Impact of Financial Crisis on Cross Listing Indian Corporate: An Empirical Study

Dr. Rachna Jain .


Global financial crisis in 2008 emerged as huge problem in India. Indian Companies have been allowed to tap the global market through cross listing. The study examines the impact on returns, liquidity and volatility of the underlying domestic stocks due to cross listing during financial crisis period. The sample of the study comprises of 235 Indian companies which went for international listing on New York Stock Exchange (NYSE), National Association of Securities Dealers Automatic Quotation (NASDAQ), London Stock Exchange (LSE) and Luxemburg Stock Exchange (LXSE) over the period 1st January, 1991 –31st December, 2014. Out of 203 Indian sampled companies, 87 companies consist of pre financial crisis period while 116 companies consist of post financial crisis period. Various statistical tools like regression, ARCH models, turnover ratios, variance ratios etc. have been used for examining the impact of cross listing on domestic stocks return, liquidity and volatility. Even in global financial crisis period bifurcation, when crisis period considered separately during pre-listing, listing day and post listing period of the underlying domestic stocks, it is found that in long term, a negative and significant change on return of underlying domestic stocks after cross listing while in short term, positive immediate effect has been shown on returns. Liquidity significantly declined after financial crisis while volatility has no significant impact due to global crisis. One probable reason for our empirical findings may be that Indian stock markets are not efficiently integrated as compare to developed markets. Overall results support investor recognition theory. Indian corporates, investors and regulators of stock market mainly get benefit from the results of the study.


Financial crisis, Return, Liquidity, Volatility, Stock Market

Full Text:



Alexander, G. J., Eun, C.S., & Janakiramanan S. (1988). International Listings and Stock Returns: Some Empirical Evidence. Journal of Financial and Quantitative Analysis, 23 (2),135-151.

The Bank of New York, (2009).The Depository Receipt Markets Mid-Yearbook 2009. The Bank of New York Depository Receipts Division.

Batra, A. (2004). Stock Return Volatility Patterns in India. Indian Council For Research on International Economic Relations. Working Paper 124, March.

Biswal, P.C. and Kamaiah, B. (2001). Stock Market Development in India, Is There Any Trend Break? Economic and Political Weekly, Vol. 36, No. 4, pp.377-384.

Chidambaram, P. (2008). Spill – over effects of global crisis will be tackled. The Hindu, Daily, November 19, 2008, pp. 15.

Foerster, S. R., Karolyi, G. A., & Wiener, D.(1998). The Lure of American Exchanges for Canadian Issuers. Research study sponsored by National Public Relations and Scotia Capital Markets.

Foerster, S. R. & Karolyi, G. A.(1999). The Effects of Market Segmentation and Investor Recognition on Asset Prices: Evidence from Foreign Stocks Listing in the United States. Journal of Finance, 54, 981-1013.

Goel, K. & Gupta, R. (2011). Impact of globalization on stock market development in India. Delhi Bussiness Review. Vol. 12, Issue 1, pp. 69-74.

Kumar, M., Bhole, L. M., & Saudagaran, S. M. (2001). The Impact of International Listings on Liquidity: Evidence from the Indian Stock Market. Vikalpa, 26, 35-50.

Kundu, S. (2008). Can the India economy emerge unscathed from the global financial crisis? From (Retrieved December 3, 2008).

Lakshman, N. (2008).World Financial Crisis: India’s Hurting, Too. From

Miller, D. (1999). The market reaction to international cross-listings: Evidence from depositary receipts, Journal of Financial Economics 51, 103–123.

Tripathi, V. & Jain, R. (2012). Short-term Return Effect of International Listing of Stocks: Evidence from Pharmaceutical and Chemical Companies in India. Asia-Pacific Journal of Management Research and Innovation, September 2012, Vol. 8, Issue 3, pp. 255-263.

Tripathy, N. & Jha, M. K. (2010). Indian Stock Market Reaction To International Cross-Listing: Evidence From Depository Receipts. China Business Review, Vol. 9, pp. 1-16.


  • There are currently no refbacks.

Editorial Office:

Educational Research Multimedia & Publications,
S.N. 21, Plot No 24, Mirza Ghalib Road Malegaon Nasik,
Maharashtra India - 423203.
+912554235588, +919764558895,

Copyrights © 2010-2022 - ERM Publications, India     

This work is licensed under

click site richard mille replica a fantastic read rolex replica read the article копии часов read this article orologi replica.