The Impact of International Dual-listing on Stocks
Author | : Luis Fernando Stein Velasco |
Publisher | : |
Total Pages | : 112 |
Release | : 1998 |
Genre | : |
ISBN | : |
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Author | : Luis Fernando Stein Velasco |
Publisher | : |
Total Pages | : 112 |
Release | : 1998 |
Genre | : |
ISBN | : |
Author | : Ana Paula Serra |
Publisher | : |
Total Pages | : 47 |
Release | : 1998 |
Genre | : |
ISBN | : |
This paper examines the effects on stock returns of dual-listing on an international exchange. My sample consists of 70 firms from 10 emerging markets that dual-listed on the NYSE, NASDAQ and SEAQ-I over the period 1991-1995. The theoretical motivation for this paper lies in the context of the segmentation of international capital markets. When a firm dual-lists, it makes its shares available to a broader investor base resulting in better risk sharing. In the particular case of emerging markets, where barriers to investment are more severe in the sense that international investment is, in the limit, precluded by regulatory and ownership barriers, we expect those effects to be more pronounced. Previous literature has looked at the effects of foreign listings and has found support for investor?s awareness and liquidity arguments but is inconclusive regarding the capital markets segmentation explanation. In this paper, I re-examine that issue: I evaluate whether an international dual-listing has any significant effect on returns and I proceed to investigate whether there is evidence to support an International Asset Pricing based explanation. In addition I compare the impact of US and London SEAQ-I listings. My results show that firms experience significant positive abnormal returns before listing and a significant decline in returns following listing and this effect is more pronounced for emerging markets? firms. Moreover, for these firms, the valuation impact is similar across exchanges.
Author | : Ana Paula Serra |
Publisher | : |
Total Pages | : |
Release | : 2007 |
Genre | : |
ISBN | : |
This paper examines the effects on stock returns of dual-listing on an international exchange. My sample consists of 70 firms from 10 emerging markets that dual-listed on the NYSE, NASDAQ and SEAQ-I over the period 1991-1995. The theoretical motivation for this paper lies in the context of the segmentation of international capital markets. When a firm dual-lists, it makes its shares available to a broader investor base resulting in better risk sharing. In the particular case of emerging markets, where barriers to investment are more severe in the sense that international investment is, in the limit, precluded by regulatory and ownership barriers, we expect those effects to be more pronounced. Previous literature has looked at the effects of foreign listings and has found support for investoris awareness and liquidity arguments but is inconclusive regarding the capital markets segmentation explanation. In this paper, I re-examine that issue: I evaluate whether an international dual-listing has any significant effect on returns and I proceed to investigate whether there is evidence to support an International Asset Pricing based explanation. In addition I compare the impact of US and London SEAQ-I listings. My results show that firms experience significant positive abnormal returns before listing and a significant decline in returns following listing and this effect is more pronounced for emerging markets firms. Moreover, for these firms, the valuation impact is similar across exchanges.
Author | : Ruth Janine Freedman |
Publisher | : |
Total Pages | : 60 |
Release | : 1991 |
Genre | : Securities |
ISBN | : |
Author | : Aswath Damodaran |
Publisher | : |
Total Pages | : 40 |
Release | : 1993 |
Genre | : Stocks |
ISBN | : |
Author | : Frank K. Reilly |
Publisher | : |
Total Pages | : 72 |
Release | : 1977 |
Genre | : Stock exchanges |
ISBN | : |
Author | : Arturo Bris |
Publisher | : |
Total Pages | : 39 |
Release | : 2019 |
Genre | : |
ISBN | : |
It is well known that cross-listing domestic stocks in foreign exchanges has significant valuation effects on the listed company's shares. Using a sample of firms with dual shares, we explore the differential effects of cross-listing on prices and we are able to separate the different sources of the benefits of cross-listing. Our results show that even though the market segmentation and bonding effects are both statistically significant, the economic significance of segmentation is more than double that of bonding. Furthermore, we document an economically and statistically significant increasse in the liquidity of both share classes after the listing. Overall, our results explain why less and less firms are willing to list in the U.S.: Sarbanes Oxley has increased the cost of adopting better governance while its benefits are not substantial; and market segmentation has decreased significantly in the last years.
Author | : Olatundun Janet Adelegan |
Publisher | : |
Total Pages | : 28 |
Release | : 2009 |
Genre | : Stock exchanges |
ISBN | : |
Author | : Liu, Lixian |
Publisher | : IGI Global |
Total Pages | : 380 |
Release | : 2014-01-31 |
Genre | : Business & Economics |
ISBN | : 1466650486 |
While many nations are still struggling from the global financial crisis and regaining their financial security, investors are considering alternative options for investing their money; and the secure financial sector is China appears as a viable option. International Cross-Listing of Chinese Firms examines the successful techniques and strategies that Chinese companies are using within their financial practices. It highlights the foreign-based multinational enterprise theories related to the major international stock markets. By providing the latest theories and research, this book will be beneficial for business practitioners, researchers, and managers interested in the relationship between cross-listing and firm valuation of Chinese firms.
Author | : Karen K. Lewis |
Publisher | : |
Total Pages | : 0 |
Release | : 2012 |
Genre | : Economics |
ISBN | : |
How important is foreign diversification? In this paper, we re-examine this question motivated by findings from the literature about foreign companies that are listed on US exchanges. Specifically, domestic portfolios including cross-listed stocks can provide the same diversification as foreign market returns without the need for US investors to go abroad. At the same time, the betas of these foreign stock returns against the US market increase after cross-listing, suggesting diversification worsens over time. In this paper, we assess the impact of these changes on foreign diversification for a US investor. We test for and estimate breaks in the sensitivity of individual foreign stocks listed on US exchanges. We find that roughly half of the changes in betas arise from greater integration between the U.S. and the companies' home markets, not in the companies betas themselves. Moreover, the gains from diversifying into these stocks has declined over time.