Download PDF by Vincent Hunink: Did Perpetua write her prison account?

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20 Information Information is a key determinant of asset prices and should play an important role in primary market development. Investors should be more willing to invest as better information about investments is made available. Conversely, firms may be opposed to information disclosure as it can have a variety of economic costs. To look at the importance of information on primary equity market activity, we examine the correlation between primary market activity and various indicators of informational quality, including accounting standards, and investor protection laws.

The shifts in the country rankings of equity issuers have been dramatic. Two countries are notable for their climb: Mexico and Indonesia. Both countries ranked low in the early 1980s, but were leading equity issuers by the 1990s. The opening of markets in Sri Lanka and Hungary (and privatization-related equity issuance in the latter country) meant that primary equity issuance rose from zero in the early 1980s in each of these countries to a rate of $100 million or more by the 1990s. The top four emerging market equity issuers in the early 1980s - Malaysia, Brazil, Tunisia and Venezuela - all experienced a relative decline in position over time.

5 percent of annual GDP for the countries in the sample. 4 By those standards, the capital raised in domestic primary equity markets is important. Within those global figures, the G4 nations and the four Asian Tigers represent 97 percent of that total, but they also represented more than 85 percent of the total GDP, which still leaves the emerging markets with relatively important primary capital markets. The remainder of this paper looks more closely at the pattern of behavior of primary capital markets in a broad group of countries over the period 198095.

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Did Perpetua write her prison account? by Vincent Hunink


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