Global Market Dynamics: The Impact of Home Country Macro-Institutional Quality on NYSE-Listed Non-U.S. Stocks

被引:0
作者
Elliott, Teressa [1 ]
Kim, Jang-Chul [1 ]
Yi, Ha-Chin [2 ]
机构
[1] Northern Kentucky Univ, Haile Coll Business, Highland Hts, KY 41099 USA
[2] Texas State Univ, McCoy Coll Business, San Marcos, TX USA
关键词
Liquidity; information asymmetry; American Depository Receipts (ADRs); spreads; country risk; institutional quality; CROSS-LISTINGS; CORPORATE; TRADE; COSTS;
D O I
10.1142/S0219091525500134
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We investigate liquidity and information asymmetry for a sample of non-U.S. stocks in the NYSE. Using the Worldwide Governance Indicators (WGI), we find that liquidity and information asymmetry measures for non-U.S. stock listings are significantly related to the macro-institutional quality of their home countries such as political risk and absence of violence/terrorism, government effectiveness, voice and accountability, control of corruption, and rule of law. We find non-U.S. stocks from countries with lower institutional quality metrics tend to have lower liquidity and higher information asymmetry. Therefore, improving the institutional quality of a country alleviates information problems and improves market liquidity for non-U.S. stocks listed on the NYSE.
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页数:23
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