The East Asian corporate bond market after the 1997 crisis and the subprime crisis as a source of experience and conclusions for contemporary projects supporting the development of the capital market in Europe
PRELUDIUM 9, Principal Investigator PAWEŁ PISANY
In 1999, Alan Greenspan, speaking about the Asian financial crisis two years earlier, called capital markets the "spare wheel" of the financial system. Our research project concerns just one of such markets, which can act as a system stabilizing and substitutive function for a bank loan - namely the corporate bond market. The aim of the research is to analyze factors conducive to the development of corporate debt instruments, as well as to assess possible political undertakings that may support such development. As a result, conclusions will be drawn that can be used in the design of financial market regulations in Poland and, above all, in the European Union in the context of the planned European capital markets union (European Commission, 2015) (N. Veron, 2014) (A. Greenspan, 1999 Our research will be based on data from the financial market of emerging East Asian economies, in particular: China, Hong Kong, Indonesia, Malaysia, Philippines, Thailand, Vietnam. The analysis of the corporate bond market of East Asian countries is interesting and necessary due to the fact that after the financial crisis of 1997 they experienced a visible growth, and the Asian economy turned out to be exceptionally resilient to the subprime crisis (P. Jeasakul, Ch. H. Lim, E. Lundback, 2014) (B.N. Bhattacharyay, 2011). On the occasion of model research, we will also conduct an analysis based on case studies of selected East Asian countries, which will allow us to trace the difficulties and possible threats related to the period of dynamic development of the corporate bond market. Among the variables that may hypothetically affect the capitalization of the corporate bond market and will be taken into account models are: size of the economy (GDP), openness (Export/GDP), level of development (GDP per capita), level and variance of interest rates, size and level of concentration of the banking sector, level of development of asset managers, exchange rate variance, tradition and quality of the legal system, the level of transparency and corporate governance in the economy, the enterprise concentration index, the level of public sector demand for funds, the level of development of the treasury bond market, the level of development of national rating agencies. After working with the models, case studies of selected Asian countries will also be conducted to enrich the study with some complementary analyzes (Eichengreen and Luengnaruemitchai, 2004) (I. Shim, 2011) (World Economic Forum, 2015) (T. Schiller, 2011) .