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This article examines the differential between the share prices of Taiwanese securities traded on their home market of Taipei versus their trading values offshore in London and New York over the 1998 to 2009 period. In line with prior research on mainland Chinese securities, we examine how the premiums attached to Taiwanese securities abroad are related to exchange rate expectations and investor sentiment. Our cross sectional panel regression analysis identifies significant roles for both market wide and company specific sentiment effects. Additional sentiment effects may be linked with fluctuations in the bid-ask spreads as investor interest waxes and wanes.
