This study analyzes the impact of regional cross-listing of stocks on the depth of the stock markets in sub-Saharan Africa (SSA). It analyzes data from 1990 to 2007 for a panel of 13 stock markets in SSA countries, only some of which have regional cross-listings. Using event study methodology, the paper finds significant positive effects in measures of stock market depth around regional cross-listing events. Overall, growth in the regional crosslisting of stocks facilitates stock market deepening, and the stock markets of countries with regional cross-listings perform better than those without. The study thus suggests that SSA countries can benefit from putting in place the necessary conditions for promoting regional cross-listings and thereby deepening their stock markets. These include sound legal and regulatory frameworks, macroeconomic and political stability, harmonization of listing rules, accounting laws and disclosure requirements across the region, and strong money markets.The JSE is trailed distantly by the Nigerian Stock Exchange with the second highest market capitalization and number of listed firms. ... This is followed by the USE that has only nine firms, three of which are cross-listed with the NSE, Kenya.
|Title||:||Can Regional Cross-listings Accelerate Stock Market Development? Empirical Evidence from Sub-Saharan Africa|
|Author||:||Olatundun Janet Adelegan|
|Publisher||:||International Monetary Fund - 2008-12-01|