Pricing Shares on a Nascent Market: The Nepal Stock Exchange 1994-96

Stimulated by their ability to facilitate privatization and to attract portfolio inflows, recent literature on less-developed country stock exchanges has focused on relatively well-established emerging markets. Wide international variations in the ratio of market capitalization to GDP, however, conf...

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Bibliographic Details
Published in:World development 1999-06, Vol.27 (6), p.1083-1096
Main Authors: Snowden, P. N, Bijay, K. C
Format: Article
Language:English
Subjects:
Capital market
Developing countries
Economic development
Economic history
Emerging markets
Equity
GDP
Gross Domestic Product
LDCs
Less developed countries
Nepal
Portfolio management
Prices
Privatization
Securities markets
Stock exchange
Stock exchanges
Stock prices
Studies
Citations: Items that this one cites
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Summary:Stimulated by their ability to facilitate privatization and to attract portfolio inflows, recent literature on less-developed country stock exchanges has focused on relatively well-established emerging markets. Wide international variations in the ratio of market capitalization to GDP, however, confirm that an important role for equity markets in economic development is not assured. A study of early equity pricing in Nepal therefore addresses the initial difficulties of establishing a viable exchange. It investigates equity pricing in the absence of a trading history, identifies favored equity characteristics and provides tentative evidence on the market valuation of liquidity before discussing policy inferences.
ISSN:0305-750X
1873-5991
DOI:10.1016/S0305-750X(99)00038-8