Does Regulatory Cooperation Help Integrate Equity Markets?

54 Pages Posted: 7 Feb 2021

See all articles by Roger Silvers

Roger Silvers

University of Utah; European Corporate Governance Institute (ECGI)

Date Written: December 9, 2020


This study tests whether cooperation between securities regulators influences global market integration. I measure cooperation using arrangements between securities regulators that enable enhanced cross-border enforcement, better regulatory decisions, and reduced compliance obligations for cross-border activities. These arrangements—formed at different times for different country pairs—are associated with an 11% increase in cross-border investment. I find similar increases using other proxies for market integration. Cross-border investment and market integration thus depend, in part, on regulators working together to extend legal and institutional capacities across borders. This reframes our understanding of the role of institutions in global capital markets.

Keywords: cross-border cooperation, regulatory networks, market integration, capital mobility

JEL Classification: E02, F2, F3, F4, F5, F6, G15, K2, K33, M41

Suggested Citation

Silvers, Roger, Does Regulatory Cooperation Help Integrate Equity Markets? (December 9, 2020). Journal of Financial Economics (JFE), Forthcoming, Available at SSRN: or

Roger Silvers (Contact Author)

University of Utah ( email )

1655 E Campus Dr
SLC, UT 01003
United States


European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

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