The Effects of Market Segmentation and Investor Recognition on Asset Prices: Evidence from Foreign Stocks Listing in the United States  

Oleh:

Foerster, Stephen R. ; Karolyi, G. Andrew

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Journal of Finance (EBSCO) vol. 54 no. 3 (Jun. 1999), page 981-1013.
Fulltext: 981.pdf (608.13KB)

Isi artikel

Non-U.S. firms cross-listing shares on U.S. exchanges as American Depositary Receipts earn cumulative abnormal returns of 19 percent during the year before listing, and an additional 1.20 percent during the listing week, but incur a loss of 14 percent during the year following listing. We show how these unusual share price changes are robust to changing market risk exposures and are related to an expansion of the shareholder base and to the amount of capital raised at the time of listing. Our tests provide support for the market segmentation hypothesis and Merton’s (1987) investor recognition hypothesis.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali