The emergence, integration and future evolution of Latin American equity markets: 1990-2000

Why have emerging equity markets grown so rapidly since 1990? This thesis examines the link between the integration of emerging equity markets and the expansion of these markets in Latin America. The first chapter provides a model for how foreign equity investment through international listings can transform a local equity market from an equilibrium of low liquidity and market capitalization to a market with high liquidity and self-sustaining growth of actively traded equity. The option of international listing alters the incentives of local companies by improving liquidity, reducing the covariance risk and enhancing the provision of information on these companies, thereby lowering the cost of capital and increasing the number of companies listed in domestic and foreign markets. Welfare unambiguously improves from the perspective of the firm and the investor.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Economics

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2011

Author dc:creator

• Hargis, Kent William

Contributors dc:contributor

• Baer, Werner W.

• Economics, Finance

Statement dc:rights

• Copyright 1995 Hargis, Kent William

Language dc:language

eng

Identifier

AAI9624357
(UMI)AAI9624357

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/19474