Erschienen in:CERGE-EI Working Paper Series ; No. 43
Umfang:
1 Online-Ressource (51 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1558124
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 1, 1993 erstellt
Beschreibung:
The presence of strong and dynamic capital markets is vital for the inflow of foreign capital and will help domestic companies in seeking additional resources in the form of new equity. The purpose of this paper is to review the development of the capital markets in Central Europe and to identify the major outstanding issues in the link between capital markets and foreign investments. Part I discusses the institutional features of capital markets, as well as their liquidity that affects the entry of foreign investors. Successful privatization and macroeconomic performance also affect the activities on capital markets. The bulk of the report covers the Czech Republic, but also included are Slovakia, Hungary and Poland. Part I reviews the two major institutions of the nonbanking financial sector--investment funds and the stock market, respectively. The main issues of the stock market and the operation of investment funds including regulations, supervision and other institutional features are identified. Part II is divided into three sections and describes the economic factors which are conducive to the creation of capital markets. These factors constitute economic pressure to establish capital markets in the region and are discussed in the first section. The next section identifies the main issues which will be inhibiting the expansion of the capital markets. The last section specifies the main conditions for a more effective functioning of capital markets and offers some policy conclusions