Title
When does internationalization enhance the development of domestic stock markets?
Abbreviated Journal Title
J. Financ. Intermed.
Keywords
LIQUIDITY; CONSOLIDATION; FRAGMENTATION; TRANSPARENCY; INVESTMENT; SECURITY; RISK; Business, Finance
Abstract
We develop a model to examine the impact of international cross-listing on domestic market liquidity and trading volume to determine when domestic market development is likely to follow. Greater information transparency between markets increases domestic market liquidity and volume, resulting in market development. Conversely, post-listing order flow migration away from the domestic market reduces its liquidity and volume, resulting in retardation. The net impact is positive and greater when market professionals acquire rather than reveal information, for smaller previously restricted markets, and for cross-listings in larger more transparent markets that have a greater potential to expand the shareholder base. Journal of Economic Literature Classification Numbers: D44, D82, F36, G15. (C) 1998 Academic Press.
Journal Title
Journal of Financial Intermediation
Volume
7
Issue/Number
3
Publication Date
1-1-1998
Document Type
Article
Language
English
First Page
263
Last Page
292
WOS Identifier
ISSN
1042-9573
Recommended Citation
"When does internationalization enhance the development of domestic stock markets?" (1998). Faculty Bibliography 1990s. 2273.
https://stars.library.ucf.edu/facultybib1990/2273
Comments
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