scholarly journals The Key Reasons for Cross - Listing in East African Stock Exchanges by Firms Listed in the Nairobi Securities Exchange

2012 ◽  
Vol 7 (16) ◽  
Author(s):  
Kennedy Munyua Waweru ◽  
Ganesh P. Pokhariyal ◽  
Muroki F. Mwaura
Keyword(s):  
Stock Exchanges ◽  
East African ◽  
Cross Listing

Synthetic versus Physical Exchange Traded Funds. Spillover and Asymmetric -Volatility Effects

2018 ◽  
Vol 9 (1) ◽  
pp. 15
Author(s):  
Askar KOSHOEV
Keyword(s):  
New York ◽  
Arma Model ◽  
Stock Exchanges ◽  
Exchange Traded Funds ◽  
Chinese Market ◽  
Negative Effects ◽  
Asymmetric Volatility ◽  
Cross Listing ◽  
The Moment ◽  
The Impact

Earning popularity synthetic exchange-traded funds which track their benchmarks by taking positions in derivative contracts are subjects of many debates concerning potential negative effects they may cause. At the moment, available empirical results are scarce and ambiguous. This research investigates the impact of synthetic funds on the stock market by comparing them to their physical alternatives. The spillover and asymmetric volatility effects were identified and analyzed by the deployment of the EGARCH-M-ARMA model. Local legislation on the Chinese market caused the creation of several physical and synthetic ETFs which track same benchmarks. This unique conditions can be employed in order to examine the effects of synthetic ETFs on the market. The sample of this study comprises ETFs which track Chinese A-shares but are listed or cross-listing in Hong Kong or New York stock exchanges. This study broadens the knowledge about synthetic ETFs and their relationships with the markets. Spillover and asymmetric-volatility effects are tested for ETFs, their respective benchmark indices, and general markets indices. The results do not reveal clear evidence that Synthetic ETFs have an impact on the stock markets.

scholarly journals The Effect Of Cross Listing On The Accounting Quality Of Firms Cross Listed In East African Markets

2016 ◽  
Vol 12 (10) ◽  
pp. 403
Author(s):  
Emmah W. Ndirangu ◽  
Cyrus Iraya
Keyword(s):  
Earnings Management ◽  
East Africa ◽  
Value Relevance ◽  
Quality Metrics ◽  
Accounting Quality ◽  
East African ◽  
Cross Listing ◽  
The Cross ◽  
Timely Loss Recognition

Cross listing has been identified as a determinant of accounting quality. Prior empirical studies have differed on the effect of cross listing on accounting quality in different jurisdictions. The study of accounting quality in East Africa has however not incorporated the possible effect of cross listing. This research study sought to establish the effect that cross listing may have on the accounting quality of firms cross listed in East African stock exchanges. The study looked at three accounting quality metrics of firms cross listed in East Africa, namely, earnings management, timely loss recognition and value relevance of accounting information. The earnings management model used was the Lang, Raedy and Yetman (2003) earnings smoothing model. Timely loss recognition was investigated using the Basu (1997) model while value relevance was tested using the Lang, Raedy and Yetman (2003) model. These metrics were tested for differences during a three year period prior to cross listing and a three year period after cross listing. Accounting quality metrics for a total of six cross listed East African companies were analyzed. This study shows that earnings management did not occur around the cross listing dates. The value relevance of information presented by the cross listed firms did not change significantly, meaning that the ability of the summary accounting measures to accurately reflect the underlying economic value of the firms studied still remained as before the cross listing. There was no significant effect in terms of timely loss recognition in light of bad news and no indication of better prudence in the reporting of good news. The study finds that cross listing does not have an effect on the quality of reporting of firms cross listed within the East African Securities Exchanges.

Cross-Listing, Firm Valuation, and Corporate Governance

2013 ◽  
pp. 108-154
Keyword(s):  
New York ◽  
Corporate Governance ◽  
Hong Kong ◽  
Firm Value ◽  
Stock Exchange ◽  
Firm Valuation ◽  
Stock Exchanges ◽  
Refined Theory ◽  
Bonding Theory ◽  
Cross Listing

This chapter examines a unique dataset, which, to the best of my knowledge, has not hitherto been used. It concerns the relationship between corporate governance and firm value in the context of Chinese firms cross-listed on major international exchanges, which include the NASDAQ, the New York Stock Exchange (NYSE), the Hong Kong Main Board, the Hong Kong Growth Enterprise Market (GEM), the Singapore Stock Exchange, and the London Alternative Investment Market (AIM). The study is grounded in the bonding theory, which asserts that stringent corporate governance requirements imposed by overseas regulations enhance firm value. Contrary to this theory, firms listed on stock exchanges in mainland China alone command significantly better value than those that are cross-listed on overseas stock exchanges. This results in the conclusion that the general bonding theory cannot adequately explain how cross-listing affects firm valuation in the Chinese context, and thus a refined theory is required.

scholarly journals What makes stock exchanges succeed? Evidence from cross-listing decisions

2001 ◽  
Vol 45 (4-6) ◽  
pp. 770-782 ◽  
Author(s):  
Marco Pagano ◽  
Otto Randl ◽  
Ailsa A Röell ◽  
Josef Zechner
Keyword(s):  
Stock Exchanges ◽  
Cross Listing

Do Cross-Border Listing Firms Manage Earnings or Seize a Window of Opportunity?

2007 ◽  
Vol 82 (4) ◽  
pp. 1009-1030 ◽  
Author(s):  
Gordian A. Ndubizu
Keyword(s):  
Earnings Management ◽  
Home Country ◽  
Cash Flows ◽  
Equity Capital ◽  
Stock Exchanges ◽  
Window Of Opportunity ◽  
Main Motivation ◽  
Cross Border ◽  
Cross Listing ◽  
And Performance

Firms raising new equity capital at cross-listing (IPO) and those crosslisting existing home-country public shares (non-IPO) benefit from earnings that are high when they cross-list on U.S. stock exchanges. IPO firms have greater benefits than non-IPO firms because they receive cash infusion at listing. I find that performance (ROA) and cash flows peak at cross-listing period for all cross-border firms. Using a matched-firm research design to control for industry and performance, the results suggest that both IPO and non-IPO firms time cross-listing when performance is peaking (seize a window of opportunity). Further tests investigate whether IPO and non-IPO firms differ in their incentives to engage in earnings management at the time of cross-listing. The results suggest that both appear to engage in the same level of earnings management at the time of cross-listing. This suggests that incentives to boost earnings to obtain higher cash infusion are not the main motivation for the earnings management observed. Other incentives, such as greater investor recognition could be a stronger motivation.

scholarly journals From Complementary to Competitive: The London and U.K. Provincial Stock Markets

2020 ◽  
Vol 80 (2) ◽  
pp. 501-530
Author(s):  
Meeghan Rogers ◽  
Gareth Campbell ◽  
John Turner
Keyword(s):  
Stock Markets ◽  
Stock Exchanges ◽  
Industrial Composition ◽  
Cross Listing ◽  
Over Time

For many decades, there were stock exchanges operating in provincial cities across Britain. We analyze why companies listed on these markets and how this changed over time. We find that the provincial exchanges had traditionally been complementary to London, providing a trading venue for smaller regional companies. However, they gradually lost their uniqueness and were increasingly competing with London by listing similar stocks. Much of this change can be explained by shifts in industrial composition, leading to more companies being headquartered and listed in the capital and many of the remaining regional firms cross-listing in London to achieve certification.

scholarly journals Co-integration of Karachi Stock Exchange with major South Asian Stock Exchanges

2014 ◽  
Vol 4 (1) ◽  
pp. 106
Author(s):  
Salleh Nawaz Khan ◽  
Mohamad Saad Aslam
Keyword(s):  
Stock Market ◽  
South Asia ◽  
South Asian ◽  
Stock Markets ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
Cross Listing ◽  
The World ◽  
The Subject ◽  
China And Japan

International cross  listing have   amplified  the interest of  academics   and  investors  to the subject  of  co movement among  the  stock  markets of  the world . This  study  investigates the co integration of  Pakistan stock exchange (KSE 100 index) with  major stock exchanges of south Asia . The results reveals that there is no co integration  of  Pakistan’s stock  market  (KSE100  index)  with china and  Japan stock markets.  However   there  is co integration of Pakistan’s stock market (KSE 100 index) with the stock market of India, Indonesia, Malaysia and Singapore. 

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