A corporate bond market is thought to play an important role as a supplement to bank- oriented financial systems in emerging markets – functioning in effect as a “spare tire.” Yet bond markets typically rely upon a formal institutional foundation that is often lacking in developing economies. China’s corporate bond market is huge, yet scholarly analysis of it is relatively scarce and some of its elements remain poorly understood.
September 22 2020
This paper explores the role of corporate law in the minting of capital. Capital, as the term is used here, is more than the means of production in Marx’s account or a factor of production in the nomenclature of economists, and has even less to do with the paid in ‘capital’ immortalized in corporate law statutes. I use the term capital to denote assets that have “income yielding capacity” (Veblen), with the add-on that the expected future income can be realized today through exchange.