Cross-border listings, capital controls, and equity flows to emerging markets
By: Hali J. Edison and Francis E. Warnock.
Contributors: Warnock, Francis E.
Series: International finance discussion papers ;; no. 770; International finance discussion papers (Online) ;; no. 770.
Publisher: Federal Reserve Board
Published: 2003
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "We analyze capital flows to emerging markets in a framework that incorporates two quantitative measures of financial integration, the intensity of capital controls and the extent of cross-border listings, while controlling for traditional global (push) and country-specific (pull) factors.  Two important results emerge.  First, the cross-listing of an emerging market firm on a U.S.  exchange is an important but short-lived capital flows event, suggesting that the cross-listed stock is in effect a new security that U.S.  investors quickly bring into their portfolios.  Second, the effect of financial liberalization on capital flows is more nuanced than is suggested by event studies: A reduction in capital controls results in increased inflows only when the controls were binding.  Among the standard push and pull factors, global factors are important---slack U.S.  economic activity is associated with increased flows to emerging markets---and U.S.  investors appear to chase expected, but not past, returns"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/15/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.