International cross-listing and order flow migration: Evidence from an emerging market

• 成果类型: Article
• 署名作者: Domowitz, I; Glen, J; Madhavan, A
• 署名单位: Northwestern University; University of Southern California
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.00081
• 发表日期: 1998
• 页码: 2001-2027
• 关键词: BID-ASK SPREAD; RISK; segmentation; prices; stocks

摘要

Policymakers in emerging markets are increasingly concerned about the consequences for the domestic equity market when companies list stock abroad. We show that the effects of cross-listing depend on the quality of intermarket information linkages. We investigate these issues with unique data from the Mexican equity market. The impact of cross-listing is complex-balancing the costs of order flow migration against the benefits of increased intermarket competition. These effects are exacerbated by equity investment barriers that induce segmentation of the domestic equity market. Consequently, the benefits and costs of cross-listing are not evenly spread over all classes of shareholders.