Open AccessNote—Gains from International Dual Listing
Author(s) -
Joseph Yagil,
Zivan Forshner
Publication year - 1991
Publication title -
management science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.954
H-Index - 255
eISSN - 1526-5501
pISSN - 0025-1909
DOI - 10.1287/mnsc.37.1.114
Subject(s) - listing (finance) , variance (accounting) , dual (grammatical number) , business , capital market , distribution (mathematics) , economics , financial economics , econometrics , actuarial science , accounting , finance , mathematics , art , mathematical analysis , literature
This study presents an attempt to explain how international dual listing of securities can reduce the effects of segmented international markets. By applying the mean-variance model we show that, for a return generating process given by the maximum distribution, the expected return on the dually listed security will be higher and the variance associated with it will be lower than for an otherwise identical (domestically) single listed security. This result appears to be consistent with the existence of dually listed securities in capital markets which are otherwise not integrated.utility theory, the single-index model, the mean-variance model, international dual listing