BookDOI
Explaining the migration of stocks from exchanges in emerging economies to international centers
TLDR
In this paper, the authors study the determinants of the growing migration of stock market activity to international financial centers and find that countries with higher income per capita, sounder macroeconomic policies, more efficient legal systems, better shareholder protection and more open financial markets tend to have larger and more liquid stock markets.Abstract:
The authors study the determinants of the growing migration of stock market activity to international financial centers. They use a sample of 77 countries and document that higher economic growth and more macroeconomic stability help stock market development. Countries with higher income per capita, sounder macroeconomic policies, more efficient legal systems, better shareholder protection, and more open financial markets tend to have larger and more liquid stock markets. The authors show that these factors also drive the degree with which capital raising, listing, and trading have been migrating to international financial centers. As fundamentals improve and technology advances, this migration will likely increase and domestic stock market activity may become too little to support local markets. For many emerging economies, the best policy is to establish sound fundamentals but not necessarily the trading, or even listing of securities locally.read more
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What Matters for Financial Development? Capital Controls, Institutions, and Interactions
Menzie D. Chinn,Hiro Ito +1 more
TL;DR: In this article, the authors investigate whether financial openness leads to financial development after controlling for the level of legal development using a panel encompassing 108 countries over the period 1980 to 2000, and find that trade openness is a prerequisite for capital account liberalization while banking system development is a precondition for equity market development.
Journal ArticleDOI
The World of Cross-Listings and Cross-Listings of the World: Challenging Conventional Wisdom
TL;DR: In this paper, the authors present a survey, synthesize and critically review the most recent literature on international cross-listings and propose a number of new research initiatives to understand better the motivation for overseas listings.
Book
Economic growth in the 1990s : learning from a decade of reform
TL;DR: In this paper, the authors examine the impact of growth of key policy and institutional reforms: macroeconomic stabilization, trade liberalization, deregulation of finance, privatization, deregulatory of utilities, modernization of the public sector with a view to increasing its effectiveness and accountability, and spreading of democracy and decentralization.
Posted Content
Bank Consolidation, Internationalization, and Conglomeration: Trends and Implications for Financial Risk
TL;DR: The authors explored the extent to which financial firm risk and systemic risk potential in banking are related to consolidation and conglomeration, and found that while there is a substantial upward trend in conglomeration globally, consolidation and internationalization exhibit uneven patterns across world regions.
Journal ArticleDOI
Financial super-markets: size matters for asset trade
Philippe Martin,Hélène Rey +1 more
TL;DR: In this article, the authors present a two-country model with an endogenous number of financial assets, where the interaction of a risk diversification motive and market segmentation explains those facts.
References
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Journal ArticleDOI
Specification Tests in Econometrics
TL;DR: In this article, the null hypothesis of no misspecification was used to show that an asymptotically efficient estimator must have zero covariance with its difference from a consistent but asymptonically inefficient estimator, and specification tests for a number of model specifications in econometrics.
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
Journal ArticleDOI
Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.
ReportDOI
Financial Dependence and Growth
Raghuram G. Rajan,Raghuram G. Rajan,Raghuram G. Rajan,Luigi Zingales,Luigi Zingales,Luigi Zingales +5 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship; that financial development reduces the costs of external finance to firms, and found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.