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SEGMENTATION IN AN EMERGING MARKET: INVESTOR RESPONSE TO MEXICAN STOCKS DUALLY-TRADED IN THE U.S.

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In recent years capital markets have become less segmented as political and legal barriers that impede flows of financial capital have eased. As a result, many foreign corporations have chosen to offer their equity for sale in the United States. We examine the returns, risk, volatility and liquidity effects realized by domestic investors for a sample of American depository receipt programs established by Mexican companies.

Abstract

INTRODUCTION

BACKGROUND AND HYPOTHESES

DATA AND METHOD

RESULTS

CONCLUSIONS

REFERENCES

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