Exchange trading rules, governance, and trading location of cross-listed stocks

Cumming, DJ; Hou, W; Wu, E

Exchange trading rules, governance, and trading location of cross-listed stocks

Cumming, DJ Hou, W Wu, E

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Publisher:: Taylor & Francis (Routledge)
Publication Type:: Journal Article
Citation:: The European Journal of Finance, 2018, 24 (16), pp. 1453 - 1484
Issue Date:: 2018

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Field	Value	Language
dc.contributor.author	Cumming, DJ	en_US
dc.contributor.author	Hou, W	en_US
dc.contributor.author	Wu, E	en_US
dc.date.issued	2018	en_US
dc.identifier.citation	The European Journal of Finance, 2018, 24 (16), pp. 1453 - 1484	en_US
dc.identifier.issn	1351-847X	en_US
dc.identifier.uri	http://hdl.handle.net/10453/130255
dc.description.abstract	This paper shows stock exchange trading rules are of central importance for the trading location of cross-listed stocks. We also consider various measures of sovereign governance and shareholder rights across countries to assess the complementary effects of other legal and institutional drivers of trading activity. The data indicate that the proportion of trades that occurs on an exchange increases at a decreasing rate with the strength of stock exchange trading rules. The effectiveness of stock exchange rules increases with the strength of regulatory institutions in the country hosting the stock exchange. Furthermore, corroborating with our full sample findings, difference-in-difference tests indicate the promulgation of MIFID, which strengthened trading rules within the European Union (EU), has increased the amount of trade in the EU.	en_US
dc.publisher	Taylor & Francis (Routledge)	en_US
dc.relation.ispartof	The European Journal of Finance	en_US
dc.relation.isbasedon	10.1080/1351847X.2015.1089522	en_US
dc.subject.classification	Finance	en_US
dc.title	Exchange trading rules, governance, and trading location of cross-listed stocks	en_US
dc.type	Journal Article
utslib.citation.volume	16	en_US
utslib.citation.volume	24	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	closed_access
pubs.consider-herdc	true	en_US
pubs.issue	16	en_US
pubs.publication-status	Published	en_US
pubs.volume	24	en_US

Abstract:

This paper shows stock exchange trading rules are of central importance for the trading location of cross-listed stocks. We also consider various measures of sovereign governance and shareholder rights across countries to assess the complementary effects of other legal and institutional drivers of trading activity. The data indicate that the proportion of trades that occurs on an exchange increases at a decreasing rate with the strength of stock exchange trading rules. The effectiveness of stock exchange rules increases with the strength of regulatory institutions in the country hosting the stock exchange. Furthermore, corroborating with our full sample findings, difference-in-difference tests indicate the promulgation of MIFID, which strengthened trading rules within the European Union (EU), has increased the amount of trade in the EU.

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http://hdl.handle.net/10453/130255