International financial integration through equity markets: Which firms from which countries go global?

This paper studies international financial integration analyzing firms from various countries raising capital, trading equity, and/or cross-listing in major financial markets. Using a large sample of 39,517 firms from 111 countries covering the period 1989-2000, we find that, although integration increases substantially over this period, only relatively few countries and firms actively participate. Firms more likely to internationalize are from larger and more open economies, with higher income, and better macroeconomic environments. These firms tend to be larger, grow faster, and have higher returns and more foreign sales. International financial integration will likely remain constrained by country and firm characteristics.