The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks

Muhammad Shirajul Islam

doi:doi:10.11648/j.ijefm.20190705.11

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The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks

Muhammad Shirajul Islam

Published in International Journal of Economics, Finance and Management Sciences (Volume 7, Issue 5)

Received: 25 July 2019 Accepted: 27 August 2019 Published: 23 October 2019

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Abstract

Being an instrument for international diversification, the populations of Single listed foreign stocks are growing in major capital markets. Since this is a new trend of foreign listing, both investors and issuers may have concerns about the characteristics of these stocks. This paper focuses on thesetypes of stocks from two different sectors (HealthCare and Technology) which are originated from PRC (Peoples Republic of China) and listed only on the US markets. The sample employs 24 companies’ stock returns in the period of May 2011 to August 2013. Correlation test and Granger causality test are applied to identify the relationships and beyond that, the Bivariate Co-integration test and Impulse Response Function test are applied to identify the nature of the relationships between the stocks and both the home and the US market (Sector Index). The study reveals that these single listed stocks do not have any long term effect from both the Home and the Foreign trading markets whereas, the stocks are highly responsive towards the shocks from US markets in a very short term.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 7, Issue 5)
DOI	10.11648/j.ijefm.20190705.11
Page(s)	142-161
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Single Listed Stocks, Foreign Stocks, Foreign Listing, Local Sector Information, Home Market, Foreign Market

References

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APA Style

Muhammad Shirajul Islam. (2019). The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks. International Journal of Economics, Finance and Management Sciences, 7(5), 142-161. https://doi.org/10.11648/j.ijefm.20190705.11

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ACS Style

Muhammad Shirajul Islam. The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks. Int. J. Econ. Finance Manag. Sci. 2019, 7(5), 142-161. doi: 10.11648/j.ijefm.20190705.11

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AMA Style

Muhammad Shirajul Islam. The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks. Int J Econ Finance Manag Sci. 2019;7(5):142-161. doi: 10.11648/j.ijefm.20190705.11

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@article{10.11648/j.ijefm.20190705.11,
  author = {Muhammad Shirajul Islam},
  title = {The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {7},
  number = {5},
  pages = {142-161},
  doi = {10.11648/j.ijefm.20190705.11},
  url = {https://doi.org/10.11648/j.ijefm.20190705.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20190705.11},
  abstract = {Being an instrument for international diversification, the populations of Single listed foreign stocks are growing in major capital markets. Since this is a new trend of foreign listing, both investors and issuers may have concerns about the characteristics of these stocks. This paper focuses on thesetypes of stocks from two different sectors (HealthCare and Technology) which are originated from PRC (Peoples Republic of China) and listed only on the US markets. The sample employs 24 companies’ stock returns in the period of May 2011 to August 2013. Correlation test and Granger causality test are applied to identify the relationships and beyond that, the Bivariate Co-integration test and Impulse Response Function test are applied to identify the nature of the relationships between the stocks and both the home and the US market (Sector Index). The study reveals that these single listed stocks do not have any long term effect from both the Home and the Foreign trading markets whereas, the stocks are highly responsive towards the shocks from US markets in a very short term.},
 year = {2019}
}

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TY  - JOUR
T1  - The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks
AU  - Muhammad Shirajul Islam
Y1  - 2019/10/23
PY  - 2019
N1  - https://doi.org/10.11648/j.ijefm.20190705.11
DO  - 10.11648/j.ijefm.20190705.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 142
EP  - 161
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20190705.11
AB  - Being an instrument for international diversification, the populations of Single listed foreign stocks are growing in major capital markets. Since this is a new trend of foreign listing, both investors and issuers may have concerns about the characteristics of these stocks. This paper focuses on thesetypes of stocks from two different sectors (HealthCare and Technology) which are originated from PRC (Peoples Republic of China) and listed only on the US markets. The sample employs 24 companies’ stock returns in the period of May 2011 to August 2013. Correlation test and Granger causality test are applied to identify the relationships and beyond that, the Bivariate Co-integration test and Impulse Response Function test are applied to identify the nature of the relationships between the stocks and both the home and the US market (Sector Index). The study reveals that these single listed stocks do not have any long term effect from both the Home and the Foreign trading markets whereas, the stocks are highly responsive towards the shocks from US markets in a very short term.
VL  - 7
IS  - 5
ER  -

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Author Information

Muhammad Shirajul Islam

IPE Capital Limited, Dhaka, Bangladesh

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APA Style

Muhammad Shirajul Islam. (2019). The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks. International Journal of Economics, Finance and Management Sciences, 7(5), 142-161. https://doi.org/10.11648/j.ijefm.20190705.11

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ACS Style

Muhammad Shirajul Islam. The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks. Int. J. Econ. Finance Manag. Sci. 2019, 7(5), 142-161. doi: 10.11648/j.ijefm.20190705.11

Copy | Download

AMA Style

Muhammad Shirajul Islam. The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks. Int J Econ Finance Manag Sci. 2019;7(5):142-161. doi: 10.11648/j.ijefm.20190705.11

Copy | Download

@article{10.11648/j.ijefm.20190705.11,
  author = {Muhammad Shirajul Islam},
  title = {The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {7},
  number = {5},
  pages = {142-161},
  doi = {10.11648/j.ijefm.20190705.11},
  url = {https://doi.org/10.11648/j.ijefm.20190705.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20190705.11},
  abstract = {Being an instrument for international diversification, the populations of Single listed foreign stocks are growing in major capital markets. Since this is a new trend of foreign listing, both investors and issuers may have concerns about the characteristics of these stocks. This paper focuses on thesetypes of stocks from two different sectors (HealthCare and Technology) which are originated from PRC (Peoples Republic of China) and listed only on the US markets. The sample employs 24 companies’ stock returns in the period of May 2011 to August 2013. Correlation test and Granger causality test are applied to identify the relationships and beyond that, the Bivariate Co-integration test and Impulse Response Function test are applied to identify the nature of the relationships between the stocks and both the home and the US market (Sector Index). The study reveals that these single listed stocks do not have any long term effect from both the Home and the Foreign trading markets whereas, the stocks are highly responsive towards the shocks from US markets in a very short term.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Local Sector Information on the Performance of Single Listed Foreign Stocks
AU  - Muhammad Shirajul Islam
Y1  - 2019/10/23
PY  - 2019
N1  - https://doi.org/10.11648/j.ijefm.20190705.11
DO  - 10.11648/j.ijefm.20190705.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 142
EP  - 161
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20190705.11
AB  - Being an instrument for international diversification, the populations of Single listed foreign stocks are growing in major capital markets. Since this is a new trend of foreign listing, both investors and issuers may have concerns about the characteristics of these stocks. This paper focuses on thesetypes of stocks from two different sectors (HealthCare and Technology) which are originated from PRC (Peoples Republic of China) and listed only on the US markets. The sample employs 24 companies’ stock returns in the period of May 2011 to August 2013. Correlation test and Granger causality test are applied to identify the relationships and beyond that, the Bivariate Co-integration test and Impulse Response Function test are applied to identify the nature of the relationships between the stocks and both the home and the US market (Sector Index). The study reveals that these single listed stocks do not have any long term effect from both the Home and the Foreign trading markets whereas, the stocks are highly responsive towards the shocks from US markets in a very short term.
VL  - 7
IS  - 5
ER  -

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