Stock price effects analysis between US and Taiwanese online stock trading. (8th December 2008)

• Record Type: Journal Article
• Authors: Tseng, Chiu-Che; Wei, June; Kang, Ching-Tsai
• Is Part Of: International journal of electronic finance. Volume 2:Number 4(2008)
• Page Start: 371
• Page End: 382
• Publication Date: 2008-12-08
• Subjects: stock price effects -- stock price variances -- online trading -- electronic finance -- cross-listings -- American depositary receipts -- ADRs -- effects analysis -- USA -- United States -- Taiwan -- stok prices; Financial services industry -- Computer networks -- Periodicals; Electronic commerce -- Periodicals; 332.178
• Languages: English
• ISSNs: 1746-0069

Abstract

This paper examines online stock price effects of cross-listings American Depositary Receipts (ADRs) in Taiwanese companies. Specifically, decision tree and rule base systems were used to analyse the stock price variances of ADRs in the USA and those in Taiwan market to see if the ADR listed in the US market reflects the real-time information that became available while the US market was open right after the Taiwan market was closed. The results showed that most of the companies had higher accuracy rates of ADRs prediction, and some companies even had more than 60% accuracy rates. This paper concludes that Taiwanese stock price plays the main role in affecting the stock prices in the USA.