Latin American Capital Markets

More documents

Recommendations

Info

412 HANNESTAKACS AND KINGA KORCSMAROSnance do not have many real choices. Domestic markets generally offer the best environmentfor raising capital. The establishment of a pan-European supervisory andregulatory body for stock exchanges would be a first step toward their much-neededconsolidation, followed by the harmonized set of trading rules for all markets and afully integrated trading, clearing, and settlement system.The lessons drawn from the European experience and the conclusions of thechapter are relevant for emerging Latin American and Caribbean economies. Underdevelopedstock markets in many countries, specifically secondary markets for SMEs,often limit their ability to be a major source of SME financing. Regulatory requirementscan be somewhat complicated or sometimes inappropriate for small companies.Furthermore, they often result in costs that could be onerous for SMEs. In general,to enhance capital market financing of SMEs, some reform of the regulatoryrequirements pertinent to capital markets must be considered to make them morerelevant for SMEs.Lessons can also be drawn from the venture funds market Comparing theventure capital markets in Europe and the United States, it is evident that the fundraisingprocesses are quite different.The actual amount involved and the size of the fundsseem to be much higher in the United States. Europe raises annually about €20 billion,compared with $84 billion in the United States. It is also clear that U.S. investorshave a much greater opportunity to IPO their investment than do their Europeancounterparts or other investors in countries with less well-developed capital markets.This naturally has a strong effect on SME finance as a whole and encourages the recyclingof funds into new investments. This component, along with a simpler regulatoryframework facilitates and enhances the development and functioning of private equityand venture capital markets and thus SME access to capital. Many countries are currentlyreviewing the regulations that govern their private equity and venture capitalmarkets and are considering loosening their restrictions. A good starting point wouldbe for governments to seek an appropriate and healthy balance between the interestof investors and that of SMEs seeking finance.The chapter has indicated that there is evidence that SMEs face major barriersto finance in general and capital markets specifically. Clearly, the timing of stockmarket development for SMEs is the crucial issue for making the traditional stock exchangemore relevant for SMEs. In this respect, specific actions to help increase SMEaccess to financing should be tailored to SME needs and could include harmonizingmeasures to improve the structural, economic, but most importantly regulatory conditionsfor the participation of financial intermediaries, issuers, and private and institutionalinvestors.This would have at some stage the added positive outcome of mak-Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub
ACCESS TO FINANCING FOR SMALL AND MEDIUM ENTERPRISES 413ing many local capital markets more relevant and able to attain their true potential toserve those enterprises that are at a stage to access risk capital.BibliographyDavis, Stephen J.John Haltiwanger, and Scott Schuh. 1993. Small Business and Job Creation:Dissecting the Myth and Reassessing the Facts. Working Paper 4492. NationalBureau of Economic Research, Cambridge, Mass. (October).Dubocage, E. 2000. Financing Innovation by Venture Capital in Europe and in the USA: AComparative and Sectoral Approach. Paris (France):TSER.European Commission. 1996. Recommendation. Official journal of Law 107. Brussels(Belgium): European Commission (April 3).. 1998. 3rd Annual Report on Small and Medium Enterprises. Brussels (Belgium):European Commission.European Observatory for SMEs. 2000. Sixth Annual Report 2000, Executive Summary.Luxembourg (Belgium): European Observatory for SMEs.Grant Thornton. 2002. European New Markets Guide 2002. London (United Kingdom):Grant Thornton.Hallberg, K. 2000. A Market-Oriented Strategy for Small and Medium-Scale Enterprises.Washington, D.C.: World Bank and International Finance Corporation.Haltiwanger; John. 1999. Job Creation and Destruction: Cyclical Dynamics. In Acs Zoltan,Bo Carlsson, and Charlie Karlsson, eds., Entrepreneurship, Small and Medium-SizedEnterprises, and the Macroeconomy. New York Cambridge University Press.OECD. 2000. Small and Medium Enterprise Outlook. Paris (France): OECD.Schulman, Michael Ashley. 1999. Small and Medium Size Business Markets. An FIBVWorking Committee Focus Group Study. Paris (France): International Federation ofStock Exchanges.Sherman, Andrew J. 2000. Raising Capital. Get the Money You Need to Grow Your Business.New York KiplingerYli-Renko, Helena, and Michael Hay. 1999. European Venture Capital. An Overview. InWilliam D. Bygrave, Michael Hay, and Jos B. Peeters, eds., The Venture CapitalHandbook. Great Britain: Pearson Education Ltd.Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub
Page 1 and 2:
Copyright © by the Inter-American
Page 3 and 4:
FOCUS ON CAPITALNew Approaches to D
Page 5 and 6:
ContentsForewordAcknowledgmentsAbou
Page 7 and 8:
ForewordDuring the past two decades
Page 10 and 11:
This page intentionally left blankC
Page 12:
xFOCUS ON CAPITALlyst with Freddie
Page 15 and 16:
ABOUTTHE AUTHORS xiiiDerek West is
Page 18 and 19:
xviFOCUS ON CAPITALLocal capital ma
Page 20 and 21:
xviiiFOCUS ON CAPITALTable IFinanci
Page 22 and 23:
xxFOCUS ON CAPITALto investors to p
Page 24 and 25:
xxii FOCUS ON CAPITALAlthough deriv
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
4 KENROY DOWERS, FELIPE GOMEZ-ACEBO
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
10 KENROY DOWERS, FELIPE GOMEZ-ACEB
Page 38 and 39:
Page 40:
Page 43 and 44:
DEVELOPING A STRATEGY FOR REFORMING
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
PART IIFACTORS AFFECTINGTHE DEVELOP
Page 63 and 64:
•CHAPTER 2Globalization,Technolog
Page 65 and 66:
GLOBALIZATION.TECHNOLOGY AND REGULA
Page 67 and 68:
GLOBALIZATION.TECHNOLOGX AND REGULA
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
GLOBALIZATION.TECHNOLOGY; AND REGUL
Page 77 and 78:
GLOBALIZATION.TECHNOLOGY; AND REGUL
Page 79 and 80:
GLOBALIZATION.TECHNOLOGY, AND REGUL
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
•CHAPTER 3Internet Technology and
Page 93 and 94:
INTERNETTECHNOLOGY AND THE DEVELOPM
Page 95 and 96:
INTERNET TECHNOLOGY AND THE DEVELOP
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
INTERNET TECHNOLOGY AND THE DEVELOP
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
INTERNETTECHNOLOGY ANDTHE DEVELOPME
Page 117 and 118:
CHAPTER 4The Impact of the Macroeco
Page 119 and 120:
THE IMPACT OF THE MACROECONOMIC ENV
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
CHAPTER 5Institutional Investorsand
Page 147 and 148:
INSTITUTIONAL INVESTORS AND CAPITAL
Page 149 and 150:
Page 151 and 152:
United KingdomPercentInsurance comp
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
PART IIIISSUES IN THE IMPLEMENTATIO
Page 185 and 186:
CHAPTER 6Promoting Regional Capital
Page 187 and 188:
PROMOTING REGIONAL CAPITAL MARKET I
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
^CHAPTER 7Accounting andAuditing St
Page 241 and 242:
ACCOUNTING AND AUDITING STANDARDS 2
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Puerto Rico Colegio de Contadores P
Page 255 and 256:
Page 257 and 258:
(Table continues on next page.)Copy
Page 259 and 260:
Financial statement formats Specifi
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
CHAPTER 8Enhancing Market Infrastru
Page 267 and 268:
ENHANCING MARKET INFRASTRUCTURE IN
Page 269 and 270:
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
Page 281 and 282:
Page 283 and 284:
Page 285 and 286:
Page 287 and 288:
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
•CHAPTER 9Demutualization of Exch
Page 297 and 298:
DEMUTUALIZATION OF EXCHANGES 271int
Page 299 and 300:
DEMUTUALIZATION OF EXCHANGES 273and
Page 301 and 302:
DEMUTUALIZATION OF EXCHANGES 275as
Page 303 and 304:
DEMUTUALIZATION OF EXCHANGES 277wou
Page 305 and 306:
DEMUTUALIZATION OF EXCHANGES 279is
Page 307 and 308:
DEMUTUALIZATION OF EXCHANGES 281tha
Page 309 and 310:
DEMUTUALIZATION OF EXCHANGES 283sec
Page 311 and 312:
DEMUTUALIZATION OF EXCHANGES 285the
Page 313 and 314:
DEMUTUALIZATION OF EXCHANGES 287cro
Page 315 and 316:
DEMUTUALIZATION OF EXCHANGES 289Ams
Page 317 and 318:
DEMUTUALIZATION OF EXCHANGES 291to
Page 319 and 320:
DEMUTUALIZATION OF EXCHANGES 293Kah
Page 321 and 322:
CHAPTER 10Developing Bond Markets:A
Page 323 and 324:
DEVELOPING BOND MARKETS: A COMPREHE
Page 325 and 326:
Page 327 and 328:
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
Page 335 and 336:
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
Page 345 and 346:
Page 347 and 348:
322 CLEMENTE DELVALLEare generally
Page 349 and 350:
Page 351 and 352:
Page 353 and 354:
Page 355 and 356:
Page 357 and 358:
Page 359 and 360:
Page 361 and 362:
•CHAPTER 11Designing a Derivative
Page 363 and 364:
DESIGNING A DERIVATIVES COMPLEMENT
Page 365 and 366:
DESIGNING A DERIVATIVES COMPLEMENTT
Page 367 and 368:
Page 369 and 370:
Page 371 and 372:
Page 373 and 374:
Page 375 and 376:
Page 377 and 378:
Page 379 and 380:
(Table continues on next page.)Copy
Page 381 and 382:
Page 383 and 384:
DESIGNING A DERIVATIVES COMPLEMENT
Page 385 and 386:
Page 387 and 388: DESIGNING A DERIVATIVES COMPLEMENTT
Page 399 and 400: DESIGNING A DERIVATIVES COMPLEMENT
Page 415 and 416: •CHAPTER 12Access to Financing fo
Page 417 and 418: ACCESS TO FINANCING FOR SMALL AND M
Page 437: ACCESS TO FINANCING FOR SMALL AND M
Page 441 and 442: •CHAPTER 13Developing Capital Mar
Page 443 and 444: DEVELOPING CAPITAL MARKETS—ETHICA
Page 453 and 454: DEVELOPING CAPITAL MARKETS-ETHICAL
Page 463 and 464: •CHAPTER 14Corporate Governancean
Page 465 and 466: CORPORATE GOVERNANCE AND CAPITAL MA
Page 487 and 488: The company's historyof equitable t
Page 489 and 490:
CHAPTER 15Human Capacity Developmen
Page 491 and 492:
HUMAN CAPACITY DEVELOPMENT 465For t
Page 493 and 494:
HUMAN CAPACITY DEVELOPMENT 467• W
Page 495 and 496:
HUMAN CAPACITY DEVELOPMENT 469spect
Page 497 and 498:
HUMAN CAPACITY DEVELOPMENT 471Table
Page 499 and 500:
Page 501 and 502:
Page 503 and 504:
Page 505 and 506:
HUMAN CAPACITY DEVELOPMENT 479struc
Page 507 and 508:
HUMAN CAPACITY DEVELOPMENT 481rapid
Page 509 and 510:
HUMAN CAPACITY DEVELOPMENT 483tate
Page 511 and 512:
PART IVCONCLUSIONCopyright © by th
Page 513 and 514:
CHAPTER 16Pragmatic Issues in Capit
Page 515 and 516:
PRAGMATIC ISSUES IN CAPITAL MARKET
Page 517 and 518:
Page 519 and 520:
Page 521 and 522:
Page 523 and 524:
Page 525 and 526:
Page 527 and 528:
Page 529 and 530:
Page 531 and 532:
Page 533 and 534:
Page 535 and 536:
Page 537 and 538:
Page 539 and 540:
Page 541 and 542:
Page 543 and 544:
IndexIn this index, page numbers in
Page 545 and 546:
INDEX 519Bolsa de Valores de Rio de
Page 547 and 548:
INDEX 521Clearing and Depository Co
Page 549 and 550:
INDEX 523costs, financial services
Page 551 and 552:
INDEX 525developing economies (cont
Page 553 and 554:
INDEX 527European Central Securitie
Page 555 and 556:
INDEX 529Global Equity Market (GEM)
Page 557 and 558:
INDEX 531institutional investorsbon
Page 559 and 560:
INDEX 533Jensen, Michael, 216job cr
Page 561 and 562:
INDEX 535margin requirements, 322,
Page 563 and 564:
INDEX 537outsourcing and infrastruc
Page 565 and 566:
INDEX 539prudent investor rule, 141
Page 567 and 568:
INDEX 541Securities and Exchange Co
Page 569 and 570:
INDEX 543technology (continued)self
Page 571:
show all

Latin American Capital Markets

Create successful ePaper yourself

Delete template?

Save as template?