Dual-listings on international exchanges: The case of emerging markets¿ stocks

• Type: Article in International Scientific Journal
• Date: 1999

Authors

Serra A.P. (Author) FEP

Journal

Title: European Financial Management

Vol. 5 No. 2

Pages: 165-202

ISSN: 1354-7798

Publisher: Wiley-Blackwell

Indexing

Scopus - 27 Citations

Other information

Authenticus ID: P-00Y-FH9

DOI: 10.1111/1468-036x.00088

Abstract (EN): 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. © 1999 Blackwell Publishers Ltd.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 37