The "Dilution Effect" and Emerging Markets

The "Dilution Effect" and Emerging Markets
Nitzan, Jonathan. (1996). Emerging Markets Analyst. Vol. 5. No. 1. May. pp. 12-21. (Article - Magazine; English).

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Abstract or Brief Description

Contrary to the conventional wisdom, rapid growth in real investment is not necessary positive for equities. In emerging markets, the need to finance large-scale capital formation creates a wave of initial public offerings and privatization, which turn “dilute” the relative share of existing equities. Over time, changes in pace of IPOs and privatization tend to alter the effect of liquidity and earnings on equity prices.



Publication Type

Article - Magazine


capitalization dilution discounting equity emerging markets earnings investment liquidity present value valuation


BN Data & Statistics
BN Distribution
BN Methodology
BN Money & Finance
BN Capital & Accumulation
BN International & Global
BN Growth

Depositing User

Jonathan Nitzan

Date Deposited

17 Jan 2005

Last Modified

08 Apr 2019 19:35


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