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Routes to Equity Market Integration – the interplay between Politicians, Investors and Managers

Oxelheim, Lars LU (2001) In Journal of Multinational Financial Management 11(2). p.183-211
Abstract
Most econometric studies of equity market integration suggest that national markets are increasingly becoming part of a global equity market. As regards the extent of this integration, however, the results are often inconclusive. Further analysis calls for a closer scrutiny of the basic requirements for perfect integration. This paper presents an analysis of market segmentation in terms of existing regulatory and informational wedges, based on conditions in the Nordic welfare states. It is found that no barriers remain to cross-border equity market transactions, nor consequently to the perfect global integration of Nordic equity markets in a capital-flow perspective. However, certain residual cross-border tax wedges do challenge the view... (More)
Most econometric studies of equity market integration suggest that national markets are increasingly becoming part of a global equity market. As regards the extent of this integration, however, the results are often inconclusive. Further analysis calls for a closer scrutiny of the basic requirements for perfect integration. This paper presents an analysis of market segmentation in terms of existing regulatory and informational wedges, based on conditions in the Nordic welfare states. It is found that no barriers remain to cross-border equity market transactions, nor consequently to the perfect global integration of Nordic equity markets in a capital-flow perspective. However, certain residual cross-border tax wedges do challenge the view of perfect equity market integration. Further, continuing cross-border information gaps for small and medium-sized companies indicate the presence of a two-tier equity market integration. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Equity market integration, Foreign equity issue, Cross-listing
in
Journal of Multinational Financial Management
volume
11
issue
2
pages
183 - 211
publisher
Elsevier
external identifiers
  • scopus:0041691045
ISSN
1873-1309
DOI
10.1016/S1042-444X(00)00049-9
language
English
LU publication?
yes
id
4e7416ae-db57-4276-85d6-a0bcc5607965 (old id 1387836)
date added to LUP
2009-04-20 12:27:27
date last changed
2018-05-29 10:30:46
@article{4e7416ae-db57-4276-85d6-a0bcc5607965,
  abstract     = {Most econometric studies of equity market integration suggest that national markets are increasingly becoming part of a global equity market. As regards the extent of this integration, however, the results are often inconclusive. Further analysis calls for a closer scrutiny of the basic requirements for perfect integration. This paper presents an analysis of market segmentation in terms of existing regulatory and informational wedges, based on conditions in the Nordic welfare states. It is found that no barriers remain to cross-border equity market transactions, nor consequently to the perfect global integration of Nordic equity markets in a capital-flow perspective. However, certain residual cross-border tax wedges do challenge the view of perfect equity market integration. Further, continuing cross-border information gaps for small and medium-sized companies indicate the presence of a two-tier equity market integration.},
  author       = {Oxelheim, Lars},
  issn         = {1873-1309},
  keyword      = {Equity market integration,Foreign equity issue,Cross-listing},
  language     = {eng},
  number       = {2},
  pages        = {183--211},
  publisher    = {Elsevier},
  series       = {Journal of Multinational Financial Management},
  title        = {Routes to Equity Market Integration – the interplay between Politicians, Investors and Managers},
  url          = {http://dx.doi.org/10.1016/S1042-444X(00)00049-9},
  volume       = {11},
  year         = {2001},
}