International Investments by Vihang Errunza