Bolsa or NYSE: Price Discovery for Mexican Shares
27 Pages Posted: 25 Nov 2003
There are 2 versions of this paper
Bolsa or NYSE: Price Discovery for Mexican Shares
Abstract
Is price discovery and the calibration of news through American Depositary Receipts or Shares, traded in central markets, superseding local discovery in peripheral markets? This question remains very much open as the evidence we present on the durability of price innovations in two major Mexican stocks that are household words provides little support for the inevitable demise of local markets. Rather it appears that such markets may have some advantage in information efficiency that may compensate for the extra costs.
Keywords: Emerging stock markets, ADR, information efficiency, stock price discovery
JEL Classification: F36, G14
Suggested Citation: Suggested Citation