Market Segmentation and Share Price Premium

Autor:	Johnny K.H. Kwok, Kalok Chan
Rok vydání:	2005
Předmět:	Economics and Econometrics 050208 finance 05 social sciences Financial system Share price Monetary economics Liquidity risk Domestic market Liquidity premium Stock dilution Market liquidity Market value added 0502 economics and business Business 050207 economics Market value Finance
Zdroj:	Journal of Emerging Market Finance. 4:43-61
ISSN:	0973-0710 0972-6527
DOI:	10.1177/097265270400400103
Popis:	In China, domestic firms can issue both domestic (A) and foreign (B or H) shares. Domestic investors can only invest in A-shares and foreign investors only in B- and H-shares. Unlike other emerging markets, domestic A-shares are sold at a premium relative to foreign shares. We conjecture that the premium for domestic shares is determined by the limited alternative investment opportunities available to retail investors. The empirical evidence indicates that cross-sectional variation in the premiums for A-shares is negatively related to the relative supply of A-shares, and positively related to the relative supply of foreign shares. There is also evidence that the premiums can be explained by the speculative nature of retail investors, liquidity risk and firm size (market value of free-floating shares).
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::7d6f900d8a69338809c59e5c8cad201c https://doi.org/10.1177/097265270400400103 Zobrazit plný text záznamu