An analysis of Russian equity capital markets
Name
808368141-MIT.pdf
Description
Full printable version
Size
7.02 MB
Format
Adobe PDF
Checksum (MD5)
8bf394109c2cba8a31e48b8d538ceb22
Author(s)
Harwood, Catherine F. (Catherine Freda)
Advisor(s)
Roberto Rigobon.
Date Issued
2012
Publisher
Massachusetts Institute of Technology
Abstract
This paper begins with the assumption that stock market development has a positive and causal relationship with long run economic growth. It thus takes the view that developing the equity market is an important policy objective for the Russian government. Through a series of interviews, data collection and a review of the literature, it is found that the Russian equity market is rather underdeveloped as measured by its liquidity, free float capitalization and industry concentration. In order to stimulate the development of the market, the paper focuses on the attraction of long term capital to sustainably increase the size and liquidity of the market and reduce volatility. A set of viable reforms are suggested to achieve this goal including: 1) the upgrade of market infrastructure primarily through the creation of a Central Settlement Depository and relaxation of prefunding requirements, 2) corporate governance improvements through a reduced government participation, increased board independence and the introduction of a minimum free float requirement and 3) Incentives for the pooling of long term domestic capital, in particular through the diversification of risk using cross-country swaps.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2012.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. [49]-[57]).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
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