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Why Issue Equity Abroad - Corporate Reasons and Stock Market Responses

Modén, Karl-Markus and Oxelheim, Lars LU (1997) In Mir: Management International Review: Journal of International Business 37(3). p.223-241
Abstract
In a world with imperfectly integrated national capital markets the cost of funds is, in general, different across markets. If individual countries, by mutual agreement, or forced by factors outside their control, embark on a process of deregulation and financial integration, the spread in the cost of funds across markets will narrow. Some types of impediments, such as explicit capital controls, will be easily removed, while others such as informational problems, may prove harder to overcome. Sweden provides an example where national capital markets were highly regulated between 1939 and the mid-seventies, then a process of gradual liberalization began. This process increased in intensity during the first part of 1980s and culminated in... (More)
In a world with imperfectly integrated national capital markets the cost of funds is, in general, different across markets. If individual countries, by mutual agreement, or forced by factors outside their control, embark on a process of deregulation and financial integration, the spread in the cost of funds across markets will narrow. Some types of impediments, such as explicit capital controls, will be easily removed, while others such as informational problems, may prove harder to overcome. Sweden provides an example where national capital markets were highly regulated between 1939 and the mid-seventies, then a process of gradual liberalization began. This process increased in intensity during the first part of 1980s and culminated in 1989 then the last remnants of the formal exchange controls were removed. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Mir: Management International Review: Journal of International Business
volume
37
issue
3
pages
223 - 241
publisher
Gabler Verlag/GWV Fachverlage GmbH
ISSN
1861-8901
language
English
LU publication?
yes
id
11f740ba-faf5-4d9b-b3f0-84fabd671827 (old id 1513998)
alternative location
http://findarticles.com/p/articles/mi_hb3265/is_n3_v37/ai_n28693819/
date added to LUP
2009-12-09 12:48:53
date last changed
2016-04-16 05:54:38
@article{11f740ba-faf5-4d9b-b3f0-84fabd671827,
  abstract     = {In a world with imperfectly integrated national capital markets the cost of funds is, in general, different across markets. If individual countries, by mutual agreement, or forced by factors outside their control, embark on a process of deregulation and financial integration, the spread in the cost of funds across markets will narrow. Some types of impediments, such as explicit capital controls, will be easily removed, while others such as informational problems, may prove harder to overcome. Sweden provides an example where national capital markets were highly regulated between 1939 and the mid-seventies, then a process of gradual liberalization began. This process increased in intensity during the first part of 1980s and culminated in 1989 then the last remnants of the formal exchange controls were removed.},
  author       = {Modén, Karl-Markus and Oxelheim, Lars},
  issn         = {1861-8901},
  language     = {eng},
  number       = {3},
  pages        = {223--241},
  publisher    = {Gabler Verlag/GWV Fachverlage GmbH},
  series       = {Mir: Management International Review: Journal of International Business},
  title        = {Why Issue Equity Abroad - Corporate Reasons and Stock Market Responses},
  volume       = {37},
  year         = {1997},
}