A well-developed capital market consists of equity and bond market. A sound bond market with a significant role played by the Government bond market segment is considered to be important for an efficient capital market and raising for developmental ventures. Bonds are issued and sold to the public for funds. Bonds are interest bearing debt certificates. This study is conducted in order to analyze the impact of liquidity on return of government securities in the context of Indian bond market.
A previously unknown pricing anomaly existed for a few years in the late 1840s in the British government bond market, in which the larger and more liquid of two very large bonds was underpriced. None of the published mechanisms explains this phenomenon. It may be related to another pricing anomaly that existed for much of the nineteenth century in which terminable annuities were significantly underpriced relative to so-called ‘perpetual’ annuities that dominated the government bond market. The reasons for these mispricings seem to lie in the early Victorian culture, since the basic economic incentives as well as laws and institutions were essentially the familiar modern ones. This provides new perspectives on the origins and nature of modern corporate capitalism.
Based on the panel smooth transition regression (PSTR) model, this paper empirically analyzes the relationship between Chinese local government’s bond financing and economic growth, with the quarterly panel data of bonds issued by local governments and their investment and financing platform companies in the open market from 2008 to 2018 as samples. The research shows that there is a gradual non-linear relationship between local government bond market financing and economic growth in China. With the increase of the scale of local government bond market financing in China, the effect of bond market financing on economic growth will gradually decline and have a negative effect. This result means that for developing countries like China, it is not advisable to rely solely on government investment to drive economic growth.
This paper explores the impact of corporate governance reforms and changing ownership patterns of core public sector enterprises. A number of reforms were introduced by the Government of India in 1991, and intensified in 2004 with the aim of improving efficiency and financial performance across state owned enterprises. The core state enterprises provide a unique opportunity to consider two aspects of the reforms. First, did the reforms have an impact, and second, is there a distinguishable difference between wholly government owned and partially-public shareholding enterprises? The public listed companies provide a suitable reference point for comparison. A comprehensive dataset of 123 SOEs and matching listed public companies for 10 years was collected for the study. A regression approach is adopted with agency cost as the dependant variable and several corporation-specific governance variables. Size and industry are the independent variables. The findings of the study indicate that the agency costs for mixed ownership models tend to be lower than those of the concentrated state-owned firms because they operate in an open market with the market facing the regulatory framework of a competitive environment.
The article reveals the main current trends of the government bond market in the Russian Federation. Various factors that influence the state bond market were studied. External factors included geopolitical risks, rating actions, monetary policy of world Central banks, and the dynamics of oil prices. The main internal factors were: lower inflation, the Bank of Russia’s monetary policy, the return of non–residents to Russian ruble debt, the strengthening of the ruble, the Bank of Russia’s policy in terms of banking regulation, and the flexible policy of initial placement of Federal loan bonds. In 2019, external factors did not have a primary impact on the Russian government securities market, but they determined the General background of investor relations. The market was largely influenced by internal factors.
A Study on Impact of Liquidity on Returns of Four Government Bonds in the Context of Indian Bond Market