| Abstract: | The level and determinants of cross-border holdings are evaluatedusing data on the ownership structures of 711 MSCI index companiesin 16 European countries. The level of foreign ownership inthe 16 countries is significant, but spread unevenly, with USfinancial institutions controlling the majority of foreign stakes.Countries' borders, rather than company size ranges are themain lines of discrimination between high and low levels offoreign corporate ownership. Major factors influencing the intensityof cross-border links include the proximity of investors tothe destination of capital, and corporate governance. From theperspective of international corporate ownership, the levelof capital market integration in Europe is low and the conceptof the pan-European company remains a long way from being realised.Implications are drawn for future research and integration policy. |
