search query: @indexterm CAPITAL MARKETS / total: 931
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| Author: | Kogut, B. Spicer, A. |
| Title: | Capital market development and mass privatization are logical contradictions: lessons from Russia and the Czech Republic |
| Journal: | Industrial and Corporate Change
2002 : FEB, VOL. 11:1, p. 1-38 |
| Index terms: | CAPITAL MARKETS DEVELOPMENT PRIVATIZATION RUSSIA CZECH REPUBLIC |
| Language: | eng |
| Abstract: | The introduction of mass privatization policies in Russia and the Czech Republic depended on the creation of impersonal capital markets to finance the needs of privatized companies and to provide a secondary market for the trading of securities. The absence of financial markets created systematic pressures to move assets by illegal or non-transparent means to users who value them more. Privatization created the incentives to destroy the financial markets critical to its success. A comparative case analysis of post-privatization market formation in both these countries demonstrates that the functional necessity for these markets does not engender their own creation. In the absence of institutional mechanisms of state regulation and trust, markets become arenas for political contests and economic manipulation. |
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