Merging Markets

As global capital markets have become more integrated in recent years, the interaction between national stock exchanges has become more profound. This book explores the consolidation of stock exchanges and measures its impact on various financial outcomes which are relevant to all market players. The first half of the book analyzes the impact on co-movements of national stock indices, e.g. whether there is evidence of increased convergence or more profound financial shocks across borders following international stock exchange mergers. The second part of the book examines in detail how stock exchange consolidation has affected stock prices, volatility and liquidity and which types of listed firms benefit the most in terms of these measures. Furthermore, the book investigates whether stock exchange mergers prove to be an effective means of competition, i.e. whether merged exchanges attract market shares from other competing trading venues. The book is relevant to academics, policy makers and industry practitioners, as it provides a valuable contribution to evaluating the possible motives for stock exchange mergers and whether cross-border mergers are advisable.

Autorentext

is an assistant professor of finance at Copenhagen Business School. Ulf has worked for various international institutions and received several research awards, such as from the Federation of European Securities Exchanges for part of the work presented in this book. Ulf holds a Ph.D. degree in economics from Columbia University in New York.