The Finance Shelf

Comprehensive Industry Analysis of the Capital Market Industry: Trends, Opportunities and Challenges (Poornaprajna International Journal of Management Education & Social Science (PIJMESS))

Research paperPoornaprajna International Journal of Management Education & Social Science (PIJMESS)August 202640 pages60 min readManwitha N., G. Nayana, V. Nikhitha, P. S. AithalOriginal source
Key number
90%
Expected AI Adoption in Capital Markets by 2025 p.25
What changed
42%
Cost of Capital Drop via Depositary Receipts p.15
Key number
78%
Investors Trusting AI Portfolio Tools p.27

Summary

  • An analysis of 150,165 equity and bond issuances across 65 countries between 1990 and 2016 demonstrates that firm growth is supported by accessing capital markets.p.17
  • A study on depositary receipt offerings across 126 firms in 32 countries revealed a 42% drop in the cost of capital.p.15
  • Over 90% of financial market firms expect to rely on AI-driven trading, risk assessment, and compliance automation by 2025.p.25
  • More than 80% of global investment firms rely on AI-driven surveillance systems to monitor market activity and prevent fraud.p.26
  • An examination of 80 M&A transactions between 2003 and 2009 showed a $4 million decline in economic profit for combined entities.p.16
  • Surveys indicate that 78% of investors trust AI-powered platforms for portfolio optimization and risk assessment.p.27
  • Research on environmental ratings revealed that firms with poor environmental performance experience negative abnormal stock returns reaching as much as 30%.p.6

Key insights

  1. Depositary receipt offerings significantly decrease financing costs, leading to a 42% reduction in the cost of capital across 32 countries.p.15
  2. Global capital market participation by 62,653 firms between 1990 and 2016 shows stronger expansion among younger, smaller, and high-R&D companies.p.17
  3. By 2025, over 90% of financial institutions anticipate utilizing AI for trading, compliance automation, and risk evaluation.p.25
  4. Trade surveillance heavily relies on advanced technology, with over 80% of global investment firms utilizing AI to detect financial misconduct.p.26
  5. Investor perception of automated advisory tools is high, with 78% of investors trusting AI-enabled platforms for portfolio optimization.p.27
  6. Environmental performance directly affects valuation, as companies with poor environmental ratings suffer negative abnormal returns of up to 30%.p.7
  7. M&A deals in emerging capital markets between 2003 and 2009 resulted in an average $4 million drop in economic profit for merged firms.p.16

Topics and entities

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