Dual-listed Companies
ثبت نشده
چکیده
Last year, two Australian companies (BHP and Brambles) used a dual-listed company (DLC) structure to facilitate their international expansion. They joined CRA, which had entered into a similar arrangement with RTZ to form Rio Tinto in the mid 1990s. DLC structures remain quite unusual in the international context, with only a few in existence in the major countries today. They involve a company linking with a foreign company in a way that allows each to retain its individual identity, but with the shareholders of the two separate companies receiving a claim on the combined earnings as though they had undertaken a conventional merger. DLCs are an interesting phenomenon because even though in theory the share prices of the two companies, measured in a common currency, should be identical (since they represent identical claims on the future cash flows of the group) in practice substantial divergences in prices are observed. This raises the question of why different markets value the same cash flows differently. This note looks at this issue in relation to the experience of the three Australian companies involved in such structures.
منابع مشابه
The Persistence of Pricing Differentials in Dual-listed Companies in Hong Kong and China
Over the past two decades a number of Chinese companies have issued shares on both the Hong Kong Stock Exchange and on one of the Chinese stock exchanges. The Hong Kong-listed H-shares of Chinese dual-listed companies have traded at a persistent discount rate relative to the China-listed A-shares. As these shares represent the same ownership rights and cash flows, the shares should theoreticall...
متن کاملIs There a âMystery of Currency Exposureâ? An Empirical Study of A-Share Listed Companies
Given companiesâ dynamic responses to expected exchange rate changes, this article improves on current methods of measuring exposure to foreign exchange rate changes by breaking down the spot exchange rate changes into expected changes and unexpected changes. The currency risk exposure coefficients resulting from an empirical analysis of Shanghai Stock Exchange A share listed companies on wh...
متن کاملThe Effect of Internal Control Weakness on Investment Efficiency of Companies Listed in Tehran Stock Exchange
This study explores the effect of internal control weakness on investment efficiency of companies listed in Tehran Stock Exchange. The statistical population included all companies listed in Tehran Stock Exchange during the time period 2012-2015. Purposive sampling was the sampling method. Given the theoretical principles and the research literature, two hypotheses were proposed which were test...
متن کاملThe Impact of Rational Governance on the Financial Performance of Industrial Companies Sample (Pharmaceutical Companies) Listed in Amman Stock Exchange
The study aimed to determine the impact between rational governance and financial performance on a sample of pharmaceutical companies listed in the Amman Stock Exchange. The questionnaire was used to collect data, where (200) inquiries were received (170) valid for statistical analysis were excluded (10) where used in Analysis process (160) of the total questionnaires distributed and to achieve...
متن کامل