Show simple item record

dc.contributor.authorWilms, Heathen_NZ
dc.date.available2011-04-07T03:15:36Z
dc.date.copyright2005-05-06en_NZ
dc.identifier.citationWilms, H. (2005, May 6). Market segmentation in New Zealand and the benefits of listing on the ASX (Thesis). Retrieved from http://hdl.handle.net/10523/1444en
dc.identifier.urihttp://hdl.handle.net/10523/1444
dc.description.abstractInternational asset pricing models suggest that firms in segmented markets which cross list on international exchanges should benefit through a lower cost of capital. Various factors may affect how much the cost of capital falls. Using a sample of 15 New Zealand firms which have cross listed on the ASX we examine changes in the cost of capital resulting from ASX listing and the material benefits to shareholders. On average New Zealand firms experience a significant 2.58% abnormal return from one day before to one day after listing on the ASX. Although no significant benefits are observed over the long term there is some evidence to suggest that the cost of capital fell on average. It is also shown that the stringent foreign listing rules introduced by the ASX in 2001 may have had a negative impact on shareholder wealth. Larger firms experience a greater abnormal return around ASX listing which suggests that large New Zealand firms face excess share supply problems that can be mitigated. However, it appears that the Australian and New Zealand markets are integrated enough to eliminate most of the benefits of cross listing.en_NZ
dc.subjectasset pricing modelsen_NZ
dc.subjectsegmented marketsen_NZ
dc.subjectcross listen_NZ
dc.subjectcost of capitalen_NZ
dc.subjectASXen_NZ
dc.subjectNew Zealanden_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshHG Financeen_NZ
dc.titleMarket segmentation in New Zealand and the benefits of listing on the ASXen_NZ
dc.typeThesisen_NZ
dc.description.versionUnpublisheden_NZ
otago.bitstream.pages35en_NZ
otago.date.accession2006-08-26en_NZ
otago.schoolFinanceen_NZ
thesis.degree.disciplineFinanceen_NZ
thesis.degree.grantorUniversity of Otagoen_NZ
thesis.degree.levelMasters Thesesen_NZ
otago.interloanyesen_NZ
otago.openaccessAbstract Only
dc.identifier.eprints331en_NZ
otago.school.eprintsFinance & Quantitative Analysisen_NZ
dc.description.referencesAgoston, K., 2003. Joint Effect of Uncertainty and Market Size on the Price. Unpublished working paper. Budapest University of Economic Sciences and Public Administration Amihud, Y., Mendelson, Haim. 1986. Liquidity and Stock Returns. Financial Analysts Journal. Vol 42. No3 pp 43-49. ASX, 2002. Continuous disclosure, the Australian experience. [Online] ASX website Available: www.asx.com [accessed 20 February 2004] ASX, 2002. ASX response to submissions received following the exposure draft for ASX exempt admission criteria. 5 June. ASX website Bartholdy, J., Fox, K., Gilbert, C., Hibbard, R., McNoe, W., Potter, M., Shi, J., Watt, K. 1996. Estimating Beta For New Zealand Companies. New Zealand Investment Analyst. Black, F. 1974. International Capital Market Equilibrium With lnvestemnt Barriers. Journal of Financial Economics. Vol 1. No 1. pp 337 - 352. Cheng, M, 2003. Pretrade Cost Analysis and Management of Implementation Shortfall. 2003 AIMR Conference Papers Doukas, J., Switzer, L. 2000. Common Stock Returns and International Listing Announcements: Conditional Tests of the Mild Segmentation Hypothesis. Journal of Banking and Fiannce. Vol 24. pp 471 - 502. Eagles, J., 2002. NZ companies rush to ASX, others rush away. New Zealand Herald. 13 April Errunza, V., Losq, E,. 1985. International asset pricing under mild segmentation: Theory and test. Journal of Finance 40, 105-124. Errunza, V., Miller, D., 2000. Market Segmentation and the Cost of Capital in International Equity Markets. Journal of Financial and Quantitative Analysis. Vol 35 No 4. Foerster, S., Karolyi, A., 1996. The effects of market segmentation and investor recognition on asset prices: Evidence from foreign stock listings in the US. Journal of Finance 54, 981-1013 Henry, P. 2000. Stock Market Liberalization, Economic Reform, and Emerging Market Equity Prices. Journal of Finance. Vol 55. pp 529 - 564 Hopkinson, M., McLaughlin, F., Williams, T. 2001. ASX promises to increase its threshold for foreign exempt companies. Chapman Tripp Counsel. 12 November Kim H., Singal. 1993 Opening of Stock Markets in Emerging Economies: Effect on Portfolio Flows and Volatility of Stock Prices Portfolio Investment in Developing Countries World Bank Discussion Paper, The World Bank, Washington, D.C., December 1993, pp. 383-403. McEwen, D., 2002. Australia's gravitational pull is increasing. New Zealand Herald, 25 March Merton, R., 1987. presidential address: A simple model of capital market equilibrium with incomplete information. Journal of Finance 42, 3-29 Miller, D., 1999. The market reaction to international cross-listings: evidence from depository Receipts. Journal of Financial Economics 51, 103-123. Mittoo, U. 2003. Globalization and the Value of US ILsting: Revisiting Canadian Evidence. Journal of Banking and Finance. Vol 27. pp 1629 - 1661. Stulz, M. 1999. Globalization of Equity Markets and the Cost of Capital. NBER Working Paper. National Bureau of Econom ir R- ,;eq rch, 1050 Massachuesetts Avenue, Cambridge, MA 02138.en_NZ
 Find in your library

Files in this item

FilesSizeFormatView

There are no files associated with this item.

This item is not available in full-text via OUR Archive.

If you would like to read this item, please apply for an inter-library loan from the University of Otago via your local library.

If you are the author of this item, please contact us if you wish to discuss making the full text publicly available.

This item appears in the following Collection(s)

Show simple item record