Are Expansions Cost Effective for Stock Exchanges? A Global Perspective

36 Pages Posted: 14 Oct 2007

See all articles by Markku Malkamäki

Markku Malkamäki

Evli Bank Plc

Iftekhar Hasan

Fordham University - Gabelli School of Business; Bank of Finland

Date Written: December 18, 2000

Abstract

This paper investigates the existence and extent of economies of scale and scope among stock exchanges. Evidence from 38 exchanges in 32 countries and 4 continents around the world for the years 1989-1998 indicates the existence of significant economies of scale and scope. The degree of such economies however differs by size of exchange and region. The largest stock exchanges show an increasing trend of cost effectiveness. Exchanges in North America and Europe report substantially larger economies of scale than those in the Asia-Pacific regions.

Keywords: stock exchanges, mergers, regional alliances, economies of scale

JEL Classification: D4, G20, G28, F33, L22, O33

Suggested Citation

Malkamäki, Markku and Hasan, Iftekhar, Are Expansions Cost Effective for Stock Exchanges? A Global Perspective (December 18, 2000). Bank of Finland Research Discussion Paper No. 20/2000. Available at SSRN: https://ssrn.com/abstract=1021163 or http://dx.doi.org/10.2139/ssrn.1021163

Markku Malkamäki

Evli Bank Plc ( email )

Aleksanterinkatu 19 A
FIN-00100 Helsinki
Finland

Iftekhar Hasan (Contact Author)

Fordham University - Gabelli School of Business ( email )

Rose Hill Campus Bronx
New York, NY 10458
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Register to save articles to
your library

Register

Paper statistics

Downloads
89
Abstract Views
1,039
rank
288,250
PlumX Metrics