Economics at your fingertips  

Pension reform, institutional investors’ growth and stock market development in the developing countries: does it function?

Aneta Hryckiewicz

No 67, NBP Working Papers from Narodowy Bank Polski, Economic Research Department

Abstract: In this paper, we evaluate an empirical link between recent institutional assets’ growth, institutional behaviour and stock market performance in the developing countries. Using the GMM technique on the panel of eight Central and Eastern European (CEE) developing countries over the period of 1995-2006, our results indicate that institutional development exerts a robust and significant impact on the securities markets’ growth in the developing countries. In particular, we find that institutional investors contribute to the greater activity of the emerging capital markets and this effect is a result of higher demand for the local securities induced by these institutions. In addition, in countries where the institutional investors actively participate in the corporate governance, their presence possibly reduces the cost of capital for firms and also positively influences the stock market capitalization. Our findings suggest that the pension reform has contributed significantly to the institutional development and stock market growth in the CEE countries.

Keywords: capital market development; capital market reforms; financial structure; institutional investors; pension reform (search for similar items in EconPapers)
JEL-codes: G18 G22 G23 O16 (search for similar items in EconPapers)
Pages: 36
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in NBP Working Papers from Narodowy Bank Polski, Economic Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Zbigniew Polański ().

Page updated 2020-10-24
Handle: RePEc:nbp:nbpmis:67