Title: Dynamics of the securities market in the information asymmetry context: developing a methodology for emerging securities markets

Authors: Kostyantyn Anatolievich Malyshenko; Majid Mohammad Shafiee; Vadim Anatolievich Malyshenko; Marina Viktorovna Anashkina

Addresses: Department of 'Economy and Finance', V.I. Vernadsky Crimean Federal University, Simferopol, Russian Federation ' Department of Management, University of Isfahan, Isfahan, 81746-73441, Iran ' Department of 'Economy and Finance', V.I. Vernadsky Crimean Federal University, Simferopol, Russian Federation ' Department of 'Economy and Finance', V.I. Vernadsky Crimean Federal University, Simferopol, Russian Federation

Abstract: Developing a system of indicators that reflects the degree to which the securities market fulfils its key functions, is essential to assess the level of its development. In the conditions of asymmetric information it can also provide effective policies for securities market development. This paper is aimed to develop a set of indicators to assess the securities market performance, especially in the asymmetric information context. To this goal, we selected the Russian securities market as a case of asymmetric information context, in comparison with other post-Soviet countries, to investigate its success and failure in fulfilling its key functions. Regarding this, we developed research hypotheses and we conducted a normative research method, based on an ideal model of market functioning that is used as a criterion for testing the hypotheses. The results offer an original scale for assessing the performance of securities market of its functions. The findings also help practitioners with effective policy making in securities market regulation and its development toward its ideal state. The key contribution of this research is in developing a new scale for determining the performance and efficiency of the securities market, based on the conditions of information asymmetry.

Keywords: financial markets; information asymmetry; market functions; securities market performance.

DOI: 10.1504/GBER.2021.118207

Global Business and Economics Review, 2021 Vol.25 No.2, pp.89 - 114

Received: 11 Dec 2020
Accepted: 15 Mar 2021

Published online: 29 Sep 2021 *

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