Abstract We explore the link between international stock market comovement and the extent to which firms operate globally. Using stock returns and balance sheet data for companies in 20 countries, we estimate a factor model that decomposes stock returns into global, country- and industry-specific shocks. We find a large and statistically significant link for global shocks. A firm raising its international sales by 10 percent raises the exposure of its stock return to global shocks by two percent. This link has grown stronger over time since the mid-1980s. We find no similarly robust link between international sales and exposure to country-specific shocks.

Analyses of common property extraction under free access follow two distinct paths, traditional and game‐theoretic, giving rise to two standard methodologies. One methodology avoids game‐theoretic analysis by assuming that aggregate extraction in each period induces fel rent dissipation. The second methodology solves for the Marko‐perfect equilibrium of an n‐player extraction game investigating aggregate behavior over time as n → ∞. We show by example that these coexisting standard methodologies can yield conflicting predictions. We then provide conditions, relatively easy to satisfy, sufficient for the two approaches to yield the same predictions.