{"product_id":"share-price-divergence-in-mergers-structured-as-dual-listed-companies-von-maria-elena-caruso","title":"Share price divergence in mergers structured as dual-listed companies","description":"\u003cp\u003eIn the last century, sixteen mergers have been  structured as dual-listed companies: from Royal  Dutch Shell in 1907 to Thomson Reuters in 2008. With  such structures, the merging entities retain  separate holding companies and shareholder  registers. In theory, the aggregate market value of  the two companies within a DLC should be no  different than if it were a unified, single-share  company. However, a common observation in dual- listed structures is a divergence from theoretical  parity in the share prices between the constituent  companies. Divergence can be systematic or random  and usually ranges from 0 to +\/- 10%. The relative  performance of the main indices of incorporation,  the liquidity and size of each stock, the  performance of the exchange rates of the currencies  in which the entities operate and investor  perception can be considered as factors influencing  the trading course of one stock, independently on  the other. All of these factors can be represented  by an objective statistical variable that can be  tested for significance. Once tested, these  variables have been used to explain the share price  divergence phenomenon.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783844333794\"\u003e\u003ch3\u003eStatistically significant tests explaining the main factors behind the divergence\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783844333794","offer_id":39495914192989,"sku":"9783844333794","price":59.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/744bb174-08d7-49fa-815b-f9304ed87f9d.jpg?v=1757825146","url":"https:\/\/shop.autorenwelt.de\/products\/share-price-divergence-in-mergers-structured-as-dual-listed-companies-von-maria-elena-caruso","provider":"Autorenwelt Shop","version":"1.0","type":"link"}