NCA in stock market research

A team of researchers led by Mathijs van Dijk (Rotterdam School of Management) applied NCA in a study about success factors of new stock markets. They analysed 59 stock markets that have been established in developing countries since 1975 and found that early success is a necessary condition for success in the long run. In particular, a stock market needs to have a minimum number of listings – roughly around fifteen – in the first five years, and roughly seven per cent of the listed shares need to be traded every year during that period.
A short video summarizes this study and its NCA application: