The Portuguese Securities Commission (CMVM) has presented a commissioned research paper on the dynamisation of capital markets, examining how capital market development interacts with economic growth and the financing and investment behaviour of companies and households. The paper’s central finding is that improving access conditions to capital markets for both firms seeking funding and households allocating savings could support investment, innovation and productivity in Portugal. Across four chapters combining international and Portuguese evidence, the research links capital market development, measured by stock market capitalisation and non-bank credit, with stronger innovation dynamics in panel data. For Portuguese corporates, firms with listed shares or bonds, as well as their subsidiaries, are found to be more productive than firms without capital market access; venture capital-backed firms show stronger export performance, while venture capital recipients and private debt placement users show a higher propensity to hire specialised workers and invest in research and development. The analysis also associates capital market access with better financing conditions, including lower external capital costs, a lower share of short-term loans, relatively lower debt levels and higher investment, while household participation in capital markets across 18 European Union countries is characterised as limited and shaped by economic and behavioural barriers such as low wealth, risk aversion and low financial literacy.

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