Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
973393 | The North American Journal of Economics and Finance | 2013 | 12 Pages |
Abstract
This study examines whether the trading location affects equity returns of China-backed American Depository Receipts (ADRs) traded in the US. If International Financial Markets are integrated, stock prices should be affected only by their fundamentals; otherwise, stock prices may also be affected by their trading locations/investor sentiment. We find that China ADRs’ returns are affected more by the US market fluctuations than by Chinese market returns. We interpret the results as suggesting that International Financial Markets are at least partially segmented and country-specific investor sentiment affects stock prices.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Xue Wang, Lee J. Yao, Victor Fang,