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Main Author: Osmar Hazael Zavaleta Vázqueza
Format: Artículo científico
Language:en
Published: Universidad Nacional Autónoma de México 2016
Subjects:
Online Access:https://www.redalyc.org/articulo.oa?id=39544252005
https://www.redalyc.org/journal/395/39544252005/
https://www.redalyc.org/journal/395/39544252005/html/
https://www.redalyc.org/journal/395/39544252005/39544252005.epub
https://www.redalyc.org/journal/395/39544252005/movil
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author Osmar Hazael Zavaleta Vázqueza
author_facet Osmar Hazael Zavaleta Vázqueza
contents The implicit impact of cross-listing on stock prices: a market microstructure perspective – The case of Latin American markets Osmar Hazael Zavaleta Vázqueza Jaime González Maiz Jiménez Administración y Contabilidad Cross listing Microstructure Information environment Volatility and efficiency The objective of this research is to evaluate the unobserved effect of cross-listing on stock prices of companies from Latin America. Particularly, we study the impact of the issuance of ADRs on volatility and efficiency in the local markets. We employ GARCH models to assess the impact on volatility, once the ADR has been issued, and ARMA models to evaluate the impact on efficiency, once the ADR is listed. Overall, we find that in 82% of the analyzed cases, at least one result shows improvement (i.e. lower volatility and/or more efficiency, once the corresponding ADR has been issued). Further, we find that once the electronic trading systems are implemented in emerging markets, there is an improvement in terms of the information environment, thus reducing the effects of cross-listing. This study contributes to the financial literature because it tests the impact of cross-listing on two specified market microstructure variables, namely volatility and efficiency, through a robust methodology. 2016 artículo científico 0186-1042 https://www.redalyc.org/articulo.oa?id=39544252005 https://www.redalyc.org/journal/395/39544252005/ https://www.redalyc.org/journal/395/39544252005/html/ https://www.redalyc.org/journal/395/39544252005/39544252005.epub https://www.redalyc.org/journal/395/39544252005/movil en http://www.redalyc.org/revista.oa?id=395 Contaduría y Administración application/pdf Universidad Nacional Autónoma de México Contaduría y Administración (México) Num.2 Vol.61
format Artículo científico
id redalyc_39544252005
language en
publishDate 2016
publisher Universidad Nacional Autónoma de México
spellingShingle The implicit impact of cross-listing on stock prices: a market microstructure perspective – The case of Latin American markets
Osmar Hazael Zavaleta Vázqueza
Administración y Contabilidad
Cross
listing
Microstructure
Information environment
Volatility and efficiency
The implicit impact of cross-listing on stock prices: a market microstructure perspective – The case of Latin American markets Osmar Hazael Zavaleta Vázqueza Jaime González Maiz Jiménez Administración y Contabilidad Cross listing Microstructure Information environment Volatility and efficiency The objective of this research is to evaluate the unobserved effect of cross-listing on stock prices of companies from Latin America. Particularly, we study the impact of the issuance of ADRs on volatility and efficiency in the local markets. We employ GARCH models to assess the impact on volatility, once the ADR has been issued, and ARMA models to evaluate the impact on efficiency, once the ADR is listed. Overall, we find that in 82% of the analyzed cases, at least one result shows improvement (i.e. lower volatility and/or more efficiency, once the corresponding ADR has been issued). Further, we find that once the electronic trading systems are implemented in emerging markets, there is an improvement in terms of the information environment, thus reducing the effects of cross-listing. This study contributes to the financial literature because it tests the impact of cross-listing on two specified market microstructure variables, namely volatility and efficiency, through a robust methodology. 2016 artículo científico 0186-1042 https://www.redalyc.org/articulo.oa?id=39544252005 https://www.redalyc.org/journal/395/39544252005/ https://www.redalyc.org/journal/395/39544252005/html/ https://www.redalyc.org/journal/395/39544252005/39544252005.epub https://www.redalyc.org/journal/395/39544252005/movil en http://www.redalyc.org/revista.oa?id=395 Contaduría y Administración application/pdf Universidad Nacional Autónoma de México Contaduría y Administración (México) Num.2 Vol.61
title The implicit impact of cross-listing on stock prices: a market microstructure perspective – The case of Latin American markets
topic Administración y Contabilidad
Cross
listing
Microstructure
Information environment
Volatility and efficiency
url https://www.redalyc.org/articulo.oa?id=39544252005
https://www.redalyc.org/journal/395/39544252005/
https://www.redalyc.org/journal/395/39544252005/html/
https://www.redalyc.org/journal/395/39544252005/39544252005.epub
https://www.redalyc.org/journal/395/39544252005/movil