I. Mazur, ORCID ID: 0000-0002-2441-8001, Doctor of Sciences (Economics), Professor Taras Shevchenko National University of Kyiv, Kyiv, Ukraine, R. Sazonov, ORCID ID 0000-0002-6099-9309, Chairmanofthe Board “GradInvestment”, Kyiv, Ukraine THEORETICAL-METHODOLOGICAL IMPORTANCE OF INTERNATIONAL LISTING OF STOCKS FOR INVESTORS AND EMITENTS

In the conditions of globalization of the economic environment, the integration processes of the international capital markets are intensifying, which envisages the possibility of placing securities in foreign markets. This gives some benefits to national investors and issuers. These benefits include: scaling up the attraction of investors’ financial resources; strengthening of the business reputation and issuer’s credit rating; Successful placement of shares in the international market contributes to the increase of profits.

International listing of shares increases the prestige and image of the issuer. The main motivation of most companies entering the foreign capital markets is only financial – they plan to increase their capital in the markets of highly developed countries and increase the liquidity of their shares. International listing provides new markets for more active securities that do not require detailed reporting and have significant liquidity. In some cases, the introduction of international listing increases the value of the company’s shares. As a rule, this happens more often in the US, when the market value of shares is higher than that existing on the issuer’s market. Moreover, the fact of an increase in the number of investors who buys company shares increases the liquidity of shares, narrowing the spread. That is, the main motive for stock quotes abroad is to increase the value of its capital and liquidity of shares, which will eventually give an opportunity to attract additional capital. All this contributes to the growth of the number of national companies that market their shares on foreign stock exchanges.

Investigated double listingof shares of companies; discloses the conditions under which the international listing of shares of companies becomes one of the most appropriate ways of financing business; the influence of international listing of companies’ shares on the liquidity of shares in the domestic market, increase of trading volume of shares of the company was revealed; invited Ukrainian joint-stock companies to use the international listing to increase their capitalization.

Keywords: stock; international listing; Stock Exchange; liquidity; spread

Received: 13/11/2017

1st Revision: 27/02/2018

Accepted: 02/03/2018

DOI: https://doi.org/10.17721/1728-2667.2018/197-2/5


  1. Choi, F. and A. Stonehill, 1982, Foreign assets to the U.S. securities markets: The theory, myth, and reality of regulatory barriers, Investment Analyst, 17-26.
  2. Saudaragan S., 1988, An empirical study of selected factors influencing the decision to list on foreign stock exchanges, Journal of International Business Studies 19, 101-127.
  3. Stapleton, R. and Subramanayan M., 1977, Market Imperfections, capital market equilibrium, and corporation finance, Journal of Finance 32, 493-502.
  4. Alexander, G., C. Eun, and Janakiraman S., 1987, Asset pricing and dual listing on foreign capital markets: A note, Journal of Finance 42,151-158.
  5. Errunza, V., and Losq E., 1985, International Asset Pricing under Mild Segmentation: Theory and Test, Journal of Finance 40, 105-124.
  6. Mittoo, U., 1992, Managerial perceptions of the net benefits of foreign listing: Canadian evidence, Journal of International Financial Management & Accounting, Spring, 40-62.
  7. Jayaraman, N., K. Shastri and Tandon K., 1993, The impact of international cross listing on risk and return: The evidence from American Depository Receipts, Journal of Banking and Finance 15, 91-103
  8. Lau S., Diltz D., 1994, Stock returns and the transfer of information between the New York and Tokyo stock exchanges, Journal of Banking and Finance 18, 743-755.
  9. Howe, J., and Kelm K., 1987, The stock price impacts of overseas listings, Financial Management 16, 51-56.
  10. Amihud, Y. and Mendelson H., 1986, Dealership markets: market-making with inventory, Journal of Financial Economics 8, 31-53.
  11. Demsetz, H., 1968, The cost of transacting, Quarterly Journal of Economics 82, 33-53
  12. Stoll, H., 1989, Inferring the components of the bid-ask spread: Theory and empirical tests, Journal of Finance 44, 115-134.
  13. Copeland, T. and Galai D., 1983, Information effects on the bid-ask spread, Journal of Finance 25, 1457-1469.
  14. Glosten, L., 1987, Components of the bid-ask spread and statistical properties of transaction prices, Journal of Finance 42, 1293-1308.
  15. Amihud, Y. and Mendelson H., 1989, The effects of beta, bid-ask spread, residual risk, and size on stock returns, Journal of Finance 44, 479-486.
  16. Stoll, H., 1978, The pricing of dealer services: An empirical study of NASDAQ stocks, Journal of Finance 33, 1152-1173.
  17. Neal, R., 1987, Potential competition and actual competition in equity options, Journal of Finance 42, 511-531.
  18. Noronha, G., Sarin A. and Saudagaran S., 1996, Testing for liquidity effects of international dual listing using intraday data, Journal of Banking and Finance
  19. Lee, I., 1992, Dual listings and shareholders’ wealth: evidence from UK and Japanese firms, Journal of Business Accounting and Finance, 19 243-252.
  20. Foerster, S. and Karolyi G., 1993, International listings of stocks: The case of Canada and the U.S., Journal of International Business Studies, Fourth Quarter, 763-783.
  21. Freedman, R., 1991, A theory of the impact of international cross-listing, Working paper, University of British Columbia.
  22. Chowdry, B. and Nanda V., 1991, Multimarket trading and market liquidity, Review of Financial Studies 4, 483-512.
  23. Domowitz, I., Glen J., and Madhavan A., 1995, International cross-listing, ownership rights and order flow migration: Evidence from Mexico, Unpublished manuscript (Northwestern University).