research topics on capital markets

6 issues that will define the future of capital markets

The democratization of the markets has challenged the status quo, with retail traders costing hedge funds billions by influencing the prices of companies including Gamestop Image:  Michael Förtsch for Unsplash

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Stay up to date:, financial and monetary systems.

• In the wake of the pandemic and an unequal economic recovery, global capital markets are being transformed by a number of interrelated forces.
• The democratization of public markets has brought benefits and challenges, as has greater access to new wealth creation opportunities in private markets and alternatives.
• Other significant issues include concerns around data and cyber security, the changing dynamics of financial intermediation, and environmental, social and governance transparency.

In the wake of the pandemic and an unequal economic recovery, several interrelated forces are transforming the way global capital markets work. As the world's economies rebound, market participants broadly recognize a need for reforms to the established modus operandi, to build resilience, to remain competitive in the face of innovation, and to retain their customers’ trust.

The World Economic Forum's platform on Shaping the Future of Financial and Monetary systems , in collaboration with BNY Mellon, will launch a new series of multi-stakeholder conversations on the future of capital markets. The project aims to help financial market participants to better understand the dynamics shaping the future of capital markets, while strengthening trust in the system. The following six areas will be central to the discussion:

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How personalizing sustainable investments can shape the future of finance , cryptocurrencies can enable financial inclusion. will you participate, data marketplaces can transform economies. here’s how.

1. Democratization of public markets

In January, a contingent of retail traders (non-professional traders) on Reddit’s WallStreetBets launched the equivalent of a market revolt by drastically influencing the prices of several publicly-traded companies. These episodes cost hedge funds and professional investors – many of whom had been betting against these same stocks – billions of dollars, and raised questions about market practices and resilience.

Historically, access to capital markets was highly mediated, available only to institutions or individuals who had the time, money and resources to manage their assets with the help of brokers and financial advisors. Today, market data is readily accessible online and new technologies have significantly reduced the cost of trading and other barriers to entry. This means that more people can trade, at any time, from anywhere.

Retail investors now make up an estimated 23% of US equity trading volume , which represents more than a two-fold increase since 2010. Increased access to markets is a positive development, but it is not without risk. It raises important questions about market and institutional resilience, and investor safeguards, as well as opening a broader discussion on financial education.

2. Greater access to new wealth creation opportunities

Private market investment opportunities, with their more lucrative return profiles, were historically available only to institutional and accredited investors. This exclusive access was based on a perceived level of sophistication and risk management expertise among these investors. Today, new products are being developed that allow retail investors to allocate capital to private market alternatives.

Here again, challenges surface when opening these products to a larger community of investors. People need to know about the associated risks, which differ materially from investing in traditional stocks and bonds.

3. Blurring of public and private markets

More companies than ever before are entering public markets worldwide, and yet in the United States we are seeing firms remain private for longer, and others electing to transition from public to private. This trend is fuelled by heightened disclosure requirements and regulatory scrutiny for publicly-held firms, as well as investor eagerness to fund private companies. Firms are also exploring other avenues to raise capital and reduce dependency on equity markets.

More recently, we have seen a burgeoning market for special purpose acquisitions companies (SPACs) as an alternative route to the traditional Initial Public Offering (IPO). Many businesses have turned to SPACs as a means of streamlining the process of raising capital in public markets, but increased competition and potential regulatory scrutiny have raised questions around their future.

4. Concerns around data and cyber security

Capital markets processes have become more digital as market participants demand faster execution speeds and seamless access to information. These technologies accelerate changes in the industry, but also raise concerns around cybersecurity and data protection.

Data is emerging as its own asset class, and data management infrastructure is a key growth area for traditional financial firms. Institutions are actively seeking ways to leverage analytics to remain nimble and promote growth.

The World Economic Forum's FinCyber initiative , in partnership with the Carnegie Endowment for International Peace, is working to connect the industry’s various cybersecurity initiatives. But questions remain around how firms can innovate safely, benefiting from a more agile use of data while mitigating risks.

5. New roles for financial firms

Some functions traditionally performed by large financial firms are being performed by a new set of competitors. As a result, institutions across the value chain are redefining their roles, taking on new responsibilities, partnering with new technology providers, and introducing new ways of operating in order to keep pace with their clients' needs.

As of 2020, 250 of the top private fintech startups internationally had raised nearly $50 billion in aggregate funding . These platforms often provide complementary services to those offered by legacy institutions, presenting new chances for collaboration and integration. While industry stakeholders have made substantial progress in understanding how consumer-facing fintechs are reshaping financial services, the role of fintech in institutional capital markets is less well understood.

For instance, Blockchain and distributed ledger technologies have the potential to disrupt core functions within capital markets, including trading processes, settlement systems, payments, and capital raising. At the same time, regulators and lawmakers are increasingly vocal about concerns around cryptocurrencies, raising important questions around their future viability as an asset class.

What is the World Economic Forum doing about digital trade?

The Fourth Industrial Revolution – driven by rapid technological change and digitalization – has already had a profound impact on global trade, economic growth and social progress. Cross-border e-commerce has generated trillions of dollars in economic activity continues to accelerate and the ability of data to move across borders underpins new business models, boosting global GDP by 10% in the last decade alone.

The application of emerging technologies in trade looks to increase efficiency and inclusivity in global trade by enabling more small and medium enterprises (SMEs) to repeat its benefits and by closing the economic gap between developed and developing countries.

However, digital trade barriers including outdated regulations and fragmented governance of emerging technologies could potentially hamper these gains. We are leading the charge to apply 4IR technologies to make international trade more inclusive and efficient , ranging from enabling e-commerce and digital payments to designing norms and trade policies around emerging technologies (‘TradeTech’).

6. Transparency around ESG

ESG is a top priority for financial firms. As investors, asset owners, and corporations navigate their roles in supporting the transition to net-zero and stakeholder capitalism—including adopting consistent reporting standards around ESG metrics—significant questions remain about what market structures and tools are needed to support sustainable investing.

We are living through a unique moment in history. The COVID-19 pandemic has forced reflection and accelerated change. Capital markets will continue to evolve, and they must do so in an inclusive and collaborative manner in order to retain public trust.

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License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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RESEARCH REPORT

Towards the capital markets of tomorrow

5-MINUTE READ

June 2, 2021

• By 2025, sell-side leaders will have created digitally enabled operating models that lower costs and offer enhanced experiences for customers and employees.
• Buy-side leaders will have become technology-driven and data-enabled, with the client at the center of the value proposition.
• Market infrastructure leaders will have embraced digital transformation—from data monetization to cloud, digital assets to artificial intelligence.

From short-term profitability to long-term value

The global capital markets industry saw in 2020 a temporary respite from the largely limited growth the industry had seen in the years leading up to it. Driven by market volatility, industry revenues reached near-record levels on the sell-side and in the exchange sector. The buy-side saw good growth in assets under management and short-term profitability was strong for many firms in the industry in 2020.

A vision for the future

Capital markets leaders today have an opportunity to turn a short-term rebound spurred by 2020 events into more sustainable businesses of the future. How? By investing in game-changing technologies, as well as new business and talent strategies.

For several years, technology-led innovation and the creation of new digital value chains remained the key industry disruptors. Now, a global pandemic has increased the scope for change and has also created a greater willingness by capital markets leaders to embrace new ways of doing business.

But one key question remains: What might the capital markets industry look like in 2025? And from that—what should firms prepare for and invest in?

Source: Company Financial Statements, Accenture Research

Sell-side: Investment banking 

Investment banking: Investing in humans + technology

In 2025, investment banking leaders will have not only recognized people and technology as key assets to their business, they’ll also have invested toward that end.

The successful, value-creating investment bank of 2025 could be a global scale player or a niche specialist. 

Room exists for both types of firms—global scale players and niche specialists—to create value in the marketplace. Regardless of size or target market, we believe all winners will share a combination of greater agility and a clear focus on their chosen strategy. To get there, they’ll need a digitally enabled operating model that keeps costs low while offering enhanced experiences to customers and employees.

By 2025, people and technology capabilities would distinguish true competitors from firms playing catch-up. For the short- and medium-term actions investment banks could take to get there, check out our full Capital Markets Vision 2025.

The successful, value-creating investment bank of 2025 could be a global scale player or a niche specialist.

Buy-side: Asset & wealth management and private markets

Firms making digital strides now could take steps that—by 2025—would allow them to be more client-centric than ever before.

Asset managers will be:

Leveraging data and analytics to gain an edge in the hunt for yield and alpha, while bending the cost curve and realizing operational efficiencies.

Wealth managers will be:

Creating a nimble, flexible, end-to-end digital model that delivers a simplified, cost-effective core operating model and a better client experience.

Private markets firms will be:

Enhancing and expediting the investment process while taking costs out of the firm, portfolio and holding companies.

Asset management: A new playbook

By 2025, asset managers will have leveraged a new digital playbook that emphasizes artificial intelligence (AI), data and analytics. Stressing capabilities over products, moving beyond cost-cutting to improving client experience and taking a hard look at data strategy are all good moves toward being future-ready.

Wealth management: Client-driven transformation

Being successful in the future may require wealth managers to adopt new business models that are technology-driven and data-enabled, with the client at the center of the value proposition. Wealth management firms would need to find new ways to simultaneously increase profitability and enhance the client and advisor experience, while also digitizing the overall operating model. This means focusing on hyper-personalization, diversified products and services, hybrid advice, revamped distribution and digital end-to-end (E2E) operations.

Private markets: The digitally enabled firm

As more and more private markets firms leverage a platform-based perspective, they would be able to create and deliver a true end-to-end view of the investment lifecycle. To get there, they need a digital operating model—one that gives them command of real-time data, harnesses in-house expertise for continued operational efficiencies and houses a strategy that maximizes investment opportunities.

Financial market infrastructure: Exchanges and asset servicing

Exchanges: Fully automated and digital.

The ultimate win would be to achieve full exchange automation with tokenization using blockchain technology, thereby removing the high-cost messaging and reconciliation dynamics of the industry. Several players have announced they are close to go-to-market with digital exchange offerings, and these would have the potential to revolutionize the exchange market as we know it today.

The successful exchanges of 2025 will have adapted their business model to embrace digital transformation to get closer to their clients.

They would have broadened their offerings structure to include data monetization, environmental-benefit linked securities and digital assets. And, like any other successful market infrastructure player, they would maximize the value they get from cloud, AI and advanced analytics allowing them to simultaneously bend the cost curve and create new revenue potential.

Asset servicing: Digital asset custody

Asset servicing firms might move from being heavily focused on post-trade services such as clearing and settlement today to more digital asset custody tomorrow. Safekeeping a digital asset and creating a verifiable authorization framework around it would become more essential as demand for it will rise from investors.

Creating the capital markets of tomorrow

Business and technology strategy are converging. How capital markets firms combine and integrate the two will largely determine their success. Wise moves now could include everything from becoming a “cloud first” business to securing the right people with the right skills. Read our report for more on actions your capital markets firm can take to get there.

We’re here to help your firm become future-ready, now.

Related capabilities

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Matthew Long

Senior Managing Director – Global Capital Markets Lead

Laurie McGraw

Managing Director – Capital Markets, North America Lead

Nicole Bodack

Managing Director – Capital Markets, Growth Markets Lead

Soichiro Muto

Nicholas Tilson

Managing Director – Capital Markets

Schira Lillis

Director – Accenture Research, Financial Services

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Understanding Capital Markets

Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Capital markets include the stock market and the bond market. They help people with ideas become entrepreneurs and help small businesses grow into big companies. They also give folks like you and me opportunities to save and invest for our futures.

This video in the Tools for Enhancing the Stock Market Game™: Invest it Forward™ series defines stocks and bonds and provides an explanation of what capital markets are and how they work.

Video Transcript

What image comes to mind when you hear the word “market”? Do you picture a grocery store or a produce market in a town square, or perhaps a shopping mall?

These are all examples of markets, but you might be surprised to learn that some important markets aren’t stores at all. In fact, the buyers and sellers will probably never meet. But our economy would not function the same without these markets—they are capital markets.

Here’s an example. Meet John. John has an idea for a new business—delicious ice cream that's healthy enough to eat anytime of the day. Yum! He saved his money in the bank, earned interest, and used that to start his business. John tests the market, and BOOM, his product is a hit. In fact, there's so much demand he can't fill ice cream cones fast enough; the business is growing! John needs to hire people to help him produce, sell, and deliver his ice cream. He needs more ingredients from his suppliers, like the fruit seller and the cone baker. John doesn't have the money to pay for all of this right now, but according to his business plan and test market results, he’s going to make millions in the first year. Enter: capital markets.

Financial capital is money entrepreneurs and businesses use to buy resources and supplies. These are then used to make products or provide services to buyers. Financial capital is raised through capital markets in two ways—by selling bonds, which are like loans that the business will repay at a later date with interest, or by selling stocks, which are sold in exchange for the partial ownership of the business.

Issuing or selling stocks takes place through an IPO or initial public offering. The amount buyers are willing to spend and sellers want to make determines the price of the stock. Unlike a loan, which has to be repaid, issuing an IPO or "going public" allows others to buy a share or a portion of your business and become a partial owner. The person or institution with the most shares at any time is the company's main owner.

Many small businesses conduct IPOs and earn money to become large companies. These companies expand across the country and create thousands of jobs. They also stimulate new businesses related to supplies, production and delivery, and provide a good or service that consumers value.

People buy stock because they believe eventually the value of the stock will go up, allowing them to sell the stock at a higher price than the initial purchase price. The risk is that the value of the stock could go down.

A company may issue bonds instead of stocks. A bond is a loan investors make to a company or government. Unlike stockholders, bond purchasers are not company owners. Instead, they receive interest payments and are repaid the loan amount at a future date. Businesses issue bonds and so do federal, state, and local governments. Bonds often help pay for big projects, such as new schools, hospitals, stadiums, and road repairs.

Without markets for stocks and bonds, business owners would have fewer options to bring their ideas to life or to expand their businesses; they would have to save up enough cash to re-invest. With healthy capital markets, business owners can obtain the needed financial capital to build successful companies. They can also expand existing businesses to create new jobs and strengthen the economy.

Capital markets also reduce the cost of doing business by providing the global economy with a reliable source of cash or liquidity.

Capital markets bring borrowers and lenders together in efficient ways and help channel resources to create a healthy national and global economy. They provide essential funding that affects people's lives in many ways, from starting a business to expanding a current one, or providing investment opportunities for people planning for their future. Capital markets allow traders to buy and sell stocks and bonds, and enable businesses to raise financial capital to grow. Businesses also have reduced risk and expenses in acquiring financial capital because they have reliable markets where they can obtain funding. Capital markets are there to match them with the best funding source. One day, you might have an idea—like healthy ice cream—that you want to turn into a business. Capital markets will be there to help make it happen. And that’s the scoop!

Supporting Materials

Download materials to accompany the Understanding Capital Markets video:

• For a more detailed overview, check out our online module, Capital Markets . Content includes an understanding of capital markets, financial assets such as stocks and bonds, primary and secondary markets, financial capital and risk. After completing this module, viewers will understand the role of capital markets in the economy and will be able to explain why savers, businesses, governments and entrepreneurs participate in capital markets.
• Printable slides (.pptx)

The Tools for Enhancing The Stock Market Game™: Invest it Forward™ video series is brought to you by the Federal Reserve Bank of St. Louis in cooperation with the SIFMA Foundation . Learn more about the The Stock Market Game™ .

This video is included in an online booklet for Boy Scouts to earn the Personal Management merit badge, one of the requirements to become an Eagle Scout.

If you have difficulty accessing this content due to a disability, please contact us at 314-444-8624 or [email protected] .

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Research Topics & Ideas: Finance

120+ Finance Research Topic Ideas To Fast-Track Your Project

If you’re just starting out exploring potential research topics for your finance-related dissertation, thesis or research project, you’ve come to the right place. In this post, we’ll help kickstart your research topic ideation process by providing a hearty list of finance-centric research topics and ideas.

PS – This is just the start…

We know it’s exciting to run through a list of research topics, but please keep in mind that this list is just a starting point . To develop a suitable education-related research topic, you’ll need to identify a clear and convincing research gap , and a viable plan of action to fill that gap.

If this sounds foreign to you, check out our free research topic webinar that explores how to find and refine a high-quality research topic, from scratch. Alternatively, if you’d like hands-on help, consider our 1-on-1 coaching service .

Overview: Finance Research Topics

• Corporate finance topics
• Investment banking topics
• Private equity & VC
• Asset management
• Hedge funds
• Financial planning & advisory
• Quantitative finance
• Treasury management
• Financial technology (FinTech)
• Commercial banking
• International finance

Corporate Finance

These research topic ideas explore a breadth of issues ranging from the examination of capital structure to the exploration of financial strategies in mergers and acquisitions.

• Evaluating the impact of capital structure on firm performance across different industries
• Assessing the effectiveness of financial management practices in emerging markets
• A comparative analysis of the cost of capital and financial structure in multinational corporations across different regulatory environments
• Examining how integrating sustainability and CSR initiatives affect a corporation’s financial performance and brand reputation
• Analysing how rigorous financial analysis informs strategic decisions and contributes to corporate growth
• Examining the relationship between corporate governance structures and financial performance
• A comparative analysis of financing strategies among mergers and acquisitions
• Evaluating the importance of financial transparency and its impact on investor relations and trust
• Investigating the role of financial flexibility in strategic investment decisions during economic downturns
• Investigating how different dividend policies affect shareholder value and the firm’s financial performance

Investment Banking

The list below presents a series of research topics exploring the multifaceted dimensions of investment banking, with a particular focus on its evolution following the 2008 financial crisis.

• Analysing the evolution and impact of regulatory frameworks in investment banking post-2008 financial crisis
• Investigating the challenges and opportunities associated with cross-border M&As facilitated by investment banks.
• Evaluating the role of investment banks in facilitating mergers and acquisitions in emerging markets
• Analysing the transformation brought about by digital technologies in the delivery of investment banking services and its effects on efficiency and client satisfaction.
• Evaluating the role of investment banks in promoting sustainable finance and the integration of Environmental, Social, and Governance (ESG) criteria in investment decisions.
• Assessing the impact of technology on the efficiency and effectiveness of investment banking services
• Examining the effectiveness of investment banks in pricing and marketing IPOs, and the subsequent performance of these IPOs in the stock market.
• A comparative analysis of different risk management strategies employed by investment banks
• Examining the relationship between investment banking fees and corporate performance
• A comparative analysis of competitive strategies employed by leading investment banks and their impact on market share and profitability

Private Equity & Venture Capital (VC)

These research topic ideas are centred on venture capital and private equity investments, with a focus on their impact on technological startups, emerging technologies, and broader economic ecosystems.

• Investigating the determinants of successful venture capital investments in tech startups
• Analysing the trends and outcomes of venture capital funding in emerging technologies such as artificial intelligence, blockchain, or clean energy
• Assessing the performance and return on investment of different exit strategies employed by venture capital firms
• Assessing the impact of private equity investments on the financial performance of SMEs
• Analysing the role of venture capital in fostering innovation and entrepreneurship
• Evaluating the exit strategies of private equity firms: A comparative analysis
• Exploring the ethical considerations in private equity and venture capital financing
• Investigating how private equity ownership influences operational efficiency and overall business performance
• Evaluating the effectiveness of corporate governance structures in companies backed by private equity investments
• Examining how the regulatory environment in different regions affects the operations, investments and performance of private equity and venture capital firms

Asset Management

This list includes a range of research topic ideas focused on asset management, probing into the effectiveness of various strategies, the integration of technology, and the alignment with ethical principles among other key dimensions.

• Analysing the effectiveness of different asset allocation strategies in diverse economic environments
• Analysing the methodologies and effectiveness of performance attribution in asset management firms
• Assessing the impact of environmental, social, and governance (ESG) criteria on fund performance
• Examining the role of robo-advisors in modern asset management
• Evaluating how advancements in technology are reshaping portfolio management strategies within asset management firms
• Evaluating the performance persistence of mutual funds and hedge funds
• Investigating the long-term performance of portfolios managed with ethical or socially responsible investing principles
• Investigating the behavioural biases in individual and institutional investment decisions
• Examining the asset allocation strategies employed by pension funds and their impact on long-term fund performance
• Assessing the operational efficiency of asset management firms and its correlation with fund performance

Hedge Funds

Here we explore research topics related to hedge fund operations and strategies, including their implications on corporate governance, financial market stability, and regulatory compliance among other critical facets.

• Assessing the impact of hedge fund activism on corporate governance and financial performance
• Analysing the effectiveness and implications of market-neutral strategies employed by hedge funds
• Investigating how different fee structures impact the performance and investor attraction to hedge funds
• Evaluating the contribution of hedge funds to financial market liquidity and the implications for market stability
• Analysing the risk-return profile of hedge fund strategies during financial crises
• Evaluating the influence of regulatory changes on hedge fund operations and performance
• Examining the level of transparency and disclosure practices in the hedge fund industry and its impact on investor trust and regulatory compliance
• Assessing the contribution of hedge funds to systemic risk in financial markets, and the effectiveness of regulatory measures in mitigating such risks
• Examining the role of hedge funds in financial market stability
• Investigating the determinants of hedge fund success: A comparative analysis

Financial Planning and Advisory

This list explores various research topic ideas related to financial planning, focusing on the effects of financial literacy, the adoption of digital tools, taxation policies, and the role of financial advisors.

• Evaluating the impact of financial literacy on individual financial planning effectiveness
• Analysing how different taxation policies influence financial planning strategies among individuals and businesses
• Evaluating the effectiveness and user adoption of digital tools in modern financial planning practices
• Investigating the adequacy of long-term financial planning strategies in ensuring retirement security
• Assessing the role of financial education in shaping financial planning behaviour among different demographic groups
• Examining the impact of psychological biases on financial planning and decision-making, and strategies to mitigate these biases
• Assessing the behavioural factors influencing financial planning decisions
• Examining the role of financial advisors in managing retirement savings
• A comparative analysis of traditional versus robo-advisory in financial planning
• Investigating the ethics of financial advisory practices

The following list delves into research topics within the insurance sector, touching on the technological transformations, regulatory shifts, and evolving consumer behaviours among other pivotal aspects.

• Analysing the impact of technology adoption on insurance pricing and risk management
• Analysing the influence of Insurtech innovations on the competitive dynamics and consumer choices in insurance markets
• Investigating the factors affecting consumer behaviour in insurance product selection and the role of digital channels in influencing decisions
• Assessing the effect of regulatory changes on insurance product offerings
• Examining the determinants of insurance penetration in emerging markets
• Evaluating the operational efficiency of claims management processes in insurance companies and its impact on customer satisfaction
• Examining the evolution and effectiveness of risk assessment models used in insurance underwriting and their impact on pricing and coverage
• Evaluating the role of insurance in financial stability and economic development
• Investigating the impact of climate change on insurance models and products
• Exploring the challenges and opportunities in underwriting cyber insurance in the face of evolving cyber threats and regulations

Quantitative Finance

These topic ideas span the development of asset pricing models, evaluation of machine learning algorithms, and the exploration of ethical implications among other pivotal areas.

• Developing and testing new quantitative models for asset pricing
• Analysing the effectiveness and limitations of machine learning algorithms in predicting financial market movements
• Assessing the effectiveness of various risk management techniques in quantitative finance
• Evaluating the advancements in portfolio optimisation techniques and their impact on risk-adjusted returns
• Evaluating the impact of high-frequency trading on market efficiency and stability
• Investigating the influence of algorithmic trading strategies on market efficiency and liquidity
• Examining the risk parity approach in asset allocation and its effectiveness in different market conditions
• Examining the application of machine learning and artificial intelligence in quantitative financial analysis
• Investigating the ethical implications of quantitative financial innovations
• Assessing the profitability and market impact of statistical arbitrage strategies considering different market microstructures

Treasury Management

The following topic ideas explore treasury management, focusing on modernisation through technological advancements, the impact on firm liquidity, and the intertwined relationship with corporate governance among other crucial areas.

• Analysing the impact of treasury management practices on firm liquidity and profitability
• Analysing the role of automation in enhancing operational efficiency and strategic decision-making in treasury management
• Evaluating the effectiveness of various cash management strategies in multinational corporations
• Investigating the potential of blockchain technology in streamlining treasury operations and enhancing transparency
• Examining the role of treasury management in mitigating financial risks
• Evaluating the accuracy and effectiveness of various cash flow forecasting techniques employed in treasury management
• Assessing the impact of technological advancements on treasury management operations
• Examining the effectiveness of different foreign exchange risk management strategies employed by treasury managers in multinational corporations
• Assessing the impact of regulatory compliance requirements on the operational and strategic aspects of treasury management
• Investigating the relationship between treasury management and corporate governance

Financial Technology (FinTech)

The following research topic ideas explore the transformative potential of blockchain, the rise of open banking, and the burgeoning landscape of peer-to-peer lending among other focal areas.

• Evaluating the impact of blockchain technology on financial services
• Investigating the implications of open banking on consumer data privacy and financial services competition
• Assessing the role of FinTech in financial inclusion in emerging markets
• Analysing the role of peer-to-peer lending platforms in promoting financial inclusion and their impact on traditional banking systems
• Examining the cybersecurity challenges faced by FinTech firms and the regulatory measures to ensure data protection and financial stability
• Examining the regulatory challenges and opportunities in the FinTech ecosystem
• Assessing the impact of artificial intelligence on the delivery of financial services, customer experience, and operational efficiency within FinTech firms
• Analysing the adoption and impact of cryptocurrencies on traditional financial systems
• Investigating the determinants of success for FinTech startups

Commercial Banking

These topic ideas span commercial banking, encompassing digital transformation, support for small and medium-sized enterprises (SMEs), and the evolving regulatory and competitive landscape among other key themes.

• Assessing the impact of digital transformation on commercial banking services and competitiveness
• Analysing the impact of digital transformation on customer experience and operational efficiency in commercial banking
• Evaluating the role of commercial banks in supporting small and medium-sized enterprises (SMEs)
• Investigating the effectiveness of credit risk management practices and their impact on bank profitability and financial stability
• Examining the relationship between commercial banking practices and financial stability
• Evaluating the implications of open banking frameworks on the competitive landscape and service innovation in commercial banking
• Assessing how regulatory changes affect lending practices and risk appetite of commercial banks
• Examining how commercial banks are adapting their strategies in response to competition from FinTech firms and changing consumer preferences
• Analysing the impact of regulatory compliance on commercial banking operations
• Investigating the determinants of customer satisfaction and loyalty in commercial banking

International Finance

The folowing research topic ideas are centred around international finance and global economic dynamics, delving into aspects like exchange rate fluctuations, international financial regulations, and the role of international financial institutions among other pivotal areas.

• Analysing the determinants of exchange rate fluctuations and their impact on international trade
• Analysing the influence of global trade agreements on international financial flows and foreign direct investments
• Evaluating the effectiveness of international portfolio diversification strategies in mitigating risks and enhancing returns
• Evaluating the role of international financial institutions in global financial stability
• Investigating the role and implications of offshore financial centres on international financial stability and regulatory harmonisation
• Examining the impact of global financial crises on emerging market economies
• Examining the challenges and regulatory frameworks associated with cross-border banking operations
• Assessing the effectiveness of international financial regulations
• Investigating the challenges and opportunities of cross-border mergers and acquisitions

Choosing A Research Topic

These finance-related research topic ideas are starting points to guide your thinking. They are intentionally very broad and open-ended. By engaging with the currently literature in your field of interest, you’ll be able to narrow down your focus to a specific research gap .

When choosing a topic , you’ll need to take into account its originality, relevance, feasibility, and the resources you have at your disposal. Make sure to align your interest and expertise in the subject with your university program’s specific requirements. Always consult your academic advisor to ensure that your chosen topic not only meets the academic criteria but also provides a valuable contribution to the field. 

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Capital Markets

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• WORKING PAPERS

Academic research can provide insights into various aspects of capital markets, including the role of institutional investors or accounting standards, and the impact of financial regulations or macroeconomic factors. More specific examples include studies on the impact of insider trading on bond prices, the role of voluntary disclosure in stock liquidity, the valuation of unfunded pension liabilities, and the relationship between executive compensation and short-termist behavior in speculative markets.

Other studies claim that the Dodd-Frank Act led to a decrease in credit default swaps (CDS) liquidity and an increase in their pricing, suggesting that the regulation has had unintended consequences on capital markets, and that private equity funds are able to generate higher returns than public equity funds, and that the growth of private equity has led to changes in the way public equity markets operate, such as a decrease in the number of public companies and a shift towards longer holding periods for public equity investments, and that stock returns are positively correlated with real economic activity and negatively correlated with inflation and interest rates.

To find out what the research tells us, explore the many papers in our series: 

https://www.ecgi.global/categories/markets 

Sticky Charters? The Surprisingly Tepid Embrace of Officer-Protecting Waivers in Delaware

This article investigates the reaction to a much-heralded 2022 legal reform in Delaware that permitted a corporation’s charter to exculpate its...

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Nevada v. Delaware: The New Market for Corporate Law

For decades and decades, Delaware has been the undisputed leader in the market for corporate law. And yet, it is now clear that Delaware’s superiority...

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Derogations from the mandatory bid rule

The EU Takeover Bids Directive was passed twenty years ago with the main objective of promoting a single European takeover market. The primary mechanism...

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How Did Corporations Get Stuck in Politics and Can They Escape?

Corporations have always been involved in politics, but today is different. They are publicly taking positions, either directly or indirectly, on...

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What Are Capital Markets?

• How They Work

Primary vs. Secondary Markets

• Capital Markets FAQs

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• Corporate Finance
• Corporate Finance Basics

What Are Capital Markets, and How Do They Work?

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Capital markets are where savings and investments are channeled between suppliers and those in need. Suppliers are people or institutions with capital to lend or invest and typically include banks and investors . Those who seek capital in this market are businesses, governments, and individuals. Capital markets are composed of primary and secondary markets. The most common capital markets are the stock market and the bond market. They seek to improve transactional efficiencies by bringing suppliers together with those seeking capital and providing a place where they can exchange securities.

Key Takeaways

• Capital markets refer to the venues where funds are exchanged between suppliers and those who seek capital for their own use.
• Suppliers in capital markets are typically banks and investors while those who seek capital are businesses, governments, and individuals.
• Capital markets are used to sell different financial instruments, including equities and debt securities.
• These markets are divided into two categories: primary and secondary markets.
• The best-known capital markets include the stock market and the bond markets.

Investopedia / Yurle Villegas

Understanding Capital Markets

The term capital market is a broad one that is used to describe the in-person and digital spaces in which various entities trade different types of financial instruments . These venues may include the stock market, the bond market, and the currency and foreign exchange (forex) markets. Most markets are concentrated in major financial centers such as New York, London, Singapore, and Hong Kong.

Capital markets are composed of the suppliers and users of funds. Suppliers include households (through the savings accounts they hold with banks) as well as institutions like pension and retirement funds, life insurance companies, charitable foundations, and non-financial companies that generate excess cash. The users of the funds distributed on capital markets include home and motor vehicle purchasers, non-financial companies, and governments financing infrastructure investment and operating expenses. 

Capital markets are used primarily to sell financial products such as equities and debt securities. Equities are stocks, which are ownership shares in a company. Debt securities , such as bonds, are interest-bearing IOUs.

These markets are divided into two different categories:

• Primary markets where new equity stock and bond issues are sold to investors
• Secondary markets , which trade existing securities

Capital markets are a crucial part of a functioning modern economy because they move money from the people who have it to those who need it for productive use.

Primary Market

When a company publicly sells new stocks or bonds for the first time, such as in an initial public offering (IPO), it does so in the primary capital market. This market is sometimes called the new issues market. When investors purchase securities on the primary capital market, the company that offers the securities hires an underwriting firm to review it and create a prospectus outlining the price and other details of the securities to be issued.

All issues on the primary market are subject to strict regulation. Companies must file statements with the Securities and Exchange Commission (SEC) and other securities agencies and must wait until their filings are approved before they can go public.

Small investors are often unable to buy securities on the primary market because the company and its investment bankers want to sell all of the available securities in a short period of time to meet the required volume, and they must focus on marketing the sale to large investors who can buy more securities at once. Marketing the sale to investors can often include a roadshow or  dog and pony show , in which investment bankers and the company's leadership travel to meet with potential investors and convince them of the value of the security being issued.

Secondary Market

The secondary market includes venues overseen by a regulatory body like the SEC where these previously issued securities are traded between investors. Issuing companies do not have a part in the secondary market. The New York Stock Exchange and Nasdaq are examples of secondary markets.

The secondary market has two different categories: the auction and the dealer markets . The auction market is home to the open outcry system where buyers and sellers congregate in one location and announce the prices at which they are willing to buy and sell their securities. The NYSE is one such example. In dealer markets, though, people trade through electronic networks. Most small investors trade through dealer markets.

Are Capital Markets the Same as Financial Markets?

While there is a great deal of overlap at times, there are some fundamental distinctions between these two terms. Financial markets encompass a broad range of venues where people and organizations exchange assets, securities, and contracts with one another, and are often secondary markets. Capital markets, on the other hand, are used primarily to raise funding, usually for a firm, to be used in operations, or for growth.

What Is a Primary vs. Secondary Market?

New capital is raised via stocks and bonds that are issued and sold to investors in the primary capital market, while traders and investors subsequently buy and sell those securities among one another on the secondary capital market but where no new capital is received by the firm.

Which Markets Do Firms Use to Raise Capital?

Companies that raise equity capital can seek private placements via angel or venture capital investors but are able to raise the largest amount through an initial public offering when shares list publicly on the stock market for the first time. Debt capital can be raised through bank loans or via securities issued in the bond market.

Capital markets are a very important part of the financial industry. They bring together suppliers of capital and those who seek it for their own purposes. This may include governments that want to fund infrastructure projects, businesses that want to expand, and even individuals who want to buy a home. They are divided into two different categories: the primary market where companies list new issues for the first time and the secondary market, which allows investors to purchase already-issued securities. The key benefit to these markets is that they allow money to move from those who have it to those who need it for their own purposes.

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The aftermath of the 2009 financial crisis illustrated the need to improve the transparency and accountability of the financial sector both within national boundaries and jurisdictions. The crisis also called into sharp relief the need for government regulations to be more efficient and adept in responding to ...

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• Accounting comparability and relative performance evaluation by capital markets
• Competing for narrative authority in capital markets: Activist short sellers vs. financial analysts
• Capital market liberalisation and voluntary corporate social responsibility disclosure: Evidence from a quasi-natural experiment in China
• Diversity of signing auditors and audit quality: Evidence from capital market in China
•  Market misvaluation and corporate innovation:“Catering” or “risk aversion”?—Empirical evidence from China capital market
• Human Capital, Market Environment, and Firm Innovation in Chinese Manufacturing Firms
•  … and voluntary disclosures in annual reports: a post-International Financial Reporting Standard adoption evidence from an emerging capital market
• Compliance, defiance, and the dependency trap: International Monetary Fund program interruptions and their impact on capital markets
• The relationship between dividend policy and earnings quality: The role of accounting information in Indonesia’s capital market
•  CONTRIBUTION TO TESTING THE EFFICIENCY OF THE CROATIAN CAPITAL MARKET
• Understanding and Interest in Sharia Capital Market Investment of PTKIN And PTKIS Students
•  Understanding the Polish Capital Market: From Emerging to Developed
• The diffusion of innovation theory and the effects of IFRS adoption by multinational corporations on capital market performance: a cross-countryanalysis
• The Role of Internal Capital Market in Business Groups
• Interconnectedness between convertible bonds and underlying stocks in the Chinese capital market: A multilayer network perspective
• Capital market liberalization and auditors’ accounting adjustments: Evidence from a quasi-experiment
• How do environmental policies affect capital market reactions? Evidence from China’s construction waste treatment policy
• The joint macroeconomic impacts of capital markets integration and fertility
• The role of disclosure and information intermediaries in an unregulated capital market: evidence from initial coin offerings
• Does integrated reporting quality matter to capital markets? Empirical evidence from voluntary adopters
• The Role of Islamic Finance in the Capital Market in Uzbekistan
•  Marijuana Liberalization and Public Finance: A Capital Market Perspective on the Passage of Medical Use Laws
• Corporate Sustainability and Risk Management—The U-Shaped Relationships of Disaggregated ESG Rating Scores and Risk in the German Capital Market
• The spatial reach of financial centres: An empirical investigation of interurban trade in capital market services
• Covid-19 pandemic and its effect on capital market development: A literature review
• The essential role of accounting information in the capital markets: updating seminal research results with current evidence
• Monetary transmissions mechanism for Islamic capital markets: evidence from Markov switching dynamic regression approach
• The Digitization of Islamic Philanthrophy In the Islamic Capital Market in Indonesia
• BRICS Capital Markets Co-Movement Analysis and Forecasting
• Information acquisition and voluntary disclosure with supply chain and capital market interaction
•  GAS FuTuRES AS A FACTOR OF THE uKRAINIAN CAPITAL MARKET DEVELOPMENT
• Non-GAAP reporting and capital markets: contrasting France and Canada
• The Contours of a Cliophysics. How Can Econophysics Enrich Cliometrics? Case Studies in Debt Issues and Global Capital Markets
• The role of parent firms in business groups’ internal capital markets
• An analysis of the SEC’s drive to bring IFRS to US capital markets
•  How Do The Macroeconomic Determinants Underpin The Capital Market Development In North Macedonia?
• Enhancing the efficiency of governmental intervention in the venture capital market: The monitoring effect
• Development of Android-Based Interactive Media Learning Economics Capital Market Materials
•  An analytical method for the assessment of asset price changes in capital Market
• Cash holdings, the internal capital market, and capital allocation efficiency in listed companies
•  Cloud economy and its relationship with China’s economy—a capital market-based approach
• Empirically Investigating the Disclosure of Nonfinancial Information: A Content Study on Corporations Listed in the Saudi Capital Market
•  Influences of Taiwan’s corporate social responsibility report management policy on the information transparency of its capital market
• Portrait of equity risk premium in Indonesia capital market period 1990–2022
• Knowledge for Investment in Islamic Capital Market and Islamic Stocks for The Young Generation to Mitigate Fraudulent Investment
• Determinants Of Capital Market Investment Interest In The Millenial Generation In The Covid-19 Pandemic
• FinTechs, BigTechs and structural changes in capital markets
• Postfundamentals price drift in capital markets: A regression regularization perspective
• Capital market opening and green innovation——Evidence from Shanghai-Hong Kong stock connect and the Shenzhen-Hong Kong stock connect
•  Investor Inclinations towards Capital Market: Recursive Analysis, Causes, and Factors
•  Capital markets and valuation models of investment properties. A pre and post crisis analysis: Mercados de capitales y modelos de valoración de inversiones …
• The Effect of Social Media Information on Intention to Invest in Indonesia Capital Market: Case of Generation Y
• Determinants of Investment Decisions in the Capital Market During the COVID-19 Pandemic
• Foreign Institutional Ownership and Its Impact on Investment Efficiency in Manufacturing Firms: Evidence from Indian Capital Market
•  Tail risk early warning system for capital markets based on machine learning algorithms
• Internal capital markets, corporate investment, and the COVID-19 pandemic: Evidence from Korean business groups
• Capital market reactions to project finance loans
• Capital-Market Liberalization and Controlling Shareholders’ Tunneling—Experimental Research in the Context of “Mainland China-Hong Kong Stock Connect”
•  Does a currency union need a capital market union?
• Geographic Proximity and Information Efficiency of Capital Market: Evidence from China
• The process of transferring negative impulses in capital markets–a wavelet analysis
•  On the Behavior of the Spanish Capital Market
•  Capital markets for cities
• Capital Market Consequence of Institutional Investment Constraint: Evidence from the Stock Price Crash Risk in China
• The fit of dividends on investment decisions in the Vietnam capital market
•  Workforce and earnings management: Evidence in the Brazilian capital market
•  Underpricing in a Capital Market: Case of Latvia
• Systematic risk of ESG companies listed on the Polish capital market in 2019-2022
• Empirical analysis of the impact of pension funds as institutional investors on the capital market
• Analysis of a five-factor capital market model
•  Streamlining Investors’ Perceptions and the Behaviour of Capital Market Returns Around the World
• Impact of ESG on capital market transformation
•  Study on the Correlation of Capital Market and Macroeconomic Indicators of Romania
• Present the proposed model of investment security in the Iranian capital market
• Integration as an Indicator of (under) Development of the Croatian Capital Market
• Revenue forecasting for European capital market-oriented firms: A comparative prediction study between financial analysts and machine learning models
• Is fair value information fairly priced? Evidence from IPOs in global capital markets✰
• The capital market consequences associated with classifying unrealized gains and losses on available-for-sale (AFS) equity securities in GAAP net income
• THE EFFECT OF INVESTMENT KNOWLEDGE, RETURN, AND SOCIAL MEDIA ON CAPITAL MARKET INVESTMENT AND THE PROGRESS OF THE MILLENNIUM …
•  Measuring the relative development and integration of EU countries’ capital markets using composite indicators and cluster analysis
• Media Conglomeration, Local News, and Capital Market Consequences
• Recent issues in Indian Capital Market-A Study
• Capital market distortion, agricultural producer service and wage inequality in the small-scale agriculture
• HR Metrics and Quality of Hire in Human Capital Market: A Case Study
• Making the municipal capital market in nineteenth-century England
• The Impact of Islamic Capital Market Literacy, Financial Behavior, and Income on the Interest to Invest in Islamic Capital Markets among Generation Z
• Development Of Investment Banking Model In Capital Market
•  Providing a Micmac Analysis to Strengthen Sustainable Green Accounting Values of Capital Market Companies: Polar Matrix Analysis
• Capital Market and Economic Lessons from 2022-Unspirational Speaking (Sections 1 &Amp; 2)…. Thoughts from Recent Presentations…. European Disunion and …
•  Product Market Competition and Debt Choice: A Study on Cement Companies Enlisted in Capital Market in Bangladesh
• Uniformity and comparability: an analysis of the relevance for the Brazilian capital market
• Does Regulation Impact the Initial Returns of Initial Public Offerings? Evidence from Indian Capital Market
• An Empirical Analysis of the Relationship Between Capital, Market Risks, and Liquidity Shocks in the Banking Industry.
• Public-Private Co-Regulation in the making of the capital markets union
• The influence of the board of directors and the auditor in the disclosure of derivative financial instruments: Evidence on Portuguese capital market
•  The Impact of Cryptocurrency over the Turkish Capital Market: A Case Study of Bitcoin (BTC)
•  The Essentials of Islamic Banking, Finance, and Capital Markets
•  ESG PERFORMANCE AND VALUE RELEVANCE OF ACCOUNTING INFORMATION: EVIDENCE FROM CHINESE CAPITAL MARKET
• Capital market performance and macroeconomic dynamics in Nigeria
•  A Stochastic Analysis of Stock Market Price Fluctuations for Capital Market
• The Role of Capital Market on Industrial Development in Nigeria
• Venture capital research in China: Data and institutional details
•  Developing a Behavioral Model of Individual Investors’ Decision-making in the Iranian Capital Market
•  The Effect of Financial Literacy and Knowledge of Capital Market on Intention to Invest on Islamic Stock Exchange
• Chinese Capital Market and Yuan SDR Exchange Rate
•  Islamic Capital Markets: The Structure, Formation and Management of Sukuk
•  Proposing a model for assessing Herding behavior in the Iranian capital market using meta-heuristic algorithms
• Uniformity and comparability: an analysis of the relevance for the Brazilian capital market.
•  Determinants of Capital Structure: Empirical Study of Consumer Goods Listing Firm in Indonesia Capital Market
•  IFRS adoption and accounting-based performance measures: evidence from an emerging capital market
• Impact of Capital Market Events on Market Efficiency
• The Spillover Effect of Advertising on the Capital Market: Evidence from Financial Constraints
• COVID-19, Government Policies and their effects on Latin American Capital Markets
• Three Essays on Regulation and Capital Market Dynamics
•  The Impact of China’ s Capital Market Opening Up to the Domestic Stock Idiosyncratic Risk
• International capital markets and domestic employment: Evidence from worldwide publicly listed large firms
• Student Interest In Investing In Sharia Capital Market: What Is The Influence Of Product Information?
•  Requirements of Performance Management System of Generation Z Employees in the Capital Market: A Thematic Analysis Approach
• Capital Market And Money Market One Alternatives For Family Financial Management During The Covid-19 Pandemic In The Community Of Cawang Kelurahan …
• Designing a Decision Support System for Capital Markets
• Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?
•  Socially responsible investing as the direction of capital market development
• Capital Market Reaction to The Tax Amnesty Policy (Study on Banking Sector Share in Indonesia)
• The Analysis on the Relation Between CUSIP Data and Macroeconomic Financial Factors and Its Correlation to the Capital Markets
• Institutional voids, capital markets and temporary migration
• Capital Markets’ Development: Are African Countries Lagging?
• Designing a Model for Social Trading Platforms in Irans Capital Market
• Marijuana Liberalization and Public Finance: A Capital Market Perspective on the Passage of Medical Use Laws
• Research methods
• INDONESIAN CAPITAL MARKET CONTRACTION USE OF COLLECTIVE VACCINESCOVID-19 PANDEMIC TIME
•  The Effect of Hosting a Super Bowl on Local Debt Capital Markets.
• Analyzing the efficiency of capital market relative to the decreas-ing and increasing information of the components of accounting earnings
•  PROSPECTS FOR EXTENSIVE DEVELOPMENT OF THE CAPITAL MARKET
•  The Value of the Capital Market Development-Bursa Research Scheme’s (CBRS) Recommendation Changes in the Malaysian Stock Market
• Effect of Market Analysis on Capital Market Development in Nigeria
•  Do Female CFOs Reduce Disclosure Violations in Listed Companies? Empirical evidence from China’s capital market
• The Role of Dhaka Stock Exchange Ltd. in Bangladesh Capital Market
•  BRICS Capital Markets Co-Movement Analysis and Forecasting. Risks 10: 88
• Information Flow in Capital Markets-Novel empirical evidence on information processing in financial markets and the role of behavioral biases
• Does employee representation affect corporate investment efficiency? Evidence from China’s capital market
• Access to public capital markets and the extension of trade credit: An empirical analysis of Korean public and private firms
• The role of capital markets in saving the planet and changing capitalism-just kidding
• Simultaneous Information Releases and Capital Market Feedback
• PROSPECTS FOR THE DEVELOPMENT OF THE LEGAL SYSTEM OF THE CAPITAL MARKET IN UZBEKISTAN
•  STOCK MARKET INTEGRATION: A STUDY OF INDIAN STOCK MARKET WITH FOREIGN CAPITAL MARKETS
• Analysis of global trends in the european venture capital market
• The Capital Market Response to the Information Content of the Announcement of Indonesia Entering a Recession in 2020 and Free of Recession in 2021 in the Covid …
• Providing a behavioral model for measuring the stock price bubble in the capital market
• The Covid Pandemic Testing the Resilience of the United States, China and Indonesia Capital Markets
•  Intellectual Property Securitization, A Comparative‎ study with the US Capital Market
• The Ease of Investing in Indonesia’s Capital Market Based on Improved Financial Literacy, Investment Community and Capital Market School
• A Conceptual and Descriptive Approach to Capital Market Progression in a Developing Country: The Nigerian Perspective
• Modern Paradigm Regarding Capital Markets: Fractal Market Hypothesis. Determination of the Hurst Exponent on the Romanian Capital Market
• Impact of Political Risk and Capital Market Development on Dividend Policy: Evidence from Pakistan Stock Exchange
• ESSAYS ON FINANCIAL INTERMEDIARIES IN CAPITAL MARKET
• Tone of market participants’ opinions via social media and capital market reaction
• Animal Behavior in Capital Markets: Herding Formation Dynamics, Collective Interest, and the Role of a Predator
•  MAKING CAPITAL MARKETS WORK FOR AFRICA: INTERROGATING PROGRESS, CHALLENGES AND THE PURSUIT OF INTEGRATION
•  The Role of Islamic Finance in the Capital Market in Uzbekistan
•  From NGEU to a Green Capital Markets Union1
• Guarantees of Applying Disclosure and Transparency on the Companies Listed in the Saudi Capital Market
• A framework for identifying the factors affecting the promotion of the Iranian capital market
• Evaluation of Intelligent and Statistical Prediction Models for Overconfidence of Managers in the Iranian Capital Market Companies
• Effect of Foreign Direct Investment on Capital Market Development in Nigeria
• The Impact of Implementation of The Community Activity Restrictions Policy on The Reaction of The Capital Market in Indonesia Especially in LQ45 Companies
•  Capital Market, Economic Growth and Industrialization in Nigeria (2000–2016)
• Workforce and earnings management: Evidence in the Brazilian capital market.
• Three essays on international capital markets
• The effect of investment motivation and investment knowledge towards investment interest in capital market in FEB UNHAS students
• Effect of Risk Perception, Problem Framing, Risk Propensity, and Information Asymmetry to the Investment Decision in Capital Market
• Do Tax Incentives Affect Internal Capital Market Efficiency? Evidence from the Addback Statutes
• Impact of Portfolio Risk on Capital Market Development in Nigeria
•  Effect of Pensions on the Capital Market
• STATE OWNED ENTERPRISES AND CAPITAL MARKET IN CIS COUNTRIES
•  Globalization and the Development of the Nigerian Capital Market
• Application of the principle of conservatism against the application of the fair value concept: An example of the Serbian capital market
• Capital Markets and Corporate Governance Standards
• Capital Markets Development and Economic Growth in North Africa
• A CRITICAL REVIEW OF THE DEVELOPMENT OF CAPITAL MARKETS IN INDIA
• Sustainable Finance in Global Capital Markets
• Pathology of existing procedures for dealing with capital market crimes and providing solutions for improvement
• Global commodities and capital markets under pressure from the practice of politically motivated economic sanctions: Russia 2022
• Effect of Contributory Pension Funds on Capital Market Performance in Nigeria
• Finance Capital, Market, and Policy
• The Practical Dilemma and Improvement of the Accountability System of the Capital Market–The Necessity of Accurately Defining the Subject of Responsibility
• International Capital Markets and Wealth Transfers
• The Macroeconomic-Based Systemic Risks and Bad Loans of Commercial Banks Listed in the Indonesian Capital Market
• The effect of investment understanding, risk perception, income, and investment experience on investment behavior on capital market investors in Klaten District
• Implementation Sharia Principles and Development of National Law In Sharia Share Trading In Indonesian Capital Market
•  PRACTICES OF PUBLIC OFFERING OF STOCKS IN CAPITAL MARKET DEVELOPMENT: FOREIGN EXPERIENCE AND SPECIFICATIONS
•  SCOPE CONFIRMATION EXERCISE (SCE): A PRE-PROJECT EXERCISE TO ENSURE A SUCCESSFUL CAPITAL MARKET FINTECH PROJECT.
• Analysis of Digital Infrastructure Development for the Indonesian Capital Market
• Empirics of Capital Market, Unemployment and Economic Growth in Selected Sub-Sahara African Economies
•  UNFAIR DILUTION IN THE LEGAL PERSPECTIVE OF CAPITAL MARKET IN INDONESIA
• Effective Capacity Planning of Capital Market IT System: Reflecting Sentiment Index
• Changes in Ownership Breadth and Capital Market Anomalies
•  Essays on Public Communication and Economic Incentives in Capital Markets
• Application of Quantitative Methods in Asset Allocation Based on the Chinese Capital Market
• Charting the Indefatigable Rise of Public Regulation of the Investment Management Industry-Forthcoming in Elgar Research Handbook on Global Capital Markets
• Analysis of the Effect of Financial Indicators and Ratio Sharia Banking on Capital Market
• Efficient Venture Capital Market
• Capital market development over the long run: the portfolios of UK life assurers over two centuries
• The impact of management accounting systems on development of intellectual capital dimensions by emphasis on business intelligence in Iran capital market
• Interpretive Evaluation of Green Audit Quality in Presence of Sustainable Reporting Readability Themes of Capital Market Companies
•  MACROECONOMIC FACTORS’EFFECTS ON THE PERFORMANCE OF THE NIGERIAN CAPITAL MARKET
• Corporate Governance and Financial Risk Disclosure: Empirical Evidence in the Portuguese Capital Market
•  Capital Market and Banking Sector Growth: Evidence from Nigeria
• Corporate Responsibility in Protecting Public Shareholders When the Company is Removed from Capital Market (Case Example: Company Code INVS)
• Assess the Usefulness of Financial Reporting: How to Reconcile the Inconsistence between Financial Reporting and Capital Market Participants
• The Use and Usefulness of Big Data in Capital Markets
• Issues and Proposals on the Provisions of Irregularities Regulated in the Capital Markets Law (Art. 112/2) in Terms of Forgery in Private Documents
• … of the combination of dual price and fundamental momentum in companies with different fundamental levels for the strategy of winners and losers of the capital market
• Financial Markets: Banks and Capital Markets
• Analysis of Investment Interest in the Capital Market in Management Students of the Faculty of Economics and Business Upn” Veteran” East Java
•  Crimination of Fraud Crimes in Capital Market Transactions
• Spotlight 5.1: Greening capital markets: Sovereign sustainable bonds
•  Effect of Fraudulent Practices on Market Capitalization of the Nigeria Capital Market.
• On the Effects of Capital Markets’ Regulation on Price Informativeness: an Assessment of EU Market Abuse Directive
• The Influence of Social Media Influencer on Students’ Interest in Investing in the Capital Market
• Nepal’s extant observation: Fostering capital markets for economic growth
• Stock Ownership Structure and Capital Structure in Tax Reform: Evidence from Indonesian Capital Market
•  THE RELATIONSHIP BETWEEN CAPITAL MARKET DEVELOPMENT AND ECONOMIC GROWTH: A MACEDONIAN OUTLOOK
• Corporate Environmental Information Disclosure and Investor Response: Empirical Evidence from China’s Capital Market
• Impact of Equity Issuance Digitalization on Capital Market Development in Nigeria
• Corporate Financing Mode (12)—Multilevel Capital Market
• Provide hybrid model for forecasting financial crises based on free cash flow: evidence from the capital market
• INVESTING IN SHARIA CAPITAL MARKET IN INDONESIA
•  A MODEL OF AUDIT COMMITTEE PERFORMANCE EVALUATION IN IRAN CAPITAL MARKET
•  Strategic approach to analyze the effect of Covid-19 on the stock market volatility and uncertainty: a first and second wave perspective
• Access to Capital Markets and the Geography of Productivity of Leaders and Laggards
• The Impact of Investor and Managers’ Behavioral Bias on the Stock Price Bubble in capital market of Iran
•  The Effect of Financial Literation on Investing in Indonesia Capital Market (Study on College Students in Bandung City, Indonesia)
• Does the swap-covered interest parity still hold in long-term capital markets after the financial crisis? Evidence from cross-currency basis swaps
•  CONNECTIONS BETWEEN CAPITAL MARKET AND FORWARD GUIDANCE OF THE MONETARY POLICY
• Peningkatan Millenial Anti Bokek melalui capital market investment for beginners pada Siswa MAN 2 Magetan
•  EFFECT OF FINANCIAL LITERACY, EXPECTED RETURN, CAPITAL MARKET TRAINING, AND MINIMUM CAPITAL INVESTMENT ON BUYING INTEREST IN …
• Effect of Inflationary Trends on Capital Market Performance of Fast-Moving Consumer Goods Companies in Nigeria
• Impact of Capital Market Efficiency Based on the Theory of Limitation on the Total Return on Stock Rates
• VENTURE CAPITAL FINANCING IN THE INDIAN CAPITAL MARKET
•  ANALYSIS OF CAPITAL MARKET REACTION TO THE ANNOUNCEMENT OF THE MINISTER OF FINANCE REGULATION (PMK) NUMBER 20/PMK. 010/2021 …
• State-owned enterprises’ political capital, city administrative rank and economic resources acquisition: Empirical evidence from Chinese capital markets
• INFLUENCING FACTORS OF SHORT-AND LONG-TERM RETURNS ON IPOS IN THE CHINESE AND THE US CAPITAL MARKETS: A SYSTEMATIC LITERATURE
•  VALUE RELEVANCE OF ACCOUNTING INFORMATION IN NIGERIAN CAPITAL MARKET
• Application of Financial Statement Analysis of PT. Astra International, Tbk Towards Novice Investor Decision Making in the Indonesian Capital Market
•  Influence of Banking Sector Reforms on the Capital Market
• Has the Evergrande Debt Crisis Rattled Chinese Capital Markets? A Series of Event Studies and Their Implications
• Analysis of the Application of Sharia Principles in the Development of Sharia Capital Market (Case Study of the Indonesia Stock Exchange, North Sumatra …
•  ACHIEVING SELF-SUSTAINABILITY OF VENTURE CAPITAL MARKET IN LATVIA
• Analysis of Factors Affecting Public Interest in Investing in the Capital Market (Case Study on the Paluta Community)
• Optimization of Stock Portfolio Selection in Iran Capital Market Using Meta-heuristic Algorithms
•  Analysis of the Government and Capital Market’s Response to Normalized Epidemic Prevention and Control Based on the Development of Smart Health Care
• ESG Risk Disclosure and Earning Timelines in the Mexican Capital Market Using Fuzzy Logic Regression
•  THE EFFECT OF INVESTOR BEHAVIORS AND ATTITUDES ON CAPITAL MARKETS
•  Exploring the Nexus between Corruption and all share index of Nigeria Capital Market
• The THE CAPITAL MARKET HIPOTHESIS: TESTING SEMI-STRONG FORM MARKET EFFICIENCY ON INDONESIA STOCK EXCHANGE
• Angels: personal investors in the venture capital market
•  Retail Investor Decision Making in SME IPOs in Indian Capital Market: A Qualitative Analysis
• Extracting Factor Loadings from Capital Market Assumptions: What Is Embedded in Forecast Hedge Fund Returns?
•  Does multiple capitals disclosure affect the capital market? An empirical analysis in an integrated reporting perspective
•  Voluntary Risk Disclosure and Investor’s Behaviour in the Nigerian Capital Market Sunday A. Okpo
•  Three Essays on Information Frictions and the Integration of International Capital Market
• Comparison of the effect of using corporate governance mechanisms on the performance of companies based on Ponzi trap (Case study: Tehran Capital Markets …
• EARNINGS MANAGEMENT AND INVESTOR REACTION: THE CASE OF IRAN’S CAPITAL MARKET USING GAME THEORY
•  Determination of the Fractal Character of the Romanian Capital Market by Using Hurst Exponent
•  New Capital Market in the Light of Sixth Development Plan Law (Functionality of blockchain technology in the capital market)
• Contratum dominance over momentum and reverse: Evidence from the Iranian capital market
• An Evaluation of Financial Performance of Merchant Banking Activities of SBI Capital Markets Limited
• A Comparative Study on the Performance of select Initial Public Offerings (IPOs) in Indian Capital Market in the Pre-Covid and Covid Period
• The South East Asia Capital Markets: 1995-2015
• Reform of IPO Registration System Injects New Vitality into China’s Capital Market
• Impact of Recent Developments in Global Capital Markets on Indian Capital Markets
• Stock Markets as a Lever for Growth in Central Africa: The Case of’Central African Capital Market'(BVMAC)
• Investigating the moderating effect of board characteristics on the relationship between effective tax rates and company value in the Iranian capital market
•  Saving, Investment, and Capital markets in developing countries: A look at Nepal and Tanzania
•  A STUDY ON INDIAN CAPITAL MARKET OF BUILDING AN OPTIMAL EQUITY PORTFOLIO USING SHARPE SINGLE INDEX MODEL
•  MODELLING THE ASYMMETRIC AND SYMMETRIC CONDITIONAL VOLATILITY AND THEIR PERFORMANCE IN THE NIGERIAN CAPITAL MARKETS
•  Enhancing the efficiency of Arab capital markets by implementing corporate governance
•  Supervision of Private Banks by Iran’s Capital Market Regulatory Bodies from the Perspective of Transparency and Efficiency as the Principles of Public Law
• Problematic analysis on indicators of impact on business rumors in the capital market (Case study: Shahr Bank)
• THE EFFECTS OF BREXIT ON THE UK CAPITAL MARKETS
• The Effect of Financial Literacy, Risk Tolerance, and Qanun Number 11 of Islamic Financial Institution on Interest Investment in Banda Aceh Sharia Capital Market
• The Capital Market Consequences of Tenure-Based Voting Rights: Evidence from the Florange Act
• The Future of USD and the Global Capital Markets
•  A g Theory of Internal Capital Markets
• Foreign Investment and Evidence of Market-Wide Herding in the Turkish Capital Markets
• Big Oil in the Transition or Green Paradox? A Capital Market Approach
• Optimal analysis of valuation of petrochemical stock in the capital market by Total Interpretive Structural Model
• Empirical Analysis of the Correlations between Chinese Capital Market Development and Economic Growth
•  Analysts’ Forecast Revision and Capital Market Information Efficiency
• The Dynamic Impact of Financial Disintermediation on Credit Business of Chinese Commercial Banks Macro Data from China’s Capital Market
•  Exchange Rates and International Capital Markets (Summer semester 2022)
• Designing and Evaluating Trading Strategies Based on Algorithmic Trading in Iran’s Capital Market
•  Determinants of Company Going Concern: Empirical Evidence in the Times of Covid-19 in Developing Capital Markets
•  ANALYSIS OF OIL REVENUE AND THE NIGERIAN CAPITAL MARKET: A VECTOR AUTOREGRESSION APPROACH
• A Costly Mistake for Investors, US Capital Markets, and Growth: Evidence from the Exclusion of Dual-Class Stocks from Popular Indices
•  Continued Acceleration of the Reform of China’s Capital Markets Still Needed
• Regulating the Capital Markets: Making Market Discipline Work
• Tapping local capital markets for water and sanitation: the case of the Kenya Pooled Water Fund
• Swiss withholding tax and stamp duty reform strengthens the debt capital market
• The foundation of the European Capital Markets Union (CMU): From the 2015 to the 2020 CMU Action Plan and their implementation
•  Does the Value Relevance of Accounting Information Mediate Sustainability Reporting Disclosures: Empirical Evidence of Indonesian Capital Market.
• Audit Planning: Does Industry Data Analysis Affect Audit Timeliness? Study on Indonesian Capital Market
• Capital-Market Relationships: The Myths of Shareholder Wealth Maximization
•  Design and Evaluation of Robo-Advisors Using Index Fund and Alternative Assets of Cryptocurrency and Gold: Case of Indonesian Capital Market
•  Stock market development and agricultural growth of emerging economies in Africa
•  Capital Market Liberalization and Enterprise Labor Income Share: A Quasi-natural Experiment Based on “Shanghai-Hong Kong Stock Connect” Scheme
•  The Enduring Tension Between the Family Owners and the Atomistic Absentee Owners in Canada: How the Capital Market Regulations Allow for the Abusive …
• Venture Capital Law in China. By Lin Lin.[Cambridge University Press, 2021. xv+ 340 pp. Hardback£ 85.00. ISBN 978-11-08528-79-5.]
• Capital Outflow Restrictions and Dollar Drainage
• The Impact of Switching from NEEQ to Higher-level Capital Markets on Corporate Innovation of High-tech Enterprises: Evidence from the Perspective of Financial …
•  Asia’s landlocked developing countries–developmental challenges, financing needs, and the potential contribution of capital markets
• Firm-level investment under imperfect capital markets in Ukraine
• How bad is a bad loan? Distinguishing inherent credit risk from inefficient lending (Does the capital market price this difference?)
• Beijing Stock Exchange and Multi-Tier Capital Markets: How China Alters Share Listing and Trading Rules to Promote SME Finance?
•  A comparison of international market indices for measuring market efficiency based on price-volume relationship
• Research on the impact and path of economic policy uncertainty on the cost of equity capital
• Impact of terrorism on stock market: Evidence from developed and developing markets
• Venture Capital as a Factor of Innovative Economic Development
• CAPITAL MARKET AND ENGLISH COMPETENCY IN ACCOUNTING STUDENT’S PERSPECTIVE DURING PANDEMIC COVID-19
• … dengan Menggunakan Metode Information Ratio= Analysis of the Performance of Islamic Mutual Funds in the Indonesian Capital Market using the Information Ratio …
• Does market-oriented reform make the industrial sector “Greener” in China? Fresh evidence from the perspective of capital-labor-energy market distortions
• The Capital Markets
• Does distorted allocation of capital factors inhibit green technology innovation in Chinese cities? An empirical analysis based on spatial effect
• The EMU Rationale for Capital Markets Union
•  Identification and ranking the criteria for measuring the risk of companies for listing in the capital market
• Capital Markets and Media Firms
• Stocks, Stock Markets, and Stock Indices
• Do networks matter? Social capital and public investors-the Austrian perspective
•  Frequency Domain Analysis of Nigeria All Share and Capital Index from 1989-2010 (A Case Study of Nigerian Stock Market)
• Effects of Venture Capital Mega-Deals on IPO Success and Post-IPO Performance
•  A tőkepiaci és az egészségügyi válság összehasonlítása, kkv-kat érintő válságkezelő intézkedések= Comparison of Capital Market Crisis and Health Crisis …
• “Pennies from heaven”? Market failure, circuits of capital and policy support for business angels: The case of cross-border angel investment
•  Investigating the Effects of Error Management on Capital Market Pressure in Companies Listed on the Tehran Stock Exchange
• Cross-Border Venture Capital Valuation: Business-Cycle, Institutional Factors, and Distance
•  Capital Markets Transactions and Counterparty Credit Risk
• Does Public Policy towards Venture Capital Promote Local Innovation? Evidence from China’s Establishment of Fund Town
• Atuação no Mercado de Capitais (Participation in the Capital Markets)
• The relationship between capital structure and firm performance: New evidence from Pakistan
•  Co-movement and causal relationships between conventional and Islamic stock market returns under regime-switching framework
• The Impact of Matching Degree Between Financial Development and Capital Account Liberalization on Financial Instability
• Supporting the cultural industries using venture capital: a policy experiment from South Korea
• … PEREKONOMIAN INDONESIA LEGAL PROTECTION FOR INVESTORS IN BOND INVESTMENT AGREEMENTS IN THE CAPITAL MARKET IN THE FRAMEWORK …
• The Impact of Social Capital on Firm Value
• Consequences of CSR reporting regulations worldwide: a review and research agenda
•  The determinants of capital structure: A Comparative Study on UK and Chinese Companies
• Taxing Capital Income When Longevity and Income are (Un) Correlated
• Intellectual Capital Toward Market Performance: Profitability as a Mediating and Maqashid Sharia as a Moderating Variable
•  Sharia-Compliance, Internal Capital Allocation and Investment Policy: Evidence from Malaysia
•  Green Capital and Green Jobs: What Does Transition to Green Economy Look Like?
• … oleh Persepsi Risiko: The Effect of Financial Literacy on Sebelas Maret University (UNS) Students Investment Decisions in The Capital Market Moderating by Risk …
• COVID-19’s Impact on Catering Investment of Venture Capital in China
• Correlation between cost of capital, book values and shares prices: evidence from Qatar stock exchange
• Waiting for Capital: Dynamic Intermediation in Illiquid Markets
• Policy Recommendations to Enhance Vietnamese SMEs’ Ability to Access Venture Capital
• Value at Risk, Expected Shortfall, and Other Risk Measures
• Is Capital Structure Irrelevant with ESG Investors?
• Countering Financial Claims: On the political economy of definancialisation
• Basic Finance: Interest Rates, Discounting, Investments, Loans
• Characterization of venture capital investments in dermatology: A cross-sectional analysis, 2011 to 2021
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Luxury residential markets proved resilient in the face of interest rate hikes in 2023

Key Findings

• Luxury prices climbed 3.1% on average in 2023.
• Sales volumes, not prices, were the main casualty of higher interest rates.
• Manila leads, with Dubai in second place.
• Asia-Pacific was the strongest-performing world region.
• London and New York remain closely aligned.

The results

The Prime International Residential Index (PIRI 100) surprised on the upside in 2023. Of the 100 markets tracked, 80 recorded flat or positive annual price growth.

Yet at the start of 2023, economists were expecting a much weaker outcome. Stock markets were headed for more pain, inflation was veering out of control and the pandemic-fuelled property boom was set to end in tears as borrowing costs hit 15-year highs in some markets. Right? Wrong.

The “soft landing” adage applied as much to luxury property markets as to monetary policy, with the index posting a solid 3.1% gain overall. Manila (26%) leads but last year’s frontrunner, Dubai (16%), slipped only one spot. Asia-Pacific (3.8%) pipped the Americas (3.6%) to the title of strongest-performingworld region, with Europe, the Middle East and Africa trailing (2.6%).

As predicted last year, sun locations continued to outperform, up 4.7% on average with ski resorts close behind (3.3%) and cities on 2.7%.

The year in review

As markets adjusted to the higher cost of debt, sales took a bigger hit than prices. In London, New York, Dubai, Singapore, Hong Kong and Sydney, luxury sales declined on average by 37% year-on-year.

Some markets corrected after strong falls due to rapid rate hikes (Auckland, Seoul), while others moved up the rankings in part due to supply shortages (Sydney, Singapore). Some were influenced by policy and tax shifts, easing (Hong Kong) or tightening (Los Angeles), and some markets benefited from significant wealth inflows (Dubai, Miami).

Prices in both New York and London dipped around 2% in 2023 and sit 8% and 17% below their most recent market peaks respectively, presenting a strong opportunity for prospective buyers. Iberia proved a hotspot, occupying five of the top 20 rankings with the Algarve and Ibiza (both 12%) leading the pack.

Seeking value?

Our PIRI pricing graphics provide an annual guide to how much space your money will buy you when it comes to prime residential property

There is significant variation in prime prices across luxury residential markets, which often surprises buyers. Prime prices in Dubai may sit 134% higher than at the start of the pandemic but they are still noticeably lower than in more established markets. Here, US$1 million buys 91 sq m, four times the equivalent in Hong Kong.

It’s a similar story for second homes, as shown in our new chart focusing on rural, coastal and alpine markets. In Barbados, for example, US$1 million will garner 143 sq m, more than four times as much luxury space as in St Tropez.

Image by Dylan Gonzales from Pixabay

Download the full report here

Further reading

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