The determinants of foreign trading volume of stocks listed in multiple markets
Dodd, Olga and Louca, Christodoulos and Paudyal, Krishna (2015) The determinants of foreign trading volume of stocks listed in multiple markets. Journal of Economics and Business, 79. 38–61. ISSN 0148-6195 (https://doi.org/10.1016/j.jeconbus.2014.12.004)
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Abstract
We examine the determinants of the foreign trading volume of European stocks listed in multiple markets. The results suggest that stocks that cross-list in foreign markets that are larger and more liquid than their home markets, and stocks for which foreign investors acquire information at a lower cost, experience higher volumes of trade in foreign markets. Stocks that are cross-listed in the US are more attractive to foreign traders than those cross-listed in European markets. Differences in motives to trade in American vs. European markets are also uncovered. Among the fundamental motives to trade, diversification benefit and stock risk are more important for investors trading in American markets while the difference in trading costs is more vital for investors in European markets. Among the informational motives to trade, the firm’s presence in foreign product markets and the foreign information factor are significant determinants of trading in American markets but not in European markets.
ORCID iDs
Dodd, Olga, Louca, Christodoulos and Paudyal, Krishna ORCID: https://orcid.org/0000-0002-0372-304X;-
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Item type: Article ID code: 51692 Dates: DateEventJune 2015Published16 January 2015Published Online24 December 2014AcceptedSubjects: Social Sciences > Finance
Social Sciences > Commerce
Social Sciences > Commerce > AccountingDepartment: Strathclyde Business School > Accounting and Finance Depositing user: Pure Administrator Date deposited: 17 Feb 2015 12:03 Last modified: 01 Sep 2024 01:10 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/51692