Convergence in the International Financial Markets

다국어 초록 (Multilingual Abstract)

At an alarming rate, many forms of convergence and globalization are proceeding in the international financial markets. In the first section, the current article discusses the adaptation to climatic changes through examining several factors - the dominant roles of institutional investors originating from the United States and the United Kingdom who presently exert considerable pressure on global companies to cater to their needs to attract financing from them; the gradual consolidation across national borders of the securities markets and their consequent regulations; the increasing numbers of foreign companies who are listed on advanced capital markets such as the New York Stock Exchange and the London Stock Exchange; and the growing reliance on direct financing through the capital markets instead of indirect debt financing through commercial banks by leading companies around the world. The current article goes on to explore how transparency is enforced to harmonize national accounting standards with two global standards and focuses on the progression toward a global equity culture. It then questions whether a particular type of convergence will occur in the legal and regulatory realm, bringing about even deeper integration of the international financial markets. In addition, by summarizing recent debates in terms of corporate governance, it examines the sign of commonality in the bi-polar ownership structures. Finally, based on the analysis of several historical models, the current article provides policy recommendations in light of these various changes, especially given the fact that nations have little choice but to embrace these inexorable global trends.

목차 (Table of Contents)

• Ⅰ. Introduction
• Ⅱ. Commonalities Among Advanced Financial Markets: The Progression Toward Convergence
• 1. The Role of Institutional Investors and Shareholder Activism
• 2. International Corporate Control Market
• 3. The Rise of Equity Culture
• 4. The Importance of the Capital Markets
• 5. The Rise of Information Technology
• 6. Harmonization of Accounting Standards and Director Compensation
• Ⅲ. Legal and Regulatory Framework: The Remaining Bastion In Convergence of Financial Markets
• 1. Ownership Structure and Capital Market Growth
• 2. Historical Structure of Governance and Regulatory Framework
• 3. Independent Board of Directors
• 4. Accountability of the Managers
• 5. Private and Public Enforcement and Investor Protections
• 6. Emerging Markets and the Case of Korea
• Ⅳ. Conclusion