International Listings and Liquidity: Evidence from Emerging Markets

The internationalization of financial markets has gained drive during the last two decades and all the emerging markets are globalizing their capital markets. Emerging markets can be more dynamic and faster growing than developed markets. Therefore, they are offering exciting opportunities to the investors who are prepared to accept a greater risk of losing some of their money and able to invest over the long term. This book is throwing light on how companies can list their securities in foreign market and the effect of the same on underlying stocks' liquidity and order flow migration. Although there are various benefits of listing in the foreign markets like the opportunity to enhance corporate image, advertise trademarks and products, get better local press coverage, and become more familiar with the local financial community in order to raise working capital locally; because international listing increases the firm's visibility and accountability. Due to this reason many firms from emerging market countries with limited capital markets are cross-listing their shares on the exchanges of developed countries which has enhanced capital market access.