Abstract

http://ssrn.com/abstract=184828
 
 

References (47)



 
 

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On the Formation and Structure of International Exchanges


Matthew J. Clayton


University of Virginia - McIntire School of Commerce

Bjorn Jorgensen


London School of Economics & Political Science (LSE) - Department of Accounting

Kenneth A. Kavajecz


University of Wisconsin, Madison - Department of Finance, Investment and Banking

April 2000

AFA 2001 New Orleans; NYU Ctr for Law and Business Research Paper No. 00-08; RLW Center Working Paper No. 22-99

Abstract:     
We investigate the formation and structure of 248 financial exchanges throughout the world. First, we empirically analyze the determinants of exchange formation as well as the impact of exchange formation on the domestic country's economy. Second, conditional on formation, we use a probit model to relate the choice of trading mechanism to the characteristics of the economic environment in which the exchange exists. We find that the main determinants of exchange formation in a country are the degree of economic freedom, the size of the economy, the availability of technology, and the legal system. In addition, we find that the impact of exchange formation on the macro economy is limited to a reduction in the growth of the monetary aggregates with no significant impact on productivity. Lastly, our results show that the choice of trading mechanism depends on the country's economic development, the degree of competition, and the extent of economic freedom.

Number of Pages in PDF File: 33

JEL Classification: G12

working papers series


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Date posted: November 16, 1999  

Suggested Citation

Clayton, Matthew J. and Jorgensen, Bjorn and Kavajecz, Kenneth A., On the Formation and Structure of International Exchanges (April 2000). AFA 2001 New Orleans; NYU Ctr for Law and Business Research Paper No. 00-08; RLW Center Working Paper No. 22-99. Available at SSRN: http://ssrn.com/abstract=184828 or http://dx.doi.org/10.2139/ssrn.184828

Contact Information

Matthew J. Clayton
University of Virginia (UVA) - McIntire School of Commerce ( email )
P.O. Box 400173
Charlottesville, VA 22904-4173
United States
434-243-4043 (Phone)
434-924-7074 (Fax)
Bjorn N Jorgensen
London School of Economics & Political Science (LSE) - Department of Accounting ( email )
Department of Accounting Room, OLD 2.17
Houghton Street
London, WC2A 2AE
United Kingdom
Kenneth A. Kavajecz (Contact Author)
University of Wisconsin, Madison - Department of Finance, Investment and Banking ( email )
975 University Avenue
Madison, WI 53706
United States
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References:  47
Citations:  13
Footnotes:  13

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