The liquidity cost implications arising from the attraction of regional primary listings: Evidence from West Africa

Hearn, B. (2014). The liquidity-cost implications from the attraction of regional primary listings: Evidence from West Africa. Research in International Business and Finance, 30(1): 91-110

33 Pages Posted: 9 Feb 2022

See all articles by Bruce Allen Hearn

Bruce Allen Hearn

University of Southampton; University of Bradford - School of Management

Date Written: February 9, 2014

Abstract

This study reviews the liquidity costs for firms in outlying regions in primary listing on a centralized stock exchange. Using a unique hand-collected sample comprising all listed firms from across West Africa we find evidence that firms from outlying regions do have higher illiquidity costs although these can be mitigated from improvements in transparency that are associated with increasing familiarity amongst investment community of central exchange. This evidence has implications regarding the integration of stock exchanges in developing regions where this is likely to result in a greater concentration of liquidity mitigating intended optimal redistribution of capital and resources

Keywords: Liquidity, Liquidity Determinants, Emerging Financial Markets, West Africa

JEL Classification: G15; N20

Suggested Citation

Hearn, Bruce Allen, The liquidity cost implications arising from the attraction of regional primary listings: Evidence from West Africa (February 9, 2014). Hearn, B. (2014). The liquidity-cost implications from the attraction of regional primary listings: Evidence from West Africa. Research in International Business and Finance, 30(1): 91-110 , Available at SSRN: https://ssrn.com/abstract=4030699

Bruce Allen Hearn (Contact Author)

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

University of Bradford - School of Management ( email )

Emm Lane
Bradford, West Yorkshire Bd9 4JL
United Kingdom

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