Paper Title
The Information Transfer Effects of Foreign IPO Announcements

Abstract
- In the context of information content and information transfer, this study explores whether the foreign IPOs by the Taiwanese companies in China will lead to the abnormal returns of their industry rivals and affiliates in Taiwan. This study finds that when Taiwanese companies in China launch foreign IPOs, the move is perceived positively by the investors in the host country, and will have a positive effect on the stock prices. Specifically, the disclosure of foreign IPOs information by Taiwanese companies in China is significantly and adversely influence the stock prices of their home-market industry rivals, consistent with the competition hypotheses of foreign IPO announcements. On average, foreign IPO announcements of Taiwanese firms in China will negatively influence the abnormal returns of their affiliate in the home market. Keywords - Foreign IPO, Information content, Information transfer, Cross listing