Research Discussion Papers, Bank of Finland
Are Expansions Cost Effective for Stock Exchanges? A Global Perspective
() and Markku Malkamäki
Abstract: This paper investigates the existence and extent of
economies of scale and scope among stock exchanges. Evidence from 38
exchanges in 32 countries and 4 continents around the world for the years
1989-1998 indicates the existence of significant economies of scale and
scope. The degree of such economies however differs by size of exchange and
region. The largest stock exchanges show an increasing trend of cost
effectiveness. Exchanges in North America and Europe report substantially
larger economies of scale than those in the Asia-Pacific regions.
Keywords: stock exchanges; mergers; regional alliances; economies of scale; (follow links to similar papers)
JEL-Codes: D40; F33; G20; G28; L22; O33; (follow links to similar papers)
36 pages, December 18, 2000
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