International Cross-Listing and Stock Pricing Efficiency
Author | : Shinhua Liu |
Publisher | : |
Total Pages | : |
Release | : 2010 |
ISBN-10 | : OCLC:1290813081 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book International Cross-Listing and Stock Pricing Efficiency written by Shinhua Liu and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: International cross-listing should subject stocks involved to ameliorated information environment in the host market, resulting in more information being revealed, fed back, and impounded into their prices at home and, thus, higher home-market pricing efficiency. Employing a simple nonparametric test, we present the first large-sample evidence for this hypothesis, and document that foreign cross-listings in the U.S. indeed enhance home-market stock pricing efficiency, net of marketwide efficiency shifts in the concurrent period. In addition, the efficiency benefit applies equally well regardless of home-market development status or cross-listing location. These findings should be of interest to both academics and practioners.