BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 14/2006:
A castle built on sand: The effects of mass privatization on stock market creation in transition economies
Zuzana Fungacova ()
and Jan Hanousek
Abstract: This paper deals with the relationship between mass
privatization and stock market development in transition economies. The
link is investigated empirically using a panel of data that includes most
transition countries. Our results confirm the hypothesis that mass
privatization exerted a negative influence on stock market functioning over
the short and medium term. Further, it appears that stock markets in
countries with mass privatization were initially perceived as mere
byproducts of the privatization process. Such stock markets typically not
only failed in their core mission of providing capital for the corporate
sector, but generated negative investor sentiment and did little to
catalyze economic growth.
Keywords: privatization; mass privatization; emerging stock markets; stock market; (follow links to similar papers)
JEL-Codes: G15; G28; P34; (follow links to similar papers)
31 pages, October 26, 2006
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
dp1406.pdf 
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Päivi Määttä ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
