Title: Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers
Abstract: No AccessPolicy Research Working Papers21 Jun 2013Explaining the Migration of Stocks from Exchanges in Emerging Economies to International CentersAuthors/Editors: Daniela Klingebiel, Stijn Claessens, and Sergio SchmuklerDaniela Klingebiel, Stijn Claessens, and Sergio Schmuklerhttps://doi.org/10.1596/1813-9450-2816SectionsAboutPDF (0.2 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:Claessens, Klingebiel, and Schmukler 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. This paper—a product of Macroeconomics and Growth, Development Research Group—is part of a larger effort in the group to understand financial globalization and capital market development. The authors may be contacted at [email protected], [email protected], or [email protected]. Previous bookNext book FiguresreferencesRecommendeddetailsCited byDoes financial liberalization lead to financial development? Evidence from emerging economiesThe Journal of International Trade & Economic Development, Vol.30, No.87 July 2021International Financial Integration through Depositary Receipts (DRs)Journal of Accounting and Finance in Emerging Economies, Vol.6, No.131 March 2020Is stock market sensitive to foreign capital inflows and economic growth?Journal of Chinese Economic and Foreign Trade Studies, Vol.8, No.3ADR holdings of US-based emerging market fundsJournal of Banking & Finance, Vol.31, No.6What matters for financial development? Capital controls, institutions, and interactionsJournal of Development Economics, Vol.81, No.1Empirical evidence on cross-listed stocks of Central and Eastern European companiesEmerging Markets Review, Vol.6, No.2International Listing as a Mechanism of Commitment to More Credible Corporate Governance Practices: the case of the Bank of China (Hong Kong)Corporate Governance, Vol.13, No.1Bank Consolidation, Internationalization, and Conglomeration: Trends and Implications for Financial RiskFinancial Markets, Institutions & Instruments, Vol.13, No.46 October 2004The Future of Stock Exchanges: Determinants and ProspectsEuropean Business Organization Law Review, Vol.3, No.228 February 2015 View Published: March 2002 Copyright & Permissions Related Regions Europe and Central Asia Latin America & Caribbean Related Countries United States Related Topics Finance and Financial Sector Development Macroeconomics and Economic Growth Private Sector Development KeywordsBUDGETCAPITAL RAISINGDEVELOPING COUNTRIESEMERGING ECONOMIESEXCHANGESFINANCIAL SUPPORTLEGAL SYSTEMSLIQUID MARKETSLOCAL EXCHANGELOCAL STOCK EXCHANGESOPEN FINANCIAL MARKETSSHAREHOLDERSHARESSTOCKSTOCK EXCHANGESTOCK MARKETSTOCK MARKET DEVELOPMENTSTOCK MARKETSSTOCKSTRADING PDF DownloadLoading ...