Citation

Discussion Paper Details

Please find the details for DP4987 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Where is the Market? Evidence from Cross-Listings

Author(s): Michael Halling, Marco Pagano, Otto Randl and Josef Zechner

Publication Date: April 2005

Keyword(s): cross-listing, flow-back and trading volume

Programme Area(s): Financial Economics

Abstract: We investigate the distribution of trading volume across different venues after a company lists abroad. In most cases, after an initial blip, foreign trading declines rapidly to extremely low levels. However, there is considerable cross-sectional variation in the persistence and magnitude of foreign trading. The ratio between foreign and domestic trading volume is higher for smaller, more export and high-tech oriented companies. It is also higher for companies that cross-list on markets with lower trading costs and better insider trading protection. Foreign trading is high close to the cross-listing date but decreases dramatically in the subsequent six months. This accords with the ?flow-back hypothesis? that declining foreign trading is associated with the gravitational pull of the home market.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4987

Bibliographic Reference

Halling, M, Pagano, M, Randl, O and Zechner, J. 2005. 'Where is the Market? Evidence from Cross-Listings'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4987