Cross-listings and liquidity commonality around the world

Tung Lam Dang, Fariborz Moshirian, Claudia Koon Ghee Wee, Bohui Zhang

Research output: Contribution to journalArticlepeer-review

25 Citations (Scopus)


In this paper, we investigate the effects of international cross-listings on commonality in liquidity. We find that cross-listings have asymmetric effects on cross-listed stocks׳ liquidity commonality that include reducing the stocks׳ liquidity commonality with the local market and increasing the stocks׳ liquidity commonality with the host market. We also find that the negative impact of cross-listings on home liquidity commonality is more pronounced for stocks from countries with high market segmentation, an opaque information environment, and a poor institutional infrastructure. These results suggest that cross-listings reduce the vulnerability of stocks׳ liquidity to aggregate liquidity shocks in the local market.
Original languageEnglish
Pages (from-to)1-26
Number of pages26
JournalJournal of Financial Markets
Publication statusPublished - Jan 2015


  • Liquidity commonality
  • Cross-listings
  • International financial markets


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