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International Financial Integration Through Equity Markets; Which Firms from Which Countries Go Global?

Sergio Schmukler () and Stijn Claessens ()

No 07/138, IMF Working Papers from International Monetary Fund

Abstract: This paper studies international financial integration analyzing firms from various countries raising capital, trading equity, and/or cross-listing in major world stock markets. Using a large sample of 39,517 firms from 111 countries covering the period 1989-2000, we find that, although international financial integration increases substantially over this period, only relatively few countries and firms actively participate in international markets. Firms more likely to internationalize are from larger and more open economies, with higher income, better macroeconomic policies, and worse institutional environments. These firms tend to be larger, grow faster, and have higher returns and more foreign sales. While changes occur with internationalization, these firm attributes are present before internationalization takes place. The results suggest that international financial integration will likely remain constrained by country and firm characteristics.

Keywords: Capital accumulation; International capital markets; Globalization; Stock markets; international financial integration, internationalization, globalization of financial markets, access to financial markets, international firms, equity markets, stock market, foreign sales, stock exchange, (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-sea
Date: 2007-06-01
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Journal Article: International financial integration through equity markets: Which firms from which countries go global? (2007) Downloads
Working Paper: International Financial Integration through Equity Markets: Which Firms from Which Countries Go Global? (2007) Downloads
Working Paper: International financial integration through equity markets: which firms from which countries go global ? (2007) Downloads
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