The way how enterprises are organizing their processes is ultimately dictated by the requirements of their markets. Enterprises serving slowly changing market prefer a functional decomposition of their work force into departments with information flows along the hierarchy. Quickly changing markets require quick redefinition of implemented functions and information flows in the distributed infor...

We propose a conditional measure of capital market integration that allows us to characterize both the cross-section and time-series ofexpected returns in developed and emerging markets. Our measure, which arises from a conditional regime-switching model, allows us to describe expected returns in countries that are segmented from world capital markets in one part of the sample and become integr...