Regulatory Integration of International Capital Markets

42 Pages Posted: 15 Mar 2017 Last revised: 6 Nov 2018

Date Written: February 10, 2018

Abstract

I examine the financial and real effects of regulatory integration of international capital markets using a unique policy plan by the European Union, which creates a common European market for financial services and capital, through, e.g., passporting rights. For identification, I exploit the bilateral and staggered nature of laws that are passed at the European level but are implemented by national governments. Over its implementation, regulatory integration leads to large increases in external financing, investment and employment for publicly listed firms. These results highlight the importance of regulatory integration of international capital markets for firms’ financing decisions and real outcomes.

Keywords: International Law, Regulation, Integration, Passporting Rights, Capital Markets, External Finance, Real Effects

JEL Classification: F36, G15, G18, G28, G30, K22, K33

Suggested Citation

Meier, Jean-Marie A., Regulatory Integration of International Capital Markets (February 10, 2018). Available at SSRN: https://ssrn.com/abstract=2931569 or http://dx.doi.org/10.2139/ssrn.2931569

Jean-Marie A. Meier (Contact Author)

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

HOME PAGE: http://www.jean-mariemeier.com/

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