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Prestigious stock exchanges: A network analysis of international financial centers

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  • Cetorelli, Nicola
  • Peristiani, Stavros

Abstract

In this paper, we use methods from social network analysis to assess the relative importance of financial centers around the world. Using data from virtually the entire universe of global equity activity, we present complete rankings for 45 separate locations for the period 1990–2006. Our analysis constructs a network measure of prestige based on their ability to attract global IPOs. U.S. exchanges are effectively the unique hosts for cross-border equity activity from many other locations. Moreover, they are the destination of choice for most companies coming from locations with highly prestigious exchanges. We also document the emergence of several competing stock exchanges from developed and emerging market economies. The ascent of these stock markets, however, might reflect improved conditions in a growing global market rather than a decline in the competitiveness of U.S. exchanges.

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  • Cetorelli, Nicola & Peristiani, Stavros, 2013. "Prestigious stock exchanges: A network analysis of international financial centers," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1543-1551.
    • Handle: RePEc:eee:jbfina:v:37:y:2013:i:5:p:1543-1551
    DOI: 10.1016/j.jbankfin.2012.06.011
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    9. Yong Tang & Jason Jie Xiong & Zi-Yang Jia & Yi-Cheng Zhang, 2018. "Complexities in Financial Network Topological Dynamics: Modeling of Emerging and Developed Stock Markets," Complexity, Hindawi, vol. 2018, pages 1-31, November.
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    More about this item

    Keywords

    Network analysis; Stock exchanges; Global equity issuance;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F3 - International Economics - - International Finance

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