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Title: Chinese Cross-Listed Firms - Listed on the New York Stock Exchange
Contributor(s): Hovey, D (author); Hovey, Martin  (author)
Publication Date: 2004
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Abstract: International cross-listing on exchanges with stricter disclosure and regulatory requirements is generally found to be beneficial, particularly for firms from emerging markets. Potential benefits include escaping market segmentation barriers, expansion of the shareholder base, tapping into more liquid markets, risk sharing, minimising the firm's cost of capital, international visibility and maintaining a competitive edge, among others. The primary focus of this paper is on Chinese cross-listed firms that are incorporated domestically in China and listed in New York. Most are also listed domestically and cross-listed in Hong Kong. The core analyses are in the areas of firm visibility, mispricing and market segmentation. The most significant findings drawn from the analyses are that severe mispricing exists between China and the New York stock exchanges, and that this is a product of segmentation between the two markets. Moreover, the firms listed on both the Hong Kong Stock Exchange and the New York Stock Exchange are not substantially mispriced, and, are highly correlated, therefore, it is concluded, that these markets are not segmented. Thus, a significant conclusion drawn was that China and New York are segmented markets, while Hong Kong and New York are not. It was also found that a substantial increase in the level of firm visibility was achieved through listing on the New York Stock Exchange.
Publication Type: Conference Publication
Conference Name: 9th AIBF (Australasian Institute of Banking) Banking and Finance Conference, Melbourne, Australia, September 2004
Conference Details: 9th AIBF (Australasian Institute of Banking) Banking and Finance Conference, Melbourne, Australia, September 2004
Source of Publication: Presented at the 9th AIBF Banking and Finance Conference
Field of Research (FOR): 150203 Financial Institutions (incl Banking)
150303 Corporate Governance and Stakeholder Engagement
150205 Investment and Risk Management
Socio-Economic Outcome Codes: 919999 Economic Framework not elsewhere classified
900102 Investment Services (excl. Superannuation)
900201 Administration and Business Support Services
HERDC Category Description: E2 Non-Refereed Scholarly Conference Publication
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Appears in Collections:Conference Publication
UNE Business School

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