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Stock exchange consolidation and cross-border investment: An empirical assessment

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  • Giofré, Maela

Abstract

This paper investigates the effects of stock exchange consolidation on foreign portfolio holdings. Sharing a common stock exchange platform enhances cross-border investments, and the consolidation effect is particularly pronounced among member countries that are smaller in size and closer in geographical, cultural and economic terms. These findings survive different econometric specifications and outlier treatments. After accounting for endogeneity of the consolidation process, the effect of exchange consolidation on cross-border investment is confirmed.

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  • Giofré, Maela, 2021. "Stock exchange consolidation and cross-border investment: An empirical assessment," Journal of Financial Stability, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finsta:v:53:y:2021:i:c:s1572308920300954
    DOI: 10.1016/j.jfs.2020.100796
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    More about this item

    Keywords

    Stock exchange consolidation; International Portfolio Investments; Stock market information;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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