The Relationship Between Stock Market Development And The Opacity Index

In this paper, we investigate the relationship between stock market development and the Opacity Index for 2005/2006, 2007/2008, and 2009. The role of financial institutions in promoting economic growth and development is well established. The specific role of the stock market in economic growth and...

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Bibliographic Details
Published in:The international business & economics research journal 2013-08, Vol.12 (9), p.1131
Main Authors: Kamiru, John, McGowan, Jr, Carl B.
Format: Article
Language:English
Subjects:
Accounting
Capital expenditures
Capital markets
Economic development
Economic growth
Economic indicators
Financial institutions
GDP
Gross Domestic Product
International business
Securities markets
Stock exchanges
Studies
Systems development
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Summary:In this paper, we investigate the relationship between stock market development and the Opacity Index for 2005/2006, 2007/2008, and 2009. The role of financial institutions in promoting economic growth and development is well established. The specific role of the stock market in economic growth and development is to provide capital to entrepreneurs and growing companies and to direct capital to companies that provide the highest rate of return. The Opacity Index is a measure of transparency for an economy and measures the degree of transparency in an economy. We find a statistically significant relationship between the Opacity Index and the ratio of stock market capitalization divided by GDP for a sample of 45 countries for which the Opacity Index is provided.
ISSN:1535-0754
2157-9393
DOI:10.19030/iber.v12i9.8058