The Development of Emerging Stock Markets and the Demand for Cross-Listing

35 Pages Posted: 31 May 2011 Last revised: 1 Jun 2013

See all articles by Adriana Korczak

Adriana Korczak

University of Bristol - School of Economics, Finance and Management

Piotr Korczak

University of Bristol - Department of Finance and Accounting

Date Written: May 29, 2013

Abstract

This study provides new insights into the link between local stock-market development and the demand for cross-listing. Analyzing 14 Central and Eastern European stock markets over two decades, we find that the link is non-monotonic: cross-listing activity first grows and then decreases as the local market develops. We support that country-level finding with firm-level evidence on non-monotonic preferences to issue and terminate depositary receipt programs. The results have important policy implications and they shed new light on the competitiveness and prospects of local stock markets in emerging economies.

Keywords: cross-listing, depositary receipts, emerging markets

JEL Classification: G15, G32

Suggested Citation

Korczak, Adriana and Korczak, Piotr, The Development of Emerging Stock Markets and the Demand for Cross-Listing (May 29, 2013). Available at SSRN: https://ssrn.com/abstract=1854683 or http://dx.doi.org/10.2139/ssrn.1854683

Adriana Korczak

University of Bristol - School of Economics, Finance and Management ( email )

8 Woodland Road
Bristol, BS8 1TN
United Kingdom
+441173941490 (Phone)

Piotr Korczak (Contact Author)

University of Bristol - Department of Finance and Accounting ( email )

8 Woodland Road
Bristol BS8 1TN
United Kingdom
+44 117 394 1491 (Phone)

HOME PAGE: http://sites.google.com/view/piotrkorczak/home

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