Gozzi, Juan Carlosde la Torre, AugustoSchmukler, Sergio L.2012-06-042012-06-042007-04https://hdl.handle.net/10986/7011Over the past decades, many countries have implemented significant reforms to foster domestic capital market development. These reforms included stock market liberalization, privatization programs, and the establishment of regulatory and supervisory frameworks. Despite the intense reform efforts, the performance of capital markets in several countries has been disappointing. To study whether reforms have had the intended effects on capital markets, the authors analyze the impact of six capital market reforms on domestic stock market development and internationalization using event studies. They find that reforms tend to be followed by significant increases in domestic market capitalization, trading, and capital raising. Reforms are also followed by an increase in the share of activity in international equity markets, with potential negative spillover effects on domestic markets.CC BY 3.0 IGOADVERSE SELECTIONAGENCY PROBLEMSASSET PRICINGBANK PRIVATIZATIONBANKSBOARD OF DIRECTORSBONDSCAPITAL FLIGHTCAPITAL FLOWSCAPITAL MARKET DEVELOPMENTCAPITAL MARKETSCASE OF PRIVATIZATIONCORPORATE GOVERNANCEDOMESTIC CAPITALDOMESTIC CAPITAL MARKETDOMESTIC CAPITAL MARKETSDOMESTIC INVESTORSDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC STOCK MARKETECONOMIC EFFICIENCYEMERGING MARKETSENFORCEMENT MECHANISMSEQUITY CAPITALEQUITY MARKETSEXECUTIVE DIRECTORSEXOGENOUS VARIABLESEXPENDITURESEXPORTSFINANCIAL CENTERSFINANCIAL CONDITIONSFINANCIAL DEVELOPMENTFINANCIAL MARKETSFINANCIAL SERVICESFOREIGN DIRECT INVESTMENTFOREIGN INVESTORSGDPGLOBAL DEPOSITARYGOVERNMENT INTERFERENCEGROSS DOMESTIC PRODUCTHOME MARKETIMPACT OF PRIVATIZATIONINFLATIONINSIDER TRADINGINSTITUTIONAL ENVIRONMENTINSTITUTIONAL REFORMINSTITUTIONAL REFORMSINTERESTS OF MINORITY SHAREHOLDERSINTERNATIONAL BUSINESSINTERNATIONAL CAPITALINTERNATIONAL CENTERINTERNATIONAL MARKETSINVESTMENT DECISIONINVESTOR PROTECTIONLABOR MARKETLATIN AMERICANLEGAL FRAMEWORKLEGAL SYSTEMSLIFE INSURANCE COMPANIESLIMITEDLIQUIDITYLITERATURE ON PRIVATIZATIONLOCAL CAPITAL MARKETSLOCAL MARKETLOCAL STOCKMACROECONOMIC POLICIESMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMARKET CAPITALIZATIONMARKET DEVELOPMENTMARKET DISTORTIONSMARKET LIBERALIZATIONMARKET PERFORMANCEMARKET REFORMMARKET REFORMSMARKET TRADINGMINORITY SHAREHOLDERSOBJECTIVE OF PRIVATIZATIONPENSION FUNDSPENSION SYSTEMPOLITICAL INTERFERENCEPOLITICAL RISKPOSITIVE EXTERNALITIESPRICING MODELSPRIVATE FIRMSPRIVATIZATIONPRIVATIZATION ACTIVITYPRIVATIZATION DATABASEPRIVATIZATION LAWPRIVATIZATION OF STATEPRIVATIZATION PROCESSPRIVATIZATION PROGRAMPRIVATIZATION PROGRAMSPRIVATIZATION SALESPRIVATIZATION TRANSACTIONSPRIVATIZATIONSPROPERTY RIGHTSPROTECTION OF MINORITY INVESTORSPROXYPUBLIC EXPENDITURESPUBLIC OFFERINGSREGULATORY FRAMEWORKRETAILSALESSHARE OFFERINGSSHARE PRICESSTOCK EXCHANGESTOCK EXCHANGESSTOCK MARKET CAPITALIZATIONSTOCK MARKETSSTOCKSTRADE LIBERALIZATIONTRANSITION ECONOMIESTREASURY BILLSTURNOVERVALUE ADDEDWorld Bank10.1596/1813-9450-4184