Irish Equity Markets: Segmentation and the Provision of Secondary Markets

Abstract

This paper addresses the issue of segmentation of capital markets within the context of the Dublin Stock Exchange. The Dublin Stock Exchange, having moved towards regulatory independence in 1995, was previously an integral part of the International Stock Exchange in London, and Irish firms could choose either a Dublin-only or a joint listing. The authors analyse key characteristics of firms quoted on the Dublin Exchange in 1992 and conclude that there exists evidence of segmentation with differences in characteristic size, gearing and dividend behaviour, and distinctive features of investor profile.