Cross-listing and corporate social responsibility

Narjess Boubakri, Sadok El Ghoul, He Wang, Omrane Guedhami and Chuck C.Y. Kwok

Journal of Corporate Finance, 2016, vol. 41, issue C, 123-138

Abstract: This paper investigates the dynamics of cross-listing and corporate social responsibility (CSR). Using a sample of 10,815 firm-year observations from 54 countries over the period 2002–2011, we find that cross-listed firms have better CSR performance than non–cross-listed domestic firms. This result is robust to endogeneity and different types of cross-listing. We also find that CSR increases (decreases) significantly after cross-listing in (delisting from) U.S. markets. The positive impact of cross-listing on CSR performance is stronger for firms from countries with weaker institutions, lower country-level sustainability, and higher liability of foreignness, and for firms operating in industries with high litigation risk. Finally, we find that cross-listed firms with better CSR performance exhibit higher valuations.

Keywords: Cross-listing; Corporate social responsibility (CSR); Bonding theory; Institutions (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (98)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:41:y:2016:i:c:p:123-138

DOI: 10.1016/j.jcorpfin.2016.08.008

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