Year of Graduation
Anomalies in the Valuation of Companies With a Cross-listing: Evidence from Emerging Markets
This study focuses on anomalies in the valuation of companies with cross-listing, which are based on the difference in the prices of the company's shares on the parent and overseas exchanges. The empirical analysis is conducted on a sample of companies from emerging markets that listed their shares on the New York stock exchange and London stock exchange from 2013 to 2018. To identify the reasons why stock prices on exchanges are different, we build a model with such factors as differences in listing requirements and differences in the index of economic freedom of country of the parent and foreign exchanges, and the impact of the company's share capital structure.