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Evidence on financial globalization and crisis: capital raisings

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  • Galina Hale

Abstract

Financial globalization opened international capital markets to investors and firms all over the world. Foreign capital raisings by firms have increased substantially since the early 1990s in terms of equity as well as debt. I review the literature on the determinants and patterns of cross-border capital raisings and their effects on developments of domestic markets, highlighting the differences between mature and emerging economies. I focus on the effects the introduction of the euro had on European and global capital markets by bringing into existence a currency area comparable in size to that of the United States. Finally, I discuss the effects of financial crises on foreign capital raisings and review capital raisings during the 2007-09 global financial crisis.

Suggested Citation

  • Galina Hale, 2011. "Evidence on financial globalization and crisis: capital raisings," Working Paper Series 2011-04, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfwp:2011-04
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    File URL: http://www.frbsf.org/publications/economics/papers/2011/wp11-04bk.pdf
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    References listed on IDEAS

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    1. Gozzi, Juan Carlos & Levine, Ross & Schmukler, Sergio L., 2010. "Patterns of international capital raisings," Journal of International Economics, Elsevier, vol. 80(1), pages 45-57, January.
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    7. Barry Eichengreen, 2010. "Globalization and the Crisis by Barry Eichengreen," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(03), pages 20-24, October.
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    Cited by:

    1. Chugh, Shrutika & Fargher, Neil & Wright, Sue, 2014. "Cross-listing as a Global Depository Receipt: The influence of emerging markets, regulation, and accounting regime," Journal of Contemporary Accounting and Economics, Elsevier, vol. 10(3), pages 262-276.
    2. Ionuț Bușega, 2015. "The impact of the financial crisis under the effects of increasing global economic interdependence. The case of Eastern and Central Europe Economies," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(55), pages 97-116, March.

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    Keywords

    Globalization; Capital market;

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