Globalization of Capital Markets: Implications for Firm Strategies

The integration of international capital markets makes it easier for firms to access capital outside of their home countries. To date international business (IB) scholars have developed a rich tradition of research on how globalization of product markets may affect a firm's organizational form and business strategy. Unfortunately, there is a paucity of studies that explore the challenges firms face in capital markets beyond their domestic boundaries, be it equity, debt, or venture capital markets. The objective of this Special Issue is to address these theoretical and empirical gaps in prior IB studies. This paper outlines the main differences between product and capital markets, and explores theoretical and empirical challenges these differences present for international management scholars. We also provide a brief summary of papers in the Special Issue and outline promising avenues for future research.