State capitalism and capital markets: Comparing securities exchanges in emerging markets

Finance plays a major role in discussions about state capitalism in emerging markets, but the focus has so far been on banks. Capital markets have been neglected. Moreover, findings from the growing literature on financialization in emerging markets indicate that in some cases there is increasing state involvement in the development and functioning of capital markets. Hence, the relationship between the state and finance in these economies may be fundamentally different from the picture provided by liberal Western-centric perspectives. Instead of looking at capital markets as uniform entities, we propose to analyse them as variegated – while characterized by common financialization processes, they can be informed by different institutional logics, leading to very different market dynamics and outcomes. We explore to what extent these differences exist and how state-capitalist economies facilitate capital market development. Our comparative institutional analysis of securities exchanges as central parts of capital markets in six increasingly financialized emerging market economies – Brazil, China, India, Russia, South Africa and South Korea – focuses on the degree to which capital markets are integrated into state-capitalist institutions. Instead of mere platforms on which market transactions take place, we analyse exchanges as powerful actors which actively shape capital markets. While in most advanced economies exchanges are situated within an institutional setting informed by neoliberal institutional logic, we demonstrate that exchanges in emerging markets often organize capital markets to facilitate state objectives.

Antecedents of Dividend Payout Among Listed Non-Financial Companies listed in Nairobi Securities Exchanges, Kenya

: The objective of this study was to establish the antecedents of dividend payout among listed non-financial Companies listed in Nairobi Securities Exchanges, Kenya, with four specific objectives; to establish the effect of profitability, capital expenditure, leverage and liquidity on dividend pay-out of listed non-financial companies in NSE. The study was founded on Modigliani and miller hypothesis, signalling hypothesis, birds in hand fallacy, Agency and clientele policy. Using correlation research design, the study examined the antecedents of dividend pay-out of listed non-financial companies listed in Kenya for the period 2008 to 2019. The result showed a positive and significant relationship between dividend pay-out ratio and profitability, liquidity and leverage. It also shows negative association between dividend pay-out and capital expenditure. It was concluded that capital expenditure significantly influences dividend paid out negatively. Interest payment for long term debt takes priority as a charge on the profit made by the company. An improvement of a company's liquidity would lead to a better compensation to shareholder inform of dividend distributions. Listed companies therefore are expected to pay dividends when the companies are performing well because otherwise shareholders may question the proceeding of the announced profit or results to signaling effect. Listed companies should arrange the financing of capital expenditure so as ensure shareholder remains at an advantage and enable the company to recover its cost on capital and expected returns.

The Disclosure Regimen of the Federal Securities Laws

This chapter focuses on the disclosure framework of the federal securities laws. It explores the benefits as well as drawbacks of the current regimen and recommends measures that should be implemented to enhance its efficacy. Subjects addressed in this chapter include the focus of the securities laws on adequate disclosure rather than substantive fairness, the concept of materiality, the mandatory disclosure framework, the integrated disclosure system, the SEC’s dismantling of the mandatory disclosure framework in certain contexts, and the disclosure obligations placed upon publicly-held companies by the national securities exchanges. Upon analysis, significant gaps and drawbacks exist in this framework that should be remedied. The chapter thereupon proffers adaptable solutions that should meaningfully improve the disclosure regimen. Implementing these measures, including the requirement that companies (absent a meritorious business justification) promptly and adequately disclose all material information to the securities markets and investors, should enhance both market efficiency and investor protection.

Part VII International Securities, Including Markets and Clearing Systems, 22 US Equity Market Structure

This chapter provides an overview of the laws applicable to the markets and regulated market participants in the US. It recounts how US securities markets have evolved significantly over time due to advancements in technology and intervening efforts by lawmakers and securities regulators. It also notes the current US system of securities regulation, which was formulated in the early 1930s by the US Congress in an attempt to restore confidence in the financial system following a market collapse, bank failures, and widespread scandals. This chapter looks at the laws that directly affect the day—to—day operations of securities exchanges and equity markets in the US and are enforced by the US Securities and Exchange Commission (SEC). It also mentions the Securities Exchange Act of 1934 (Exchange Act) as the principal law that governs the US equity markets.

Same same, but different: Varieties of capital markets, Chinese state capitalism and the global financial order

Since 2009, China’s capital markets have developed and internationalized to an unprecedented degree, which has contributed to a lot of debates on China’s rise and its implications for the global financial order. Contributing to these debates, this article analyses the development of capital markets in China and their integration into global finance between 2009 and 2019, focusing on three aspects: how Chinese capital markets are developing domestically; how they are integrating with global markets; and how Chinese capital markets are internationalizing, i.e. expanding abroad. Thereby, the article analyses the crucial role of securities exchanges who as organizers of capital markets are powerful actors that exercise considerable influence over these markets and their development. This empirical investigation reveals that while they share some characteristics with ‘global’ capital markets, Chinese capital markets function quite differently. The article argues that China’s state-owned exchanges facilitate the development of state-capitalist capital markets – capital markets that follow an institutional logic derived from China’s state-capitalist economic system. Rather than giving in to a neoliberal rulebook, China’s capital markets represent an alternative to, resist and challenge the norms, principles and procedures of the contemporary global financial order. While different capital markets share some characteristics, they are institutionally embedded, and these institutional settings facilitate different institutional logics that underpin and inform the functioning of markets. Instead of viewing capital markets as homogeneous entities, the article therefore proposes to investigate a ‘varieties of capital markets’ that are shaped by different institutional logics.

Reader Comment Digest Through Latent-Stock Market

Examine the monetary information for causing forecasts in securities exchanges by utilizing enormous information to examine and prescribe the client interest in different classification financial exchanges dependent on web media. At the point when a noteworthy occasion happens, numerous news stories from various newsagents frequently report it. Additionally, these newsagents likewise give stages to their perusers to compose remarks communicating their perspectives or comprehension. Through processing these peruser remarks, we can pick up bits of knowledge into the responses, proposals, individual encounters, or popular sentiments regarding the developing occasion. Be that as it may, these peruser remarks from various sources are frequently quickly gathered bringing about a huge volume. It gets hard to physically break down these remarks. Right now, propose a system that can process per user remarks consequently through inert occasion features and news particularity. An occasion feature alludes to the part of the occasion worried by numerous perusers. In particular, a portion of the peruser remarks, in spite of originating from various sources, talk about a specific aspect of the occasion. Such features give a compelling way to sort out news remarks in a worldwide way. Then again, a few remarks talk about the particular subject of the relating news story. These particular themes show the particular focal point of perusers on the bit of news locally. Such peruser remarks digest in various granularities encourages more profound comprehension of these colossal remarks. To accomplish the above alluring objective of processing peruser remarks, we propose an unaided model called EFNS which is equipped for catching the multifaceted fine-grained relationship among occasions, news, and remarks. We additionally build up a multiplicative-update strategy to derive the parameters and demonstrate the intermingling of our calculation. Our system can likewise picture peruser remarks as indicated by the relationship with idle occasion aspects and the level of news particularity. Test results show that our proposed EFNS model can give a successful method to process news peruser remarks and beat the best in class strategy.

The role of the Federation of European Securities Exchanges in regulating the EU securities market

The article analyzes the economic basis of the functioning of the FESE with the purpose of determining its features and role in regulating the EU securities market.