 IntroductionRahul Dhumale Chapter 1 in Excess Cash Flow, 2003, pp 1-12 from Palgrave Macmillan Abstract: Abstract Economic studies which examine the financing patterns of firms, especially in emerging economies, seldom consider the market environment in which they operate. The most recent Asian financial crisis and its exposure of institutional failures in the context of financial sector liberalisation shows that these market conditions are vital. At a micro-economic level, free market economies function through institutions and corporate governance mechanisms including but not limited to well-defined bankruptcy procedures, disclosure norms, an effective market for corporate control, etc. — all of which reduce information imperfections and facilitate transparency and accountability. When these institutional conditions fail, market problems arise including adverse selection and moral hazard behaviour. Furthermore, the lack of a sound institutional and legal framework compounds these problems, with important implications for the corporate governance structures of firms. An examination of the financing choices of these firms can help to reveal the source of some of these institutional failures. Keywords: Stock Market; Corporate Governance; Capital Market; Abnormal Return; Mutual Fund (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50951-1_1 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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