Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/impact-of-international-cross-listing-on-local-exchanges-evidence-from-cyaULQB8yz
References (18)
-
G. Karolyi (1998)
Why Do Companies List Shares Abroad?: A Survey of the Evidence and Its Managerial ImplicationsFinancial Markets, Institutions and Instruments, 7
-
Kent Hargis, Pradipkumar Ramanlal (1998)
When Does Internationalization Enhance the Development of Domestic Stock MarketsJournal of Financial Intermediation, 7
-
S. Saudagaran (1988)
An Empirical Study of Selected Factors Influencing the Decision to List on Foreign Stock ExchangesJournal of International Business Studies, 19
-
(2002)
`The Future of Stock Markets -
Ross Levine, S. Schmukler (2003)
Migration, Spillovers, and Trade Diversion: The Impact of Internationalization on Stock Market LiquidityEmerging Markets: Finance eJournal
-
Kent Hargis (2000)
International cross-listing and stock market development in emerging economiesInternational Review of Economics & Finance, 9
-
Jeffrey Wurgler (1999)
Financial Markets and the Allocation of CapitalERN: Capital; Investment; Capacity (Topic)
-
Wurgler Wurgler (2000)
Financial Markets and the Allocation of CapitalJournal of Financial Economics, 58
-
Matthias Stecher (1997)
Protection Of Minority Shareholders -
Ian Domowitz, Jack Glen, Ananth Madhavan (1998)
International Cross-Listing and Order Flow Migration: Evidence from an Emerging MarketJournal of Finance, 53
-
William Reese, M. Weisbach (1999)
Protection of Minority Shareholder Interests, Cross-Listings in the United States, and Subsequent Equity OfferingsCorporate Finance and Organizations eJournal
-
R. Levine (1999)
Financial Development and Economic Growth: Views and Agenda -
R. Levine, S. Zervos (1996)
Stock Markets, Banks, and Economic GrowthDevelopment Economics
-
G. Alexander, Cheol Eun, S. Janakiramanan (1988)
International Listings and Stock Returns: Some Empirical EvidenceJournal of Financial and Quantitative Analysis, 23
-
R. Rajan, Luigi Zingales (1996)
Financial Dependence and GrowthSPGMI: Compustat Fundamentals (Topic)
-
Levine Levine, Zervos Zervos (1998)
Stock Markets, Banks and Economic GrowthAmerican Economic Review, 88
-
Rajan Rajan, Zingales Zingales (1998)
Financial Dependence and GrowthAmerican Economic Review, 88
-
Stijn Claessens, D. Klingebiel, S. Schmukler (2002)
The Future of Stock Exchanges in Emerging Economies: Evolution and ProspectsBrookings-Wharton Papers on Financial Services, 2002
- Publisher
- Wiley
- Copyright
- Copyright © 2002 Wiley Subscription Services, Inc., A Wiley Company
- ISSN
- 1369-412X
- eISSN
- 1468-2443
- DOI
- 10.1111/j.1369-412X.2002.00038.x
- Publisher site
- See Article on Publisher Site
Abstract
This article examines the impact of international cross‐listings on local stock exchanges by focusing on the experience of Chile. First, we analyse the consequences to the domestically traded shares of a sample of Chilean companies that undertook ADR listings. Our findings show that there is no indication of order‐flow migration from the domestic market following cross‐listings. There is, however, evidence that in the aftermath of cross‐listings trading becomes concentrated in the ADR market. There is also some indication of an increase in the base‐level price volatility of the underlying stock series following cross‐listings. Second, we study the changes in Chile's local stock market vis‐à‐vis the ADR market. We observe that the increase in the size and liquidity of the domestic stock exchange is overshadowed by the rapid growth of the ADR market. From a policy perspective, the continued rise in the number of companies undertaking international cross‐listings can cause the local stock markets to become secondary role players relative to the major foreign exchanges, thus affecting domestic financial development.
Journal
International Review of Finance – Wiley
Published: Sep 1, 2002