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Which stock exchanges are more attractive? The competition analysis of listing and trading performance

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  • Lo, Shih-Fang

Abstract

With the globalization of capital markets, stock exchanges around the world have faced their most challenging era since 2005. While the traditional role of the stock exchange should evolve by enforcing competitive advantage, as the heart of modern capital markets, stock exchanges give rise to both capital demand outflows and capital supply inflows, and both of these have to be taken into consideration. What is it that makes some stock markets more attractive than others from the viewpoint of firms as well as from the viewpoint of investors? This paper focuses on the stock exchanges' performance from an international perspective by combining both the listing competition and trading competition aspects using data for the world's 45 largest stock exchanges. The exchange-specific performances that both take and do not take a country's specific financial regulatory regime into consideration are evaluated. In addition, a competition matrix is designed to help the managerial authorities of stock exchanges around the world to position themselves within the industry.

Suggested Citation

  • Lo, Shih-Fang, 2013. "Which stock exchanges are more attractive? The competition analysis of listing and trading performance," Economic Modelling, Elsevier, vol. 30(C), pages 501-509.
    • Handle: RePEc:eee:ecmode:v:30:y:2013:i:c:p:501-509
    DOI: 10.1016/j.econmod.2012.09.036
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    References listed on IDEAS

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    Cited by:

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    3. Kathryn L Dewenter & Xi Han & Jennifer L Koski, 2018. "Who Wins When Exchanges Compete?* Evidence from Competition after Euro Conversion [Equity returns and integration: is Europe changing?]," Review of Finance, European Finance Association, vol. 22(6), pages 2037-2071.
    4. Moradi-Motlagh, Amir & Babacan, Alperhan, 2015. "The impact of the global financial crisis on the efficiency of Australian banks," Economic Modelling, Elsevier, vol. 46(C), pages 397-406.
    5. Urszula Mrzyglod & Sabina Nowak & Magdalena Mosionek-Schweda & Jakub M. Kwiatkowski, 2021. "What drives the dividend decisions in BRICS countries?," Oeconomia Copernicana, Institute of Economic Research, vol. 12(3), pages 593-629, September.

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    More about this item

    Keywords

    Listing; Trading; Stock market; Data envelopment analysis;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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