Migration, Spillovers, and Trade Diversion : The Impact of Internationalization on Stock Market Liquidity
What is the impact of firms that cross-list, issue depositary receipts, or raise capital in international stock markets on the liquidity of remaining firms in domestic markets? Using a panel of over 3,200 firms from 55 countries during 1989-2000, L...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/05/2360827/migration-spillovers-trade-diversion-impact-internationalization-stock-market-liquidity http://hdl.handle.net/10986/18189 |
| id |
okr-10986-18189 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-181892021-04-23T14:03:41Z Migration, Spillovers, and Trade Diversion : The Impact of Internationalization on Stock Market Liquidity Levine, Ross Schmukler, Sergio L. CAPITAL FLOWS CAPITAL MARKETS COMPANY CORPORATION DIVERSIFICATION ECONOMIC GROWTH EQUITY CAPITAL EQUITY MARKETS EXPANSION FINANCIAL INTEGRATION FINANCIAL MARKETS FIRM SIZE FIRMS FIXED COSTS FOREIGN MARKETS FUTURE RESEARCH GDP GLOBALIZATION GROSS DOMESTIC PRODUCT INFLATION INTEREST RATES INTERNATIONAL MARKETS LIQUIDITY MACROECONOMICS MARKET INTEGRATION STOCK EXCHANGES STOCK MARKETS STOCK PRICES TRADE DIVERSION TRANSPARENCY INTERNATIONAL FINANCE ASSET PRICING What is the impact of firms that cross-list, issue depositary receipts, or raise capital in international stock markets on the liquidity of remaining firms in domestic markets? Using a panel of over 3,200 firms from 55 countries during 1989-2000, Levine and Schmukler find that internationalization reduces the liquidity of domestic firms through two channels. First, the trading of international firms migrates from domestic to international markets and the reduction in domestic liquidity of international firms has negative spillover effects on domestic firm liquidity. Second, there is trade diversion within domestic markets as liquidity shifts out of domestic firms and into international firms. 2014-05-06T16:17:59Z 2014-05-06T16:17:59Z 2003-05 http://documents.worldbank.org/curated/en/2003/05/2360827/migration-spillovers-trade-diversion-impact-internationalization-stock-market-liquidity http://hdl.handle.net/10986/18189 English en_US Policy Research Working Paper;No. 3046 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
CAPITAL FLOWS CAPITAL MARKETS COMPANY CORPORATION DIVERSIFICATION ECONOMIC GROWTH EQUITY CAPITAL EQUITY MARKETS EXPANSION FINANCIAL INTEGRATION FINANCIAL MARKETS FIRM SIZE FIRMS FIXED COSTS FOREIGN MARKETS FUTURE RESEARCH GDP GLOBALIZATION GROSS DOMESTIC PRODUCT INFLATION INTEREST RATES INTERNATIONAL MARKETS LIQUIDITY MACROECONOMICS MARKET INTEGRATION STOCK EXCHANGES STOCK MARKETS STOCK PRICES TRADE DIVERSION TRANSPARENCY INTERNATIONAL FINANCE ASSET PRICING |
| spellingShingle |
CAPITAL FLOWS CAPITAL MARKETS COMPANY CORPORATION DIVERSIFICATION ECONOMIC GROWTH EQUITY CAPITAL EQUITY MARKETS EXPANSION FINANCIAL INTEGRATION FINANCIAL MARKETS FIRM SIZE FIRMS FIXED COSTS FOREIGN MARKETS FUTURE RESEARCH GDP GLOBALIZATION GROSS DOMESTIC PRODUCT INFLATION INTEREST RATES INTERNATIONAL MARKETS LIQUIDITY MACROECONOMICS MARKET INTEGRATION STOCK EXCHANGES STOCK MARKETS STOCK PRICES TRADE DIVERSION TRANSPARENCY INTERNATIONAL FINANCE ASSET PRICING Levine, Ross Schmukler, Sergio L. Migration, Spillovers, and Trade Diversion : The Impact of Internationalization on Stock Market Liquidity |
| relation |
Policy Research Working Paper;No. 3046 |
| description |
What is the impact of firms that
cross-list, issue depositary receipts, or raise capital in
international stock markets on the liquidity of remaining
firms in domestic markets? Using a panel of over 3,200 firms
from 55 countries during 1989-2000, Levine and Schmukler
find that internationalization reduces the liquidity of
domestic firms through two channels. First, the trading of
international firms migrates from domestic to international
markets and the reduction in domestic liquidity of
international firms has negative spillover effects on
domestic firm liquidity. Second, there is trade diversion
within domestic markets as liquidity shifts out of domestic
firms and into international firms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Levine, Ross Schmukler, Sergio L. |
| author_facet |
Levine, Ross Schmukler, Sergio L. |
| author_sort |
Levine, Ross |
| title |
Migration, Spillovers, and Trade Diversion : The Impact of Internationalization on Stock Market Liquidity |
| title_short |
Migration, Spillovers, and Trade Diversion : The Impact of Internationalization on Stock Market Liquidity |
| title_full |
Migration, Spillovers, and Trade Diversion : The Impact of Internationalization on Stock Market Liquidity |
| title_fullStr |
Migration, Spillovers, and Trade Diversion : The Impact of Internationalization on Stock Market Liquidity |
| title_full_unstemmed |
Migration, Spillovers, and Trade Diversion : The Impact of Internationalization on Stock Market Liquidity |
| title_sort |
migration, spillovers, and trade diversion : the impact of internationalization on stock market liquidity |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/05/2360827/migration-spillovers-trade-diversion-impact-internationalization-stock-market-liquidity http://hdl.handle.net/10986/18189 |
| _version_ |
1764439121220075520 |