Impact of dual listing of companies’ shares on their liquidity

Economic Annals-ХХI: Volume 173, Issue 9-10, Pages: 38-42

Citation information:
Mazur, I., Sazonov, R., & Smolarek, B. (2018). Impact of dual listing of companies’ shares on their liquidity. Economic Annals-XXI, 173(9-10), 38-42. doi:

Iryna Mazur
D.Sc. (Economics),
Head of the Department of Entrepreneurship,
Taras Shevchenko National University of Kyiv
90-A Vasylkivska Str., Kyiv, 03022, Ukraine

Roman Sazonov
MA (Economics),
Assistant Professor,
Department of Entrepreneurship,
Taras Shevchenko National University of Kyiv;
Chairman of the Board,
LLC «Grad Investment»
Off. 139, 4 Zoolohichna Str., Kyiv, 04119, Ukraine

Bartlomiej Smolarek
MA (Economics),
MA (Law),
Pro Bono Tutor,
Warsaw University;
EY Partner,
Head of Transaction Advisory Services,
Ernst & Young Ltd
1 Rondo ONZ Str., Warsaw, 00-124, Poland

Impact of dual listing of companies’ shares on their liquidity

Abstract. The article deals with the impact of double listing of companies’ shares on their liquidity on the domestic market. The research covers data relating to trade in shares both before and after placing them on international markets.

Empirical testing of the main liquidity indicators, such as the spread and the volumes of trade, which was carried out before (32 weeks) and after (31 weeks) the share issue on the market which is different from the domestic one where the main operating activities of the company were conducted and where initial public offering took place is the basis of the present research.

Historical data of the Warsaw, Prague and Budapest Stock exchanges provide the information basis of the present study. The abovementioned stock exchanges are large regional players, which makes it possible to analyse the specifics of Eastern European companies. The companies included in the sample relate to the following: banks, chemical industry, retailing, oil and gas industry, resources, power generation, media and telecommunications.

Most of the share issues on the foreign markets relating to the companies under consideration date back to the 2014-2015 period. The specifics of the choice of companies is that a significant time frame of about 60 weeks, which is more than one calendar year, is required to conduct the analysis. We analysed local companies from the selected region that accessed external capital markets in the period between 2016 and 2018. Yet, after considering the companies, we did not include them in the analysis due to a lack of sufficient relevance.

The study shows how significant the impact of share issue on foreign markets on liquidity of shares of companies on the domestic market can be.

Accessing foreign capital markets increases the investment attractiveness of individual companies and the securities market of the country as a whole, provided there is a sufficient number of reliable issuers, which in turn leads to the development of investment potential.

The research results show that there is a decrease in the spread of shares and a positive effect on the growth of trading volumes on the domestic stock market after the placement of shares on other markets in relation to similar average indicators of the relevant markets.

Keywords: Share; International Listing; Stock Exchange; Liquidity; Spread; Volumes of Trade; Double Listing

JEL Classіfіcatіon: О10



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Received 8.09.2018