An extensive study by Karolyi (1996) reports: (i) the share price reacts favorably to cross-border listings. (ii) the total postlisting trading volume increases on average, and, for many issues, home-market trading volume also increases (iii) liquidity of trading in shares improves overall (iv) the stock’s exposure to domestic market risk is significantly reduced and is associated with only a small increase in global market risk (v) cross-border listings resulted in a net reduction in the cost of equity capital of 114 basis points on average (vi) stringent disclosure requirements are the greatest impediment to cross-border listings     (i), (ii), and (iii).     (iii), (iv), and (v)     (iv), (v), and (vi)     (i), (ii), (iii), (iv), (v), and (vi)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An extensive study by Karolyi (1996) reports:

(i) the share price reacts favorably to cross-border listings.
(ii) the total postlisting trading volume increases on average, and, for many issues, home-market trading volume also increases
(iii) liquidity of trading in shares improves overall
(iv) the stock’s exposure to domestic market risk is significantly reduced and is associated with only a small increase in global market risk
(v) cross-border listings resulted in a net reduction in the cost of equity capital of 114 basis points on average
(vi) stringent disclosure requirements are the greatest impediment to cross-border listings

   

(i), (ii), and (iii).

   

(iii), (iv), and (v)

   

(iv), (v), and (vi)

   

(i), (ii), (iii), (iv), (v), and (vi)

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