 Impact of International Cross‐listing on Local Exchanges: Evidence from ChileVivekanand Jayakumar International Review of Finance, 2002, vol. 3, issue 3‐4, 189-211 Abstract: This article examines the impact of international cross‐listings on local stock exchanges by focusing on the experience of Chile. First, we analyse the consequences to the domestically traded shares of a sample of Chilean companies that undertook ADR listings. Our findings show that there is no indication of order‐flow migration from the domestic market following cross‐listings. There is, however, evidence that in the aftermath of cross‐listings trading becomes concentrated in the ADR market. There is also some indication of an increase in the base‐level price volatility of the underlying stock series following cross‐listings. Second, we study the changes in Chile's local stock market vis‐à‐vis the ADR market. We observe that the increase in the size and liquidity of the domestic stock exchange is overshadowed by the rapid growth of the ADR market. From a policy perspective, the continued rise in the number of companies undertaking international cross‐listings can cause the local stock markets to become secondary role players relative to the major foreign exchanges, thus affecting domestic financial development. Date: 2002 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:irvfin:v:3:y:2002:i:3-4:p:189-211 Ordering information: This journal article can be ordered from Access Statistics for this article International Review of Finance is currently edited by Bruce D. Grundy, Naifu Chen, Ming Huang, Takao Kobayashi and Sheridan Titman More articles in International Review of Finance from International Review of Finance Ltd. |
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