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Dual‐listings on international exchanges: the case of emerging markets’ stocks

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  • Ana Paula Serra

Abstract

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 (London) over the period 1991–1995. I evaluate whether an international dual‐listing has any significant effect on returns, for the particular case of emerging markets’ firms, 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 confirm previous empirical findings on international listings: the firms in my sample experience significant positive abnormal returns before listing and a significant decline in returns following listing. Evidence seems to be supportive of the segmentation hypothesis: dual‐listing effects are more pronounced for emerging markets’ listings and that pattern is similar across exchanges. G15

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  • Ana Paula Serra, 1999. "Dual‐listings on international exchanges: the case of emerging markets’ stocks," European Financial Management, European Financial Management Association, vol. 5(2), pages 165-202, July.
    • Handle: RePEc:bla:eufman:v:5:y:1999:i:2:p:165-202
    DOI: 10.1111/1468-036X.00088
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    Cited by:

    1. Partha Ray & Vinodh Madhavan, 2014. "Price and Volatility Linkages between Indian Stocks and their European GDRs," Proceedings of International Academic Conferences 0300812, International Institute of Social and Economic Sciences.
    2. Vinodh Madhavan & Partha Ray, 2019. "Price and Volatility Linkages Between Indian Stocks and Their European GDRs," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 18(2_suppl), pages 213-237, August.
    3. C Conn & A Cosh & P Guest & A Hughes, 2001. "Long-Run Share Performance of UK Firms Engaging in Cross-Border Acquisitions," Working Papers wp214, Centre for Business Research, University of Cambridge.
    4. Ghadhab, Imen & Hellara, Slaheddine, 2016. "Cross-listing and value creation," Journal of Multinational Financial Management, Elsevier, vol. 37, pages 1-11.
    5. Joanna Adamska-Mieruszewska & Urszula Mrzygłód, 2020. "Foreign listing pricing effects. The case of emerging economies," Bank i Kredyt, Narodowy Bank Polski, vol. 51(4), pages 367-382.
    6. Michael Melvin & Magali Valero, 2009. "The Dark Side of International Cross‐Listing: Effects on Rival Firms at Home," European Financial Management, European Financial Management Association, vol. 15(1), pages 66-91, January.
    7. Ghadhab, Imen, 2021. "Cross-listing and the alignment between short and long-run performance," Journal of Multinational Financial Management, Elsevier, vol. 62(C).
    8. Palani‐Rajan Kadapakkam & Lalatendu Misra, 2003. "Return Linkages between Dual Listings under Arbitrage Restrictions: A Study of Indian Stocks and Their London Global Depositary Receipts," The Financial Review, Eastern Finance Association, vol. 38(4), pages 611-633, November.
    9. Kadapakkam, Palani-Rajan & Meisami, Alex & Shi, Yilun, 2010. "Lost in translation: Delayed ex-dividend price adjustments of Hong Kong ADRs," Journal of Banking & Finance, Elsevier, vol. 34(3), pages 647-655, March.
    10. Ravi Kashyap, 2016. "Hong Kong -- Shanghai Connect / Hong Kong -- Beijing Disconnect (?): Scaling the Great Wall of Chinese Securities Trading Costs," Papers 1603.01341, arXiv.org, revised Sep 2019.
    11. Mitsuru Mizuno & Isaac T. Tabner, 2008. "Choice, Confusion And Competition In The Market For Markets: Aiming For Aim In Three Junior Asian Stock Exchanges," Pacific Economic Review, Wiley Blackwell, vol. 13(5), pages 575-603, December.
    12. Bris, Arturo & Cantale, Salvatore & Hrnjić, Emir & Nishiotis, George P., 2012. "The value of information in cross-listing," Journal of Corporate Finance, Elsevier, vol. 18(2), pages 207-220.
    13. Korczak, Piotr & Bohl, Martin T., 2005. "Empirical evidence on cross-listed stocks of Central and Eastern European companies," Emerging Markets Review, Elsevier, vol. 6(2), pages 121-137, June.
    14. Olga Dodd & Bart Frijns & Aaron Gilbert, 2015. "On the Role of Cultural Distance in the Decision to Cross†List," European Financial Management, European Financial Management Association, vol. 21(4), pages 706-741, September.
    15. Awadh Saeed Bin-Dohry & Hanita Kadir Shahar & Sharmilawati Sabki & David McMillan, 2021. "The determinants of dual listing decision of firms from ASEAN-5," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1917105-191, January.
    16. Ana Paula Serra, 2002. "Event Study Tests: A brief survey," FEP Working Papers 117, Universidade do Porto, Faculdade de Economia do Porto.
    17. Imen Ghadhab & Slaheddine Hellara & Abdelkader Derbali, 2018. "Why do firms make an additional cross-listing? An empirical investigation using multiple failure time model," Journal of Asset Management, Palgrave Macmillan, vol. 19(3), pages 191-203, May.
    18. Ghadhab, Imen & M’rad, Mouna, 2018. "Does US cross-listing come with incremental benefit for already UK cross-listed firms," The Quarterly Review of Economics and Finance, Elsevier, vol. 69(C), pages 188-204.

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