Stock Market Development and Economic Growth

financial markets development, economic growth, economic development, stock markets development

Stock Market Development and Economic Growth: A Matter of Information Dynamics

The aim of this paper is to provide further insights into the linkages between stock market development and economic growth. When it is not possible to distinguish between investment projects with different rates of return, market valuation of those projects is an “average value” reflecting the expected return across all investment opportunities. Consequently, as in a typical lemon’s market, higher return projects are penalised since they attract lower than fair prices. This informational cost, or dilution cost, depends on the degree of informational asymmetry in the market, as well as on the type of financial contract issued by the firm to finance those projects – typically, equity or debt. On this basis, we interpret the development of stock market as the result of a change in the level of informational costs which decrease with capital accumulation and induce firms to switch from debt financing to a less costly equity financing.Credit Markets, Economic Growth, Information Asymmetries, Stock Markets

BANKRUPTCY COSTS, DILUTION COSTS AND STOCK MARKET DEVELOPMENT

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Osteology and relationships of Rhinopycnodus gabriellae gen. et sp. nov. (Pycnodontiformes) from the marine Late Cretaceous of Lebanon

The osteology of Rhinopycnodus gabriellae gen. and sp. nov., a pycnodontiform fish from the marine Cenomanian (Late Cretaceous) of Lebanon, is studied in detail. This new fossil genus belongs to the family Pycnodontidae, as shown by the presence of a posterior brush-like process on its parietal. Its long and broad premaxilla, bearing one short and very broad tooth is the principal autapomorphy of this fish. Within the phylogeny of Pycnodontidae, Rhinopycnodus occupies an intermediate position between Ocloedus and Tepexichthys

Gladiopycnodontidae, a new family of pycnodontiform fi shes from the Late Cretaceous of Lebanon, with the description of three genera

The osteology of Gladiopycnodus karami gen. et sp. nov., of Monocerichthys scheuchzeri gen. et sp. nov. and of Rostropycnodus gayeti gen. et sp. nov., three new fossil fishes from the marine Cenomanian (Late Cretaceous) of Lebanon, is studied in detail. Some of their cranial characters and the presence of a postcoelomic bone clearly refer these fishes to the order Pycnodontiformes. However, they differ from all other described Pycnodontiformes by two important characters. Their snout is elongated as a rostrum, formed by the enlarged prefrontal and the toothless premaxilla, with this premaxilla sutured by its upper margin to the lower margin of the prefrontal. Their pectoral fin is replaced by a strong spine articulated with the cleithrum. These two apomorphies justify the erection of a new family, the Gladiopycnodontidae. The skull of Monocerichthys scheuchzeri sp. nov. does not differ greatly from a classical pycnodontiform skull and this species seems to be the more primitive member of this new family. Gladiopycnodus karami gen. et sp. nov. and Rostropycnodus gayeti gen. et sp. nov. are much more specialized. They share some apomorphies not present in Monocerichthys scheuchzeri gen. et sp. nov., i. e., an extremely long rostrum and an elongated first anal pterygiophore that sustains with the postcoelomic bone a strong and long anal spine. Gladiopycnodontidae fam. nov. and Coccodontidae share a series of apomorphies that justify the erection of a new superfamily, Coccodontoidea, grouping these two families