The effect of cross-listing on trading volume: reducing segmentation versus signaling investor protection

Abdallah, Abed Al-Nasser, Abdallah, Wissam ORCID: https://orcid.org/0000-0001-6038-2387 and Saad, Mohsen 2011. The effect of cross-listing on trading volume: reducing segmentation versus signaling investor protection. Journal of Financial Research 34 (4) , pp. 589-616. 10.1111/j.1475-6803.2011.01303.x

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Abstract

We examine the relation between cross-listing on the U.S. and UK regulated and unregulated exchanges and trading volume for a sample of 500 foreign firms from 34 countries. We find that the increase in trading volume is a function of both reducing segmentation and signaling investor protection. In addition, we find that home market trading volume, firm size, firm returns, and analyst forecast accuracy are the major determinants of a firm's trading volume. We also show that U.S. and UK investors trade foreign securities that originate from low-investor-protection countries more than they trade those from high-investor-protection countries, which is consistent with the bonding hypothesis.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HG Finance
Uncontrolled Keywords:	G14; G15; G18; G32
Publisher:	Wiley
ISSN:	0270-2592
Last Modified:	22 Mar 2023 15:23
URI:	https://orca.cardiff.ac.uk/id/eprint/33099

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