دانلود رایگان مقاله تاثیر حضور بازار خارجی اضافی در حجم معاملات سهام مبادله شده بین سهامداران

Abstract

This paper aims to address an unanswered question about the effect of additional foreign market presence on the trading volume of cross-listed/traded firms. Using a unique and comprehensive sample of 235 firms with 788 foreign listings/tradings over the period 1980–2013, we find that compared with the decrease in trading volume after the first cross-listing, additional foreign listing/trading results in more shares traded on the stock. Results also show that the effect of additional cross-trading is more important than additional cross-listing for high orders of foreign presences. We find that the increase in trading volume is negatively related to trading costs and positively to arbitrage opportunities. We also find that proximity preference and firm size play significant effects that depend on the order of cross-listing/trading.

6. Conclusion

In this paper, we contribute to the pre-existing literature on cross-listing by examining the effect of additional foreign presence (cross-listing or cross-trading) on trading volume and so we provide a more completely study and better conclusive results about stock liquidity of cross-listed/traded stocks. Our results are as follow. Overall, we find new evidence that additional foreign listing/trading comes with an increased trading volume on the stock, in the local and foreign(s) market(s). When we compare cross-listing with cross-trading effect, we find that the later become more important for high orders of foreign presence. Our results also show that the increase in trading volume is negatively related to culture proximity between the home and foreign market for high orders of crosslisting/trading, which is consistent with investor recognition hypothesis. However, geographic proximity has a positive and significant effect for the second and the fifth orders. Firm’s size seems to have a negative effect on the change in trading volume after listing/trading abroad for the first two additional foreign presences and a positive effect for higher orders of cross-listing/trading. Regression results also show that the effect of additional foreign presence on trading volume for cross-listed/traded stocks is negatively and positively related to respectively transaction costs and the frequency of arbitrage opportunities.