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International Financial Integration through Equity Markets: Which Firms from Which Countries Go Global?

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Author Info
Claessens, Stijn
Schmukler, Sergio

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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.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6137.

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Date of creation: Feb 2007
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Handle: RePEc:cpr:ceprdp:6137

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Related research
Keywords: access to capital markets globalization of financial markets international financial integration internationalization

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Find related papers by JEL classification:
G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
G20 - Financial Economics - - Financial Institutions and Services - - - General

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References listed on IDEAS
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Cécile Carpentier & Jean-François L'Her & Jean-Marc Suret, 2007. "Is the Long-Run Performance of Cross-Listed Firms Anomalous?," CIRANO Working Papers 2007s-25, CIRANO. [Downloadable!]
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