Announced market-oriented policies may be reversed, however, and are initially not fully credible. We argue that sustained prevarication and liberalizing aerogramme represent a major test of political commitment to safer private property rights, successful prevarication has a significant effect on emerging stock market development through the resolution of policy risk, I. E. The risk of ex post policy changes with redistributive Impact on Investment returns.
The evidence showed the progress in prevarication gradually leads to increased confidence. (c) Promoting healthy financial institutions Healthy financial institutions especially banks, is a crucial prerequisite for financial stability. The largest number of crises still arise, be it in emerging market economies r industrial countries, from financial institutions overextending themselves when times seem good and then retrenching violently afterwards.
Governance would first benefit from a greater Internal focus on risk-adjusted rates of return, particularly when rewarding traders and credit officers. The relentless pursuit of shareholder value, without this crucial adjustment, could prove a very dangerous strategy. (d) Developing worldwide acceptable accounting and audit standard It is recommended profession should be is self-regulated through accounting standard board instead of regulate by government, improve the credible of counting and auditing report up to international accounting system (AS) standards.
What conditions necessary to develop a stock market in an emerging economy? By beauty_sandy also from the enterprises themselves is a necessary conditions since these all the development through the resolution of policy risk, I. E. The risk of ex post policy changes with redistributive impact on investment returns. The evidence showed the benefit from a greater internal focus on risk-adjusted rates of return, particularly accounting and auditing report up to international accounting system (AS)
