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Routes to Equity Market Integration - The Interplay between Politicians, Investors and Managers

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  • Oxelheim, Lars

    ()
    (The Research Institute of Industrial Economics)

Abstract

Most econometric studies of equity market integration suggest that national markets are increasingly becoming part of a global equity market. As regards the extent of this integration, however, the results are often inconclusive. Further analysis calls for a closer scrutiny of the basic requirements for perfect integration. This paper presents an analysis of market segmentation in terms of existing regulatory and informational wedges, based on conditions in the Nordic welfare states. It is found that no barriers remain to cross-border equity market transactions, nor consequently to the perfect global integration of Nordic equity markets in a capital-flow perspective. However, certain residual cross-border tax wedges do challenge the view of perfect equity market integration. Further, continuing cross-border information gaps for small and medium-sized companies indicate the presence of a two-tier equity market integration.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 526.

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Length: 35 pages
Date of creation: 09 Feb 2000
Date of revision:
Publication status: Published in Journal of Multinational Financial Management, 2001, pages 183-211.
Handle: RePEc:hhs:iuiwop:0526

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Keywords: Equity market integration; Foreign equity issue; Cross-listing;

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Citations

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Cited by:
  1. Oxelheim, Lars & Randøy, Trond, 2001. "The Impact of Foreign Board Membership on Firm Value," Working Paper Series 567, Research Institute of Industrial Economics.
  2. Oxelheim, Lars, 2010. "Globalization, transparency and economic growth: The vulnerability of Chinese firms to macroeconomic shocks," Journal of Asian Economics, Elsevier, vol. 21(1), pages 66-75, February.
  3. Oxelheim, Lars & Gregori, Aleksandra & Randøy, Trond & Thomsen, Steen, 2013. "On the Internationalization of Corporate Boards," Working Paper Series 951, Research Institute of Industrial Economics.
  4. Marashdeh, Hazem, 2005. "Stock Market Integration in the MENA Region: An Application of the ARDL Bounds Testing Approach," Economics Working Papers wp05-27, School of Economics, University of Wollongong, NSW, Australia.
  5. Oxelheim, Lars & Randoy, Trond & Stonehill, Arthur, 2011. "What Can International Finance Add to International Strategy?," Working Paper Series 888, Research Institute of Industrial Economics.

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