Bolsa or NYSE: Price Discovery for Mexican Shares

27 Pages Posted: 25 Nov 2003

Multiple version iconThere are 2 versions of this paper

Abstract

Is price discovery and the calibration of news through American Depositary Receipts or Shares, traded in central markets, superseding local discovery in peripheral markets? This question remains very much open as the evidence we present on the durability of price innovations in two major Mexican stocks that are household words provides little support for the inevitable demise of local markets. Rather it appears that such markets may have some advantage in information efficiency that may compensate for the extra costs.

Keywords: Emerging stock markets, ADR, information efficiency, stock price discovery

JEL Classification: F36, G14

Suggested Citation

von Furstenberg, George M. and Tabora, Carlos B., Bolsa or NYSE: Price Discovery for Mexican Shares. Journal of International Financial Markets, Institutions and Money, Vol. 14, No. 4, pp. 295-311, October 2004. Available at SSRN: https://ssrn.com/abstract=472225 or http://dx.doi.org/10.2139/ssrn.472225

George M. Von Furstenberg (Contact Author)

Indiana University ( email )

Department of Economics
Wylie Hall, Indiana University
Bloomington, IN 47405-6620
United States
812-856-1382 (Phone)
812-855-3736 (Fax)

HOME PAGE: http://mypage.iu.edu/~vonfurst/

Carlos B. Tabora

Independent ( email )

Address Not available

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