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Why Issue Equity Abroad - Corporate Reasons and Stock Market Responses

På svenska

Author

  • Karl-Markus Modén
  • Lars Oxelheim

Summary, in English

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.

Publishing year

1997

Language

English

Pages

223-241

Publication/Series

Mir: Management International Review: Journal of International Business

Volume

37

Issue

3

Document type

Journal article

Publisher

Gabler Verlag

Topic

  • Economics and Business
  • Business Administration

Status

Published

ISBN/ISSN/Other

  • ISSN: 1861-8901