Can Regional Cross-listings Accelerate Stock Market Development? Empirical Evidence from Sub-Saharan Africa
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This study analyzes the impact of regional cross-listing of stocks on the depth of the stock markets in sub-Saharan Africa (SSA). It analyzes data from 1990 to 2007 for a panel of 13 stock markets in SSA countries, only some of which have regional cross-listings. Using event study methodology, the paper finds significant positive effects in measures of stock market depth around regional cross-listing events. Overall, growth in the regional crosslisting of stocks facilitates stock market deepening, and the stock markets of countries with regional cross-listings perform better than those without. The study thus suggests that SSA countries can benefit from putting in place the necessary conditions for promoting regional cross-listings and thereby deepening their stock markets. These include sound legal and regulatory frameworks, macroeconomic and political stability, harmonization of listing rules, accounting laws and disclosure requirements across the region, and strong money markets.
Series:
Working Paper No. 2008/281
Subject:
Emerging and frontier financial markets Market capitalization Regional integration Stock markets Stocks
English
Publication Date:
December 1, 2008
ISBN/ISSN:
9781451871395/1018-5941
Stock No:
WPIEA2008281
Pages:
44
Please address any questions about this title to publications@imf.org