The Development of Equity Capital Markets in Transition Economies

This book investigates two issues that have been slowing down the development of equity capital markets in transition economies - slow progress with privatisation and the lack of shareholder rights. Both problems are illustrated with data for the largest publicly traded Russian firms. Furthermore, two theoretical models are developed to offer insights into the nature of both problems. The principal conclusion is that partial privatisation as well as the lack of shareholder rights are likely to be only a temporary phenomenon and both problems are likely to be mitigated as the transition process advances. The book should enhance the understanding of academics as well as policy makers and practitioners of potential pitfalls in fostering the development of equity markets in transition economies as well as developing countries.