Question: 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,
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 stocks 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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