European Stock-markets in the arena of financial globalization Maude SAINTEVILLE Violaine JURIE (CNRS – France)

European Stock markets in the arena of financial globalization INTRODUCTION Project ESPON TIGER, WP “Financial flows” Financial flows in globalization process : challenges and issues Questioning: → How do stock-exchange flows shape the financial territories? → What is the scope and the spatial pattern of the Europeans markets’ influence and attractiveness ? → What are the places of European stock markets and their financial cities – and how do they function within the hierarchy of financial flows’ networks?

I – Studying the place of stock-markets through cross-border listings Methodology and scientific positioning 1. Scientific and conceptual positioning : assessing spaces and places according to their relational attributes, and their links to other places = Relational approach

I – Studying the place of stock-markets through cross-border listings Methodology and scientific positioning 1. Scientific and conceptual positioning : assessing spaces and places according to their relational attributes, and their links to other places = Mixing local and relational approach 2. Indicators : why are cross-listings relevant? → what a cross-listing is. This paper : corporate issuers who list their shares on equity markets → combine local and relational indicators concerning stock-exchange social network, the financial centre and the country (law and regulation) → long-lasting financial relation ships → quantitative indicator to assess and compare the attractiveness and the place of European stock markets within financial global integration

I – Studying the place of stock-markets through cross-border listings Methodology and scientific positioning 1. Scientific and conceptual positioning : assessing spaces and places according to their relational attributes, and their links to other places = Relational approach 2. Indicators : why are cross-border listings relevant? 3. The data base (2007). Update for year 2010

3. Building up and updating the data base for year 2010 Aim : assessing the position of Europe within the global financial flows. Where do the companies listed on the European markets come from? How do those cross-listing flows structure the pattern of European financial territory? What is the place of European stock-markets within the hierarchy of financial metropolis? → Innovative data-set : worldwide matrix of cross-listing flows. ▲ Dyads : located corporate issuers and listing places of their choice Which kind of market? The sample focuses on the equities of corporate issuers = about 3200 issuers on > 120 stock-markets for → Defining the true origin of the firms, getting over the bias of tax havens : thus the operational residence is preferred to the registration domiciliation (dummy IBC International Business Corporations)

II – First results : unequal attractiveness of European stock-markets (2007) 1. Unequal attractiveness and scope of recruitment of European stock markets

II – First results : unequal attractiveness of european stock-markets (2007) London Stock Exchange : Global Profile

Deutsche Börse : Selective profile

(Macro) Regional profile : Warsaw SE Borsa Italiana

Expanded regional profile : Bolsas y Mercados Españoles

Scope and attractiveness profiles of European stock-markets

II – First results : unequal attractiveness of European stock-markets (2007) 1.Unequal attractiveness and scope of recruitment of European stock markets 2.For the smaller markets, the attractiveness depends on the specialization of the official listing Ex. 3. Ranking European stock-markets into a hierarchy, within the arena of the worldwide financial space (2007)

The place of European markets within the system of dominant flows (Nyusten and Dacey, 1968)

III – Forthcoming studies and results : 1. Evolution of the number of foreign issuers listed on stock-markets between 2007 and 2009

Evolution of the number of foreign issuers listed on stock-markets between 2007 and end 2009

III – Forthcoming studies and results : 1. Evolution of the number of foreign issuers listed on stock-markets between 2007 and Updating and building up the new database for 2010

Building the database

Stock exchanges and foreign issuers in 2010

III – Forthcoming results 1. Evolution of the number of foreign issuers listed on stock-markets between 2007 and Building the database (Violaine Jurie) 3. Third, we have to find convenient methods so as to compare our results with the studies led by the UK team, focussing on cities and financial centres, rather than countries. Mapa Mundi tests and Ucinet would help.

Thank you for your attention.