Capital markets

Capital markets worldwide are undergoing profound changes and are expected to play an increasingly important role in providing business with access to capital. This is prompting many countries to review the functioning of their capital markets to provide better conditions for financing private sector innovation, investment and growth. Capital market reforms are often supported by more competitive corporate governance regulations, including company law and securities regulation. The OECD reviews the functioning of capital markets, provides international comparisons and proposes how to improve corporate access to capital. This analysis is evidence-based and drawn from a broad spectrum of international experiences with improving national capital formation and private sector competitiveness.

Equity markets

Equity capital supports forward looking long-term investments that include research, development and innovation with uncertain outcomes. It also serves for investments in intangible assets that do not have the well-defined collateral often required for traditional loans.

2018 equity market review of Asia‌

Who cares? Corporate governance in today’s equity markets

 

Corporate governance factbook

OECD Corporate Governance Factbook 2017 150x200‌The Factbook supports the implementation of good corporate governance practices by providing an easily accessible and up-to-date, factual underpinning for understanding countries’ institutional, legal and regulatory frameworks in 47 countries.

Corporate Governance Factbook

Corporate bond markets

Corporate Bonds, Bondholders and Corporate Governance Cover Worldwide, corporate bond markets have become an increasingly important source of corporate finance, especially for non-financial companies. This means that policy makers, regulators and market participants need access to a comprehensive empirical overview of corporate bond market developments and an analysis of the structural issues that accompany these trends.

 Corporate bonds, bondholders and corporate governance                        ‌

Institutional investors

‌Institutional ownership of publicly listed companies is dramatically increasing in most countries and a number of new institutions have become significant owners alongside the more traditional institutional investors, such as pension funds and investment funds. These developments have given new impetus to the discussion about the role of institutional investors in capital allocation and as owners of publicly listed companies.

 Institutional investors as owners                        ‌

Capital market structure

150x200‌Profound structural changes have swept through the stock exchange industry in recent years. Most traditional stock exchanges are now public companies whose shares are listed on their own stock exchanges. Public equity markets have become characterised by fragmentation of trading between stock exchanges and other trading venues. Among the forces driving these trends are advancements in information and communication technology, supported by regulatory reforms that promote competition between different trading venues.

 The business models of stock exchanges and stock market fragmentation                        ‌

Growth companies

150x200‌Growth companies play a critical role in economic development but growth requires investment and long-term investment requires patient capital. Companies with the potential to grasp commercial opportunities of scale and scope need to have access to market-based financing. This access is only possible if these companies can meet investor expectations with respect to corporate governance practices.

Growth companies, access to capital markets and corporate governance