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Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation

This article investigates the hypothesis that the property structure of organisations is related to the quality of the products and services that they supply. The analysis is accomplished through the study of the Brazilian stock exchange (Bovespa), which modified its property structure through demut...

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Main Authors: Kawamto, Carlos Tadao, Wright, James Terence Coulter
Format: Article
Language:English
Published: Universiti Utara Malaysia Press 2016
Subjects:
HB Economic Theory
Online Access:http://repo.uum.edu.my/24968/1/IJBF%2012%201%202016%2031%2047.pdf
http://repo.uum.edu.my/24968/
http://ijbf.uum.edu.my/index.php/previous-issues/152-the-international-journal-of-banking-and-finance-ijbf-volume-12-no-1-2016
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spelling my.uum.repo.249682018-10-17T03:06:32Z http://repo.uum.edu.my/24968/ Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation Kawamto, Carlos Tadao Wright, James Terence Coulter HB Economic Theory This article investigates the hypothesis that the property structure of organisations is related to the quality of the products and services that they supply. The analysis is accomplished through the study of the Brazilian stock exchange (Bovespa), which modified its property structure through demutualisation and capital opening at the end of 2007. According to the New Institutional Economics (NIE), the modification of property structures could result either in the deterioration of quality, due the need of for-profit firms to increase profits and cut costs, or improvement in quality, due to increases in efficiency. This question is evaluated through Lumsdaine and Papell’s (1997) endogenous two structural break test applied on the average bid-ask spread of all stocks traded on the Bovespa. The result indicates that there is a significant break in the series trend during the demutualisation process, suggesting that the property structure change led to an improvement in market quality. Universiti Utara Malaysia Press 2016 Article PeerReviewed application/pdf en http://repo.uum.edu.my/24968/1/IJBF%2012%201%202016%2031%2047.pdf Kawamto, Carlos Tadao and Wright, James Terence Coulter (2016) Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation. International Journal of Banking and Finance (IJBF), 12 (1). pp. 31-41. ISSN 1675-7227 http://ijbf.uum.edu.my/index.php/previous-issues/152-the-international-journal-of-banking-and-finance-ijbf-volume-12-no-1-2016
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HB Economic Theory
spellingShingle HB Economic Theory
Kawamto, Carlos Tadao
Wright, James Terence Coulter
Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation
description This article investigates the hypothesis that the property structure of organisations is related to the quality of the products and services that they supply. The analysis is accomplished through the study of the Brazilian stock exchange (Bovespa), which modified its property structure through demutualisation and capital opening at the end of 2007. According to the New Institutional Economics (NIE), the modification of property structures could result either in the deterioration of quality, due the need of for-profit firms to increase profits and cut costs, or improvement in quality, due to increases in efficiency. This question is evaluated through Lumsdaine and Papell’s (1997) endogenous two structural break test applied on the average bid-ask spread of all stocks traded on the Bovespa. The result indicates that there is a significant break in the series trend during the demutualisation process, suggesting that the property structure change led to an improvement in market quality.
format Article
author Kawamto, Carlos Tadao
Wright, James Terence Coulter
author_facet Kawamto, Carlos Tadao
Wright, James Terence Coulter
author_sort Kawamto, Carlos Tadao
title Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation
title_short Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation
title_full Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation
title_fullStr Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation
title_full_unstemmed Property Structure of Stock Exchanges and Market Quality: A Study of the Bovespa Demutualisation
title_sort property structure of stock exchanges and market quality: a study of the bovespa demutualisation
publisher Universiti Utara Malaysia Press
publishDate 2016
url http://repo.uum.edu.my/24968/1/IJBF%2012%201%202016%2031%2047.pdf
http://repo.uum.edu.my/24968/
http://ijbf.uum.edu.my/index.php/previous-issues/152-the-international-journal-of-banking-and-finance-ijbf-volume-12-no-1-2016
_version_ 1644284191241666560
score 13.211869

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