CEU Electronic Theses and Dissertations, 2024
| Author | Lyn, Sofiya |
|---|---|
| Title | The Effect of CMU Action Plan of 2015 on the Member States in Central Eastern Europe: Eased Access of Firms to Financing Opportunities |
| Summary | The Capital Markets Union Action Plan of 2015, was the first initiated strategy for establishing a single market of capital in the European Union. After significant consequences of the global financial crisis of 2008, the action plan was introduced to increase market efficiency and diversify the funding sources for European companies, and it possessed a huge potential for Central and Eastern European (CEE) member states due to the limited activity of their capital markets. This study examines the influence of the regulations regarding the CMU Action Plan 2015 on eased access and decreased cost of funding for the CEE companies. In particular, the research focuses on examining IPO activity, earnings-price ratios (E/P), and interest rates on new business loans. The findings indicate that there has been no significant impact on IPO issues or E/P ratios; nevertheless, smaller businesses could have benefited from a decrease in interest rates for loans up to 1 mln EUR. The efficiency of the CMU may be limited due to the low market liquidity and still developing equity markets in the CEE region. Additionally, during the research period, CEE member states encountered significant economic events, namely the European sovereign debt crisis, Brexit, and COVID-19. Despite the immediate effects of the CMU Action Plan being rather unclear, there could be potential long-term benefits of the regulations in reducing borrowing costs for companies and increasing their capital markets activity. |
| Supervisor | Danis Andras |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2024/lyn_sofiya.pdf |
Visit the CEU Library.
© 2007-2021, Central European University