Graduation Year

2026

Date of Submission

4-2026

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Richard C. K. Burdekin

Abstract

The cross-listing premium between a Taiwanese firm's home-market price and its offshore listing offers a direct measure of how foreign investors price Taiwan's geopolitical exposure — an exposure heightened by cross-strait tensions and Taiwan's centrality to global semiconductor production. This paper asks how three geopolitical shocks affected this premium for dual-listed Taiwanese firms, and whether responses differed across offshore venues: Russia's invasion of Ukraine (February 2022), the People's Liberation Army encirclement exercises around Taiwan (May 2024), and the US reciprocal tariff announcement (April 2025). Comparing how the same shock moves the same firm in New York versus London isolates the offshore investor base itself.

I assemble two weekly panels covering June 2020 through December 2025: 6 American Depositary Receipts in New York and 3 Global Depositary Receipts in London. The premium is regressed on three shock dummies and four time-varying controls under firm fixed effects, plus two impulse-window robustness checks.

The same shocks move the two markets differently. Ukraine raises the ADR premium by 1.66 points but London by 13.28 points. The PLA exercises raise the ADR premium by 1.40 points yet lower London's by 11.89 points, the only event with opposite-sign reactions. The tariff shock is insignificant for ADRs but lowers London by 6.97 points. The silicon shield is real but local: visible where Taiwanese shares trade alongside the US technology supply chain, absent in London, where they sit beside a deep mainland China book.

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This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

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