Rapid economic growth in China and India has attracted attention of many researchers, focusing on various social and economic factors underlying the success of these countries. One of the key components of country’s economy is financial system which consists of segments such as banking sector and equity market. The topic of initial public offerings (IPOs), one of the corporate financing sources, involving raising funds through equity markets and the role they play in the economic growth processes (especially in emerging economies), has not been yet, however, studied in detail. This paper includes the outline of theoretical arguments concerning the primary and secondary economic functions of stock markets and IPOs. After describing the theories and the results of selected research, an empirical study concerning IPOs in China and India from 2008 to 2011 is presented. Additional aspect outlined is the issuance of depositary receipts by Chinese and Indian companies. The findings of the study show that IPOs had some significant impact on Chinese economy. Moreover, their value and structure reflected both Chinese position in global economy and processes within the country. In India, the role of IPOs for investment funding and stock market development was low compared with country’s economic potential
Authors
Additional information
- Category
- Publikacja w czasopiśmie
- Type
- publikacja w in. zagranicznym czasopiśmie naukowym (tylko język obcy)
- Language
- angielski
- Publication year
- 2013
