Stock Market Integration

Stock-Return Co-Movements and Institutional Quality: An Empirical Investigation of the European Emerging Markets

“…One of a study with a broad sample in recent year, Dorodnykh [42] The institution is defined as the rules of the game in a society [44] which includes the "humanly devised" that contrasts with other economic fundamentals, "the rules of the game" to set "constraints" on human behavior, and the incentives which transmit effects of institution to economic activities [45]. Thus, the better institution reduces asymmetric information problem, transaction cost, and risk; and they, in turn, increase the efficiency of both market and asset allocation [46] [47] [48], including the stock market [49] [50].…”

The Integration of Stock Exchanges: The Case of the Latin American Integrated Market (MILA) and its Impact on Ownership And Internationalization Status in Colombian Brokerage Firms

“…In Latin America this tendency, appears with the creation of MILA, the market integration project that attempts to merge the stock exchange markets of Chile, Peru and Colombia, providing the benefits of lowering transaction costs, improving cross border trade efficiencies and allowing investors to diversify their portfolios (Dorodnykh, 2014). This integration is said to have some impact on stakeholders of the sector, such as brokerage firms.…”

“…This type of integration is particularly seen within the financial sector in Stock Exchange Markets that currently, as other institutions in the economy, are facing the challenges of globalization (Di Noia, 1998) and need to respond to the needs of the various stakeholders. The latter were identified by Dorodnykh (2014) as the market operators, member and regulators, issuers, investors, technology providers and the infrastructure itself in terms of trading: clearing and settlement.…”

“…In accordance, stock exchanges that are controlled, selfregulated and governed by different types of members such as governments, are being replaced by integrated markets that in the broad sense, according to Dorodnykh (2014), it means that when fully integrated, all potential market participants equally characterized, face the same set of rules when dealing with financial instruments and/or services, have equal access those financial instruments and/or services, and are treated equally when they are active in the market. To make this possible, mergers and acquisitions, as attempts of cooperation, have become a valuable strategy to increase the value of stock exchanges and ensure competitiveness, efficiency and growth, which is the ultimate objective of these institutions (Cybo-Ottone and Murgia, 2000; Domowitz, 1995;Domowitz & Steil, 1999;Hasan & Schmiedel, 2004;Kokkoris & Olivares-Caminal, 2008as quoted in Dorodnyk, 2014.…”

“…The most important factors that have motivated these changes in the structure of the stock exchanges and even in the framework in which they operate, are the advances in information and communication technologies, market deregulation or liberalization, the removal of statutory controls and increased competition (Di Noia, 1998;Dorodnykh, 2014;Mobarek, 2013;Raj & Dhal, 2008). As well as the related benefits of the integration process, directly associated with increased competitiveness, transparency, a better flow of information, cost efficiency and accountability (Dorodnyk, 2014).…”