An assessment model for measuring the development of bond markets : a comparative study of the Thai and French bond markets | |
| Author | Tippawan Pinvanichkul |
| Call Number | AIT Diss. no.SM-98-1 |
| Subject(s) | Bond market--Thailand Bond market--France |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | Rapid economic development in Asian countries for the past decade and the early part of this decade has led to the need for fair-cost sources regarding long-term loans for a sustainable business development. For the past few years, there have been some efforts from both public and private sectors to develop a more efficient domestic bond market in Thailand. The bond market had been quite competitive since 1994, however, the tough competition could only be sustained for a short period as the market failure was to demonstrate evidently after the recent financial crisis in Asian region. In order to achieve a more sustainable bond market for Thailand as business competition intensifies after the new reforms, radical changes need to be introduced in the bond market in Thailand. In this study, a model for assessing the level of bond-market development is proposed. The model considers three major components, i.e., the market climate, infrastructure, and operation as the first-level hierarchical factors. The second- to fourth-level are generic factors, specific factors, and enabler factors. Each enabler factor is elaborated using criteria related to bond-market development. The criteria are assessed based on an established scaling scheme. The scaling scheme presents the prescribed alternatives of essential enabler factors. Each essential enabler factor of Thai bond market is then assessed by comparing its present situation with that of the corresponding prescribed alternatives, which range between the bottom level (the worst/poorest p9ssibility) and the top level (the present situation of French bond market). The assessment is expressed in fraction of French bond market situation or called rated ratio. The (enabler-factor) gap will be calculated by using the relationship: Gap = 1- Rated Ratio. Then the gaps of other factors in upper hierarchies, i.e., the specific-factor, generic-factor, and three major-component gaps will be determined. For national-level development purposes, the setting of priorities for enabler factors with gaps below 1.00 is proposed. The five levels of priority, i.e., the first, second to fourth, and last are established to match the three levels of time span, i.e., short (less than 1 year), medium (1-4 years), and long (more than 4 years) terms, respectively. The first- priority path of improvement ·is started from the biggest-gap component down to the big-gap or bigger-gap generic factor(s). Similar procedure is extended down to the big-gap or bigger-gap specific factor(s) and then to the big-gap enabler factors. Similarly, the last- priority path of improvement is represented by the successively small-gap or smaller-gap factors starting from the smallest-gap component downward until reaching the small-gap enabler factors. The remainder of enabler factors are the second- to fourth-priority paths. Discussion about the usefulness and practical application of the model is made. Lastly, suggestions are also presented with respect to cooperative arrangements that are needed for government, support institutes, and the bond industry to actively use the proposed model for enhancing the bond-market climate, for strengthening the bond-market infrastructure, and for stabilizing the bond-market operation. |
| Year | 1998 |
| Type | Dissertation |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Gupta, Jyoti P.; |
| Examination Committee(s) | Nagarur, N. N. ;Khang, Do Ba ;Kitti Limsk:ul ; |
| Scholarship Donor(s) | Government of France; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 1998 |