Business Finance in Less Developed Capital Markets

By Klaus P. Fischer; George J. Papaioannou | Go to book overview
Save to active project

Mutual Funds in Developing Capital Markets: A Critical Evaluation of the Turkish Experience


Changes in the forms and delivery modes of financial services offered by commercial banks and other nonbank financial intermediaries have taken place at an unprecedented pace during the last several decades in developed Western financial markets. The development and growth of investment companies and mutual funds as intermediaries in this highly innovative environment took place during the postwar period, especially in the 1960s. Serving as media through which individual investors acquire a stake in bonds and stocks, investment companies have had a great influence on investor habits and the securities markets.

A growing number of developing countries are restructuring their economies to increase the operational and allocational efficiency of their capital markets. Joining this group, Turkey, as part of its far-reaching structural reforms toward liberalization and stabilization, started rapid changes in the role and workings of its capital markets and financial system. The emergence of different forms of intermediation and new financial instruments and institutions demands a well-orchestrated and carefully monitored mechanism to ensure the optimal contribution of each upsurging component to the smooth functioning of the overall system.

In this chapter we will present a critical evaluation of the Turkish experience with a developing economy undergoing some fundamental structural changes in its financial sector, emphasizing the role of newly established financial institutions, specifically the mutual funds. Our purpose in analyzing the Turkish case is twofold. First, we believe that the issues raised should provide a useful input for future efforts in the same direction by other developing economies. Second, since Turkey is still undergoing its structural adjustment program, both market participants and the regulators could benefit from our critical evaluations and warnings. We believe that mutual funds, as one of the newcomers to the system, will play a pioneering role and contribute in many ways to the development of efficient and healthy capital


Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this page

Cited page

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Business Finance in Less Developed Capital Markets
Table of contents

Table of contents



Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 398

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?