The price differential between identical assets trading in different markets : a case study of Mondi Holdings

This study investigates the possible explanatory factors behind the mispricing in dual traded assets, using Mondi Holdings (the PLC listed on the London Stock Exchange and the LTD listed on the Johannesburg Stock Exchange) as a case study. The study documents the existence of substantial mispricing between the Mondi twins, with the LTD trading at an average premium of 9% over the sample period. However, the reclassification of the PLC shares on the JSE resulted in a significant and sharp decline in the LTD premium to an average of 3%, an indication that regulatory controls were significant in sustaining a larger part of the price deviations.

Grantor dc:publisher.institution

Department of Finance and Tax

Year dc:date.issued

2010

Author dc:creator

• Majoni, Akios

Advisor dc:contributor.advisor

• Gstraunthaler, Thomas

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/10796

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/10796