CORSO DI LAUREA IN FINANZA E IMPRESA

Curriculum: Finanza delle imprese

Tesi di laurea in
Advanced corporate finance

Stock exchange merger

Evidence from London Stock Exchange Group

Relatore
Prof. Ottorino Morresi

Candidato
Alessio Trappolini

Abstract
The work aims to study the phenomenon of the integration between financial markets.
Its made possible through a specific case analysis about London Stock Exchange
Group plc (LSE Group). LSE Group plc manages Borsa Italiana Spa and London
Stock Exchange. The merger between the two companies is part of a more general
context of integration, in act in the first years of this decade, firstly in European
capital markets (Euronext, OMX) and secondly in international ones (NYSE-Euronext
and Nasdaq- OMX). The first level of analysis concerns the principals effects on the
markets, in terms of cost reduction and efficiency. It is looking for determinants of the
phenomenon, trying to identify the key factors of the integration process. Secondly,
the work studies the effects that merger produces on listed companies, and if exist
correlation between the benefits and any firms characteristics as: size, foreign
exposure or geographical location. Finally results show that there are benefits from
the integration between two or more markets, and these are distributed asymmetrically
among the companies, focusing mainly among large companies and with foreign
exposure.