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Stock price informativeness, cross-listings and investment decisions

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  • Foucault, Thierry

    ()

  • Gehrig, Thomas

    ()

Abstract

In this paper, the authors show that a cross-listing allows a firm to make better investment decisions because it enhances stock price informativeness.

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Bibliographic Info

Paper provided by HEC Paris in its series Les Cahiers de Recherche with number 840.

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Length: 40 pages
Date of creation: 01 Apr 2006
Date of revision:
Handle: RePEc:ebg:heccah:0840

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Postal: HEC Paris, 78351 Jouy-en-Josas cedex, France
Web page: http://www.hec.fr/
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Related research

Keywords: Cross-listings; cross-listings premium; price informativeness; investment decisions; flow-back; ownership.;

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References

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Citations

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Cited by:
  1. Jiang, Li & Kim, Jeong-Bon & Pang, Lei, 2011. "Control-ownership wedge and investment sensitivity to stock price," Journal of Banking & Finance, Elsevier, Elsevier, vol. 35(11), pages 2856-2867, November.
  2. Kyungmin Kim & Benjamin Lester & Braz Camargo, 2012. "Subsidizing Price Discovery," 2012 Meeting Papers, Society for Economic Dynamics 338, Society for Economic Dynamics.
  3. Claessens, Stijn & Schmukler, Sergio L., 2007. "International financial integration through equity markets : which firms from which countries go global ?," Policy Research Working Paper Series 4146, The World Bank.
  4. Moulton, Pamela C. & Wei, Li, 2009. "A tale of two time zones: The impact of substitutes on cross-listed stock liquidity," Journal of Financial Markets, Elsevier, Elsevier, vol. 12(4), pages 570-591, November.
  5. Karolyi, G. Andrew, 2012. "Corporate governance, agency problems and international cross-listings: A defense of the bonding hypothesis," Emerging Markets Review, Elsevier, Elsevier, vol. 13(4), pages 516-547.
  6. Thierry Foucault & Laurent Frésard, 2012. "Cross-Listing, Investment Sensitivity to Stock Price, and the Learning Hypothesis," Review of Financial Studies, Society for Financial Studies, Society for Financial Studies, vol. 25(11), pages 3305-3350.
  7. Foucault, Thierry & Fresard, Laurent, 2014. "Learning from peers' stock prices and corporate investment," Journal of Financial Economics, Elsevier, Elsevier, vol. 111(3), pages 554-577.
  8. Kaniel, Ron & Liu, Shuming & Saar, Gideon & Titman, Sheridan, 2011. "Individual Investor Trading and Return Patterns around Earnings Announcements," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8259, C.E.P.R. Discussion Papers.
  9. Menkveld, Albert J., 2008. "Splitting orders in overlapping markets: A study of cross-listed stocks," Journal of Financial Intermediation, Elsevier, Elsevier, vol. 17(2), pages 145-174, April.
  10. Itay Goldstein & Philip Bond, 2012. "Government intervention and information aggregation by prices," 2012 Meeting Papers, Society for Economic Dynamics 225, Society for Economic Dynamics.
  11. Wölfle, Marco, 2007. "Price Discovery for Cross-Listed Securities from Emerging Eastern European Countries," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 07-067, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Otsubo, Yoichi, 2014. "International cross-listing and price discovery under trading concentration in the domestic market: Evidence from Japanese shares," Journal of Empirical Finance, Elsevier, Elsevier, vol. 25(C), pages 36-51.
  13. Liyan Yang & Itay Goldstein, 2014. "Market Efficiency and Real Efficiency: The Connect and Disconnect via Feedback Effects," 2014 Meeting Papers, Society for Economic Dynamics 154, Society for Economic Dynamics.
  14. Itay Goldstein & Alexander Guembel & James Dow, 2008. "Incentives for Information Production in Markets where Prices Affect Real Investment," 2008 Meeting Papers 270, Society for Economic Dynamics.
  15. Marco Wölfle, 2009. "Information-based trade in Russia and the effects of listing abroad," Economic Change and Restructuring, Springer, Springer, vol. 42(4), pages 229-262, November.
  16. Jeong-Bon Kim & Haina Shi & Jing Zhou, 2014. "International Financial Reporting Standards, institutional infrastructures, and implied cost of equity capital around the world," Review of Quantitative Finance and Accounting, Springer, Springer, vol. 42(3), pages 469-507, April.
  17. Sergio L. Schmukler & Stijn Claessens, 2007. "International Financial Integration Through Equity Markets," IMF Working Papers, International Monetary Fund 07/138, International Monetary Fund.
  18. Joyce Hsieh & Chien-Chung Nieh, 2010. "An overview of Asian equity markets," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, Asia Pacific School of Economics and Government, The Australian National University, vol. 24(2), pages 19-51, November.
  19. Liu, Shinhua, 2007. "International cross-listing and stock pricing efficiency: An empirical study," Emerging Markets Review, Elsevier, Elsevier, vol. 8(4), pages 251-263, December.
  20. Gilberto Loureiro & Alvaro G. Taboada, 2013. "Do Improvements in the Information Environment Affect Real Investment Decisions?," NIPE Working Papers, NIPE - Universidade do Minho 20/2013, NIPE - Universidade do Minho.

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