Electronic Resource
Oxford, UK and Boston, USA
:
Blackwell Publishers Ltd
Journal of international financial management & accounting
8 (1997), S. 0
ISSN:
1467-646X
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
This study investigates the effects of listing on the U.S. exchanges on trading volume for stocks listed on the two Canadian stock exchanges: the Toronto Stock Exchange (TSE) and the Vancouver Stock Exchange (VSE). The results show substantial differences between the two samples. When a TSE security is cross-listed, both trading volume and stock turnover, the number of shares traded as a percentage of number outstanding, almost double their pre-listing levels. In contrast, when a VSE stock is cross-listed, there is only a slight increase in trading volume and a sharp decline in turnover. The TSE is also able to maintain its pre-listing levels of trading volume in cross-listed securities, whereas the VSE loses about half the trading volume in these stocks to the U.S. exchanges. Even after controlling for the firm-specific factors, the Canadian exchange-specific factors remain the dominant factors in explaining the cross-sectional variation in liquidity effects. Neither the differences in trading costs nor in listing and disclosure requirements between the two exchanges explain these results.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/1467-646X.00023
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