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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.

International economic integration. --- Globalization. --- International business enterprises. --- Finance: General --- General Financial Markets: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- Finance --- Stock markets --- Market capitalization --- International capital markets --- Capital markets --- Financial integration --- Stock exchanges --- Capital market --- Financial services industry --- International finance --- United States

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This study analyzes the impact of regional cross-listing of stocks on the depth of the stock markets in sub-Saharan Africa (SSA). It analyzes data from 1990 to 2007 for a panel of 13 stock markets in SSA countries, only some of which have regional cross-listings. Using event study methodology, the paper finds significant positive effects in measures of stock market depth around regional cross-listing events. Overall, growth in the regional crosslisting of stocks facilitates stock market deepening, and the stock markets of countries with regional cross-listings perform better than those without. The study thus suggests that SSA countries can benefit from putting in place the necessary conditions for promoting regional cross-listings and thereby deepening their stock markets. These include sound legal and regulatory frameworks, macroeconomic and political stability, harmonization of listing rules, accounting laws and disclosure requirements across the region, and strong money markets.

Exports and Imports --- Finance: General --- Investments: Stocks --- General Financial Markets: General (includes Measurement and Data) --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Financial Markets and the Macroeconomy --- Financial Aspects of Economic Integration --- Finance --- Investment & securities --- International economics --- Stock markets --- Stocks --- Market capitalization --- Emerging and frontier financial markets --- Regional integration --- Stock exchanges --- Financial services industry --- International economic integration --- South Africa

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This paper studies the correlation between output growth and lagged stock returns in a panel of emerging market economies and advanced economies. It finds that the correlation is as strong in emerging market economies as in advanced economies. Asset prices therefore contain valuable information to forecast output also in emerging market economies. Moreover, the paper finds that the strength of the correlation between output growth and lagged stock returns is significantly related to a number of stock market characteristics, such as the number of listed domestic companies and initial public offerings and, especially, a high market capitalization to GDP ratio and English legal origin.

Finance: General --- Investments: Stocks --- Macroeconomics --- Financial Markets and the Macroeconomy --- International Financial Markets --- General Financial Markets: General (includes Measurement and Data) --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Macroeconomics: Production --- Finance --- Investment & securities --- Stocks --- Stock markets --- Emerging and frontier financial markets --- Production growth --- Market capitalization --- Financial institutions --- Financial markets --- Production --- Financial services industry --- Stock exchanges --- Economic theory --- United States

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The degree of comovement across national stock markets has increased dramatically since the mid-1990s. This has overturned a stylized fact in the international portfolio diversification literature that diversifying across countries is more effective for risk reduction than diversifying across industries. We investigate if this rise in comovement is a permanent phenomenon driven by greater economic and financial integration, or a temporary effect associated with the recent stock market bubble. At the global level, our results point to the bubble. At a regional level, we find evidence of a significant rise in market integration within Europe, possibly a reflection of institutional changes such as the EMU.

Finance: General --- Investments: Stocks --- Portfolio Choice --- Investment Decisions --- International Financial Markets --- General Financial Markets: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Finance --- Investment & securities --- Stock markets --- Emerging and frontier financial markets --- Market capitalization --- Stocks --- Financial integration --- Financial markets --- Financial institutions --- Stock exchanges --- Financial services industry --- International finance --- United States

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This paper examines the economic importance of stock markets in Africa. It discusses policy options for promoting the development of the stock market in Africa. The results of the paper show that the stock markets have contributed to the financing of the growth of large corporations in certain African countries. An econometric investigation of the impact of stock markets on growth in selected African countries, however, finds inconclusive evidence even though stock market value traded seem to be positively and significantly associated with growth. African stock exchanges now face the challenge of integration and need better technical and institutional development to address the problem of low liquidity. Preconditions for successful regional approaches include the harmonization of legislations such as bankruptcy and accounting laws and a liberalized trade regime. Robust electronic trading systems and central depository systems will be important. Further domestic financial liberalization such as steps to improve the legal and accounting framework, private sector credit evaluation capabilities, and public sector regulatory oversight would also be beneficial.

Finance: General --- Investments: Stocks --- General Financial Markets: General (includes Measurement and Data) --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Financial Markets and the Macroeconomy --- Portfolio Choice --- Investment Decisions --- Finance --- Investment & securities --- Stock markets --- Emerging and frontier financial markets --- Stocks --- Market capitalization --- Liquidity --- Stock exchanges --- Financial services industry --- Economics --- South Africa --- Africa, Sub-Saharan --- Economic conditions. --- Economic policy.