Financial markets and the allocation of capital
Bibliographic Data
| ID | 23317271 |
|---|---|
| Authors | Jeffrey Wurgler (0000-0001-6552-281X, Yale University, corresponding author) |
| Year | 2000 |
| Volume | 58 |
| Issue | 1-2 |
| Pages | 187-214 |
| Publication date | 2000-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Financial Economics (JOURNAL) |
| Journal identifiers | ISSN: 0304-405X • E-ISSN: 1879-2774 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/s0304-405x(00)00070-2 |
| OpenAlex | W3122685622 |
| Language | EN |
| Citations received | 83 |
| References cited | 26 |
Financial markets appear to improve the allocation of capital. Across 65 countries, those with developed financial sectors increase investment more in their growing industries, and decrease investment more in their declining industries, than those with undeveloped financial sectors. The efficiency of capital allocation is negatively correlated with the extent of state ownership in the economy, positively correlated with the amount of firm-specific information in domestic stock returns, and positively correlated with the legal protection of minority investors. In particular, strong minority investor rights appear to curb overinvestment in declining industries.
Business · Capital (architecture) · Capital allocation line · Capital market · Corporate governance · Economics · Financial capital · Financial market · Financial system · Human capital · Investment (military) · Investor protection · Market economy · Monetary economics · Stock (firearms) · Banking stability, regulation, efficiency · Corporate Finance and Governance · Finance · Financial Markets and Investment Strategies
Sci-tech finance and urban industrial chain resilience
Ownership and Allocation of Capital
The Microeconomic Evidence on Capital Controls
Finance and Growth
The impacts of trade, innovations, urbanization, financial development and CO2 emission on renewable and non-renewable energy use in India
The political economy of comparative corporate governance
The impact of financial development on house prices
Economic performance in Africa
Selling China
Reinventing the Bazaar
Impact of technological innovation, financial development and foreign direct investment on renewable energy, non-renewable energy and the environment in belt & Road Initiative countries
Does financial liberalization spur growth?
R2 around the world
Corporate Governance, Economic Entrenchment, and Growth
Financing patterns around the world
Reaching out
Formal versus Informal Finance
CEO compensation in relation to worker compensation across countries
The new comparative economics
Law and finance
FDI and economic growth
Chapter 12 Finance and Growth
Bank-Based or Market-Based Financial Systems
Financial development and dynamic investment behavior
CEO gender, corporate risk-taking, and the efficiency of capital allocation
Selling China
Business Groups and the Big Push
Bank size or distance
The Effect of Green Finance on the Ecological and Environmental Quality of the Yangtze River Economic Belt
Finance and Efficiency
The Economic Consequences of Legal Origins
Investor protection and corporate governance
Merger & Acquisition and Capital Expenditure in Health Care
Strategy dynamics in multilayered networks
Cost stickiness, earnings forecast accuracy, and the informativeness of stock prices about future earnings
Mandatory CSR disclosure regulation and stock price synchronicity
Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in China
The impact of China’s SO 2 emission trading system on industrial total factor productivity
Covid‐19 pandemic and its impact on capital and output distortions
Judiciary-driven finance
Measurement of capital allocation efficiency in emerging economies
A spatial effect study on financial agglomeration promoting the green development of urban agglomerations
Resource Reallocation and Heterogeneous Productivity Growth in the Tourism Industry
Remittances and financial development in Africa
Stock market liquidity
The Relationship between Financial Development and Unemployment in Selected Countries of the European Union
Electoral systems and the economy
Financial development, carbon dioxide emissions, and sustainable development
Great Recession and Macroeconomic Theory
Financial Openness and Productivity
Banking crises and exports
The quality effect
Does financial liberalization improve the allocation of investment
Opening a stock exchange
Institutions and financial frictions
The impact of public and private sector transparency on foreign direct investment in developing countries
Firm-Specific Variation and Openness in Emerging Markets
The Role of American Depositary Receipts in the Development of Emerging Equity Markets
Do Common Stocks Have Perfect Substitutes? Product Market Competition and the Elasticity of Demand for Stocks
Configurations des systèmes financiers et contraintes de financement
Investing with the Government
The transition to renewable energy through financial development and under natural resources threshold in emerging countries
Causal links between hot money and investment markets
The effect of environmental regulation on firm productivity
Can fintech make corporate investments more efficient? A study on financing constraints and agency conflicts
Price nonsynchronicity, idiosyncratic risk, and expected stock returns in China
The impact of banking competition on firm total factor productivity
Behavioral finance and asset prices
The role of information and communication technology in encountering environmental degradation
Finance and Green Growth
Financial Markets, Industry Dynamics and Growth
Does the law and finance hypothesis pass the test of history
Foreign Financing and the International Sources of Property Rights
Financial Sector Development Indicators and Economic Growth in Cameroon and South Africa
Infrastructure Spending and the Regional Financial Development
Does Trade Credit Boost Firm Performance
China and the world financial markets 1870-1939
Development and Efficiency of the Financial Sector and Links with Trust
Law, Endowments and Property Rights
The formation and cross-border connectivity of bank branch networks across the Canadian provinces
Legal Systems, Property Rights, and Financial Development in Sub-Saharan Africa
Policy Burden of State-Owned Enterprises and Efficiency of Credit Resource Allocation
Investigating the Institutional Determinants of Financial Development
Finance and the sources of growth
Financial Intermediation and Delegated Monitoring
The General Theory of Employment, Interest and Money.
The Penn World Table (Mark 5)
Finance and Growth
The Legal Environment, Banks, and Long-Run Economic Growth
The Finance-Growth Nexus
Financing Constraints and Corporate Investment
The General Theory of Employment, Interest and Money.
The effect of financial liberalization on the efficiency of credit allocation
Law and Finance
Market Liquidity and Performance Monitoring
Financial Development, Growth, and the Distribution of Income
Financial Structure and Development
Financial Deepening in Economic Development
State versus Private Ownership
| Unique citing works | 83 |
|---|---|
| Citations per year | 3,19 |
| Citation span | 2000 - 2026 (27) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 73 |