Abstract:

Trading a company's stocks in two different stock exchanges in the same country is stated as cross-listed. While financial statements and cash flow of cross-listed companies are same, prices of stocks vary in each stock exchange. The price difference in the stock exchanges causes the market value of the company to be calculated differently. Because the price difference can affect the investors' decision, the reasons for price differences of cross-listed stocks are researched. Panel Data analysis is done by least squares method in the model by using the 6-years data of 40 companies that are traded in the Shanghai and Hong Kong Stock Exchange for 2010-2015 period. In the model; stock prices and variables such as interest rate, inflation rate, exchange rate, gold price, oil price, return on assets ratio, return on equity ratio and current ratio are used annual data. As a result of analysis, it is determined that the stocks price on the Hong Kong Stock Exchange are affected at the rate of 52,57% by the stock price on the Shanghai Stock Exchange. The stocks price on the Shanghai Stock Exchange are affected at the rate of %38,80 by the stock price on the Hong Kong Stock Exchange.

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