This paper provides an introduction to the problems relating to dual listings (also referred to as cross-listings, parallel listings, double listings), i.e. simultaneous listings of a company’s shares on at least two stock exchanges, subject rarely discussed in doctrine. The paper analyses dual listing as a factor of the integration of the European capital markets and touches upon terminological issues of key importance for the subject.
Various studies have been carried out in relation to the behavior of dual listing stock prices, unfortunately, study on the effects of changes in dual listing stock prices on the Indonesia Stock Exchange (IDX) is still limited. Differences in trading time and stock exchange class between one stock exchange with another in different countries raise an opportunity for the accumulation of information when one of the exchanges is experiencing a closing trading period. Indonesian companies such as PT. Telekomunikasi Indonesia (Persero) Tbk. (TLKM) whose shares are listed on the New York Stock Exchange (NYSE) and IDX experience the difference in time of their transaction which can affect the shares on the NYSE and on the IDX. This study conducted by using daily data from January 2018 to December 2018. This study found that there is a significant effect of changes in TLKM stock prices on the NYSE in (t-1) period to changes in TLKM stock prices on IDX in t-period. This finding proves that there was the existence of transmission of information between the stock exchanges utilized by investors.
Dual listing as a factor of European capital markets integration — introductory issues