What If Trading Location is Different from Business Location? Evidence from the Jardine Group

Posted: 6 Aug 2003

See all articles by Kalok Chan

Kalok Chan

CUHK Business School

Allaudeen Hameed

National University of Singapore (NUS) - Department of Finance

Sie Ting Lau

Nanyang Technological University (NTU) - Division of Banking & Finance

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Abstract

We examine the price behavior and market activity of the Jardine Group companies after they were delisted from Hong Kong in 1994. Although the trading activity of the Jardine Group moved to Singapore, the core businesses remained in Hong Kong and Mainland China. Evidence indicates the Jardine stocks are correlated less (more) with the Hong Kong (Singapore) market after the delisting. This result cannot be explained by various hypotheses, such as relocation of core business, time-varying betas, migration of trading activity, and currency and tax distortions. We conclude that price fluctuations are affected by country-specific investor sentiment.

Suggested Citation

Chan, Kalok and Hameed, Allaudeen and Lau, Sie Ting, What If Trading Location is Different from Business Location? Evidence from the Jardine Group. Journal of Finance, Vol. 58, pp. 1221-1246, June 2003. Available at SSRN: https://ssrn.com/abstract=411143

Kalok Chan

CUHK Business School ( email )

Hong Kong
852 3943 9988 (Phone)

Allaudeen Hameed

National University of Singapore (NUS) - Department of Finance ( email )

Mochtar Riady Building
15 Kent Ridge Drive
Singapore, 119245
Singapore

HOME PAGE: http://www.bschool.nus.edu.sg/staff_profile/cv.asp?ID=3

Sie Ting Lau (Contact Author)

Nanyang Technological University (NTU) - Division of Banking & Finance ( email )

S3-B1B-76 Nanyang Avenue
Singapore, 639798
Singapore
65 790 6051 (Phone)
65 791 3697 (Fax)

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