Sample Term Paper
Another reason as to why the economy and its capital structure was capitalistic and the level of capitalization in this region was relatively low as compared to other countries at the time was basically because of the low number of firms and corporation that were listed on the stock exchange.
The relatively small number of companies trading on the stock exchange made the trade of the country to be smaller than other in volume and bulk as well. “In 1991, 665 domestic companies were listed on Germany’s stock exchanges, versus 2027 for the UK, a country almost as large as Germany in terms of population and economic output.” (Vitols, 2004) This factor was further aggravated by the fact that there were very few new companies which displayed eagerness to list with the stock exchange. This was caused mostly due to the uncertainty in the region after 1945 which prompted a more reserved spending and investment policy for Germans.
Conclusively it can be said that Germany has a more capitalistic economy and the capital structure compared to other countries like, mostly because of the saving oriented nature of the people residing in the country and the strength of the German Bank and Monetary reserve at the time of the implementation of the antitrust after the World War II.
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