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Stock prices and the location of trade : evidence from China-backed ADRs

conference contribution
posted on 06.12.2017, 00:00 by X Wang, Lee Yao
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 country-specific investor sentiment affects stock prices.

Funding

Category 1 - Australian Competitive Grants (this includes ARC, NHMRC)

History

Start Page

1

End Page

21

Number of Pages

21

Start Date

01/01/2010

Location

Beijing, China

Publisher

PBFEAM

Place of Publication

New Brunswick, NJ

Peer Reviewed

Yes

Open Access

No

External Author Affiliations

Loyola University (New Orleans, La.);

Era Eligible

Yes

Name of Conference

Pacific Basin Finance, Economics, Accounting and Management

Exports

CQUniversity

Categories

Exports