Explaining when developing countries liberalize their financial equity markets |
| |
| Institution: | 1. Department of Physics, Earth and Environmental Sciences, University of Siena, Via Laterina, 8, 53100 Siena, Italy;2. Department of Biomedical Sciences for Health, University of Milan, Via L. Mangiagalli, 31, 20133 Milan, Italy;1. USEK Business School, Holy Spirit University of Kaslik (USEK), POB 446, Jounieh, Lebanon;2. Department of Economics, University of Pretoria, Pretoria, South Africa;3. Cardiff Business School, Cardiff University, UK;4. Kent Business School, University of Kent, UK;5. Department of Accountancy, Finance and Economics, Huddersfield Business School, University of Huddersfield, Queensgate, UK |
| |
| Abstract: | This paper is the first to explain when countries opened their financial equity markets and is the first to explain financial liberalization using a large sample of developing countries. We test several novel hypotheses. We find that equity markets are opened earlier in countries that trade more with developed countries and that have more developed financial markets. Equity markets are opened earlier in democracies, especially if the country's leader is a civilian. Our other findings are consistent with the literature, which has found greater financial market openness in countries receiving more FDI, in richer countries, and in democracies. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
