The price difference of the Chinese dual-listed companies is a interesting issue. The price of the same asset should be consistent after risk-adjusted, but there is an obvious difference between A-share and H-share which the same company¡¦s shares listed in the Shanghai or Shenzhen Stock Exchange and Hong Kong Stock Exchange. This study found that not only liquidity, demand, required risk premium, and information asymmetry can lead to the price difference, but also manipulation, investor¡¦s preference, and the market emotion. This also verified the investors are more speculative in China than the investors in Hong Kong. Besides, this research analysis the price difference ratio form the viewpoint of valuation, the difference ratio provides a way to understand whether the stock is undervaluation or overvaluation. Finally, this study discussed the Taiwan Depository Receipts. The result indicated that most of the factors which influence the price difference between A-share and H-share also affected the price difference between TDR and the original share. The difference ratio between TDR and original share can also provide some information about the stocks are undervaluation or overvaluation.

M.Comm. (Financial Management) / Since the late 1990s South African companies have started to dual list their shares in different countries, mainly to source capital from larger and more developed economies. In addition to this the level of participation by foreigners in the buying and selling of South African shares has increased. This leads to the question: should a local or a global CAPM (capital asset pricing model) be used to value shares that are traded in integrated global capital markets? This study focuses on dual-listed South African shares as these shares are most likely to be traded by investors globally. This study replicated aspects of earlier studies conducted in the Unites States of America and the United Kingdom, which are developed economies. By applying the same principles within a South African context, valuable insights might be derived relating to companies from developing economies. The main purpose of this study is to investigate the impact of using a global CAPM instead of a local CAPM to determine the cost of equity of South African companies. To this end, a sample of 26 dual-listed South African companies was selected using non-probability judgement sampling. Descriptive research was undertaken using quantitative analysis of secondary data. The cost of equity using the local and global CAPM was calculated for each of the selected dual-listed South African companies. The historical monthly returns of the dual-listed shares as well as each of the local and global risk factors during the period from 1 January 2005 to 31 December 2009 were used to calculate the local and global beta coefficients. The estimates of the local and global cost of equity were compared to ascertain whether there were significant differences for individual shares, as well as across different market sectors. While the results from similar previous studies on shares of developed countries by Koedijk and van Dijk (2004:474); Koedijk et al (2002:911); and Mishra and O‟Brien (2001:28) indicated insignificant differences between the local and global CAPM, this study indicated differences of 400 basis points and above for the sample of dual-listed South African companies. The findings in this study therefore suggest that the findings from studies conducted in developed economies cannot be generalised for companies in developing economies. In the South African market, shares across different sectors behave differently towards global risk factors; therefore this study highlighted the need for financial analysts to carefully consider using the global CAPM instead of the local CAPM when valuing shares that are traded in globally integrated capital markets. Using the incorrect cost of equity may result in incorrectly valuing a company as well as incorrect decision making.

Thesis (M. Com. (Accountancy))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Accountancy, 2015. / ABSTRACT The extractive activities industry includes entities that explore for, discover, develop and extract deposits of minerals, oil and natural gases. Recent research conducted has concluded that accounting for the assets and expenditure together with the disclosure requirements in this industry are not comprehensively addressed by current International Financial Reporting Standards (IFRS). The debate surrounding the accounting and disclosure alternatives in the industry as well as movements to standardise them have been ongoing since the 1890s. The latest movement by the International Accounting Standards Board (IASB) resulted in a project team publishing the Discussion Paper DP/2010/1 – Extractive Activities of April 2010 (Discussion Paper). The Discussion Paper presents disclosures determined to provide the most useful information to the users of the industries financial statements. The IASB have paused this topic and it will not be added to the agenda in the near future, however, this Discussion Paper is likely to form the foundation of a new IFRS. This research report will assess how the reserves and related disclosures currently prepared by entities in the mining or oil and gas industry compare to the proposed disclosure requirements of the Discussion Paper. This research report uses a mixed methodology. Quantitative analysis, through the use of a disclosure checklist, dominates the study which covers two years. The results of this study are then qualitatively and compared per proposed disclosure, against market capitalisation, by listing sector, by external auditor and whether the entity has a single or a dual-listing. Overall the study shows that the current disclosures of the entities do not satisfy the proposed disclosures of the Discussion Paper. Entities in the extractive activities industry would need to invest more into financial reporting in order to achieve compliance with the disclosures should they ever form part of an IFRS. The findings do indicate that the number of disclosures provided is dependent on the size of the entity. The two entities PRG/0500709A i found to have the most disclosures are in the gold mining sector and have an alternative listing on the New York Stock Exchange.

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 theoretically trade at the same price. The price differential between H-shares and A-shares should decrease as international markets continue to converge. The paper analyzes the persistence of the discount rates and the effects of both market and investor sentiment on the price disparity between the two shares. The paper also examines whether certain sectors consistently trade at larger discount rates relative to others.

M.Com. (Financial Management) / In 1995, the South African government needed to address the widening poverty gap. The manner in which they would do so was through the process of financial market liberalisation of the JSE. The intention behind the process of financial liberalisation on the JSE was to increase the liquidity of the JSE. The significance of this study is that it would provide regulators of financial markets, policy makers and academics information on the effectiveness of the liberalisation of the JSE on dual listed companies’ ability to grow in a sustainable manner. Previous literature has found the risk sharing benefit associated with financial market liberalisation. With the increased number of participants in market would increase the chance of successful trades. Previous studies have found that there is a positive correlation with financial market liberalisation and market liquidity. Exchange controls have been put in place to prevent capital flight in sudden economic down turns. Certain studies have found that financial market liberalisation on has had minimal impact on the market capitalisation This study investigates the effects the financial liberalisation on the JSE had on dual listed companies’ sustainable growth rates. A purposive sampling technique was used in this study and a sample of 28 dual listed companies was selected. The approach to this study was an explanatory approach and the research paradigm was archival. The statistical tools which were utilised in the study were broken into two components, namely, the descriptive statistics and the inferential statistics. The data that were used in the study were secondary data collected from I-Net Bridge. The results of this study indicated that the financial liberalisation of the JSE did have an impact on the sustainable growth rates of dual listed companies on the JSE. Recommendations were made in this study for the dual listed companies to improve their net profit margins. The methods in which the dual listed companies are able to improve their net profit margins are by finding competitive sustainable advantages. It was further recommended that the Income Tax Act No. 58 of 1962 needs to be amended to create a conducive economic environment for the dual listed companies to grow sustainably. It was further recommended that the dual listed companies on the JSE invest in human capital in order to improve their sustainable growth rate.

This thesis comprises, firstly, a careful and detailed description of the institutional workings of the Chinese stock market; secondly, a literature review of the Chinese segmented markets and dual-listed shares price premium; and thirdly, three evidence-based contributions designed to cast new light on the Chinese A-shares premium puzzle. Publicly-listed firms in China, under certain criteria, can issue two different types of shares, namely A-shares and B-shares, to local and foreign investors respectively. These shares carry the same rights and obligations, but are however priced differently due to market segmentation. After a review of the literature on determinants of the premium, the first contribution offers a complementary explanation. I propose that the premium reflects the difference in valuation preferences between the local and foreign investors, i.e., local investors pay more attention to stock liquidity, while foreign investors pay more attention to firm’s intrinsic value, and so firms having more favorable fundamentals tend to have lower premia. The second contribution involves the examination of a controversial question that which investor group is better informed about local assets, by testing the direction of information flows between the A- and B-shares markets. Both time series methods, and panel data techniques which are used for the first time in this context, are employed, in order to get a distinct and more insightful picture against the current literature. The third contribution compares and contrasts institutional settings of China, Singapore and Thailand which have similar market segmentation and dual-listing systems; examines whether or not the premia in the three countries are caused by same factors; and tries to answer why foreign investors in China pay less, rather than more, as commonly observed in other segmented markets, for identical assets. It provides the first cross-country comparison evidence after 1999 with updated data.

The inability to effectively hedge against unfavourable exchange rate movements, using the current forward exchange rate as the only guideline, is a key inhibiting factor of international trade. Market participants use the current forward exchange rate quoted in the market to make decisions regarding future exchange rate changes. However, the current forward exchange rate is not solely determined by the interaction of demand and supply, but is also a mechanistic estimation, which is based on the current spot exchange rate and the carry cost of the transaction. Results of various studies, including this study, demonstrated that the current forward exchange rate differs substantially from the realized future spot exchange rate. This phenomenon is known as the exchange rate puzzle. This study contributes to the dynamics of modelling exchange rate theories by developing an exchange rate model that has the ability to explain the realized future spot exchange rate and the exchange rate puzzle. The exchange rate model is based only on current (time t) economic fundamentals and includes an alternative approach of incorporating the impact of the interaction of two international financial markets into the model. This study derived a unique exchange rate model, which proves that the exchange rate puzzle is a pseudo problem. The pseudo problem is based on the generally excepted fallacy that current non–stationary, level time series data cannot be used to model exchange rate theories, because of the incorrect assumption that all the available econometric methods yield statistically insignificant results due to spurious regressions. Empirical evidence conclusively shows that using non–stationary, level time series data of current economic fundamentals can statistically significantly explain the realized future spot exchange rate and, therefore, that the exchange rate puzzle can be solved. This model will give market participants in the foreign exchange market a better indication of expected future exchange rates, which will considerably reduce the dependence on the mechanistically derived forward points. The newly derived exchange rate model will also have an influence on the demand and supply of forward exchange, resulting in forward points that are a more accurate prediction of the realized future exchange rate. / Thesis (Ph.D. (Risk management))--North-West University, Potchefstroom Campus, 2011.

The inability to effectively hedge against unfavourable exchange rate movements, using the current forward exchange rate as the only guideline, is a key inhibiting factor of international trade. Market participants use the current forward exchange rate quoted in the market to make decisions regarding future exchange rate changes. However, the current forward exchange rate is not solely determined by the interaction of demand and supply, but is also a mechanistic estimation, which is based on the current spot exchange rate and the carry cost of the transaction. Results of various studies, including this study, demonstrated that the current forward exchange rate differs substantially from the realized future spot exchange rate. This phenomenon is known as the exchange rate puzzle. This study contributes to the dynamics of modelling exchange rate theories by developing an exchange rate model that has the ability to explain the realized future spot exchange rate and the exchange rate puzzle. The exchange rate model is based only on current (time t) economic fundamentals and includes an alternative approach of incorporating the impact of the interaction of two international financial markets into the model. This study derived a unique exchange rate model, which proves that the exchange rate puzzle is a pseudo problem. The pseudo problem is based on the generally excepted fallacy that current non–stationary, level time series data cannot be used to model exchange rate theories, because of the incorrect assumption that all the available econometric methods yield statistically insignificant results due to spurious regressions. Empirical evidence conclusively shows that using non–stationary, level time series data of current economic fundamentals can statistically significantly explain the realized future spot exchange rate and, therefore, that the exchange rate puzzle can be solved. This model will give market participants in the foreign exchange market a better indication of expected future exchange rates, which will considerably reduce the dependence on the mechanistically derived forward points. The newly derived exchange rate model will also have an influence on the demand and supply of forward exchange, resulting in forward points that are a more accurate prediction of the realized future exchange rate. / Thesis (Ph.D. (Risk management))--North-West University, Potchefstroom Campus, 2011.