Why Issue Equity Abroad - Corporate Reasons and Stock Market Responses
Publikation/Tidskrift/Serie: Mir: Management International Review: Journal of International Business
Dokumenttyp: Artikel i tidskrift
Förlag: Gabler Verlag/GWV Fachverlage GmbH
In a world with imperfectly integrated national capital markets the cost of funds is, in general, different across markets. If individual countries, by mutual agreement, or forced by factors outside their control, embark on a process of deregulation and financial integration, the spread in the cost of funds across markets will narrow. Some types of impediments, such as explicit capital controls, will be easily removed, while others such as informational problems, may prove harder to overcome. Sweden provides an example where national capital markets were highly regulated between 1939 and the mid-seventies, then a process of gradual liberalization began. This process increased in intensity during the first part of 1980s and culminated in 1989 then the last remnants of the formal exchange controls were removed.
- Economics and Business
- Business Administration
- ISSN: 1861-8901