 Stock price informativeness, cross-listings and investment decisionsThierry Foucault and Thomas Gehrig Post-Print from HAL Abstract: We show that a cross-listing enables firms to obtain, from the stock market, more precise information about the value of their growth opportunities. Thus, cross-listed firms make better investment decisions and trade at a premium. This theory of cross-listings implies that the sensitivity of investment to stock prices is larger for cross-listed firms. Moreover, the cross-listing premium is positively related to the size of growth opportunities and negatively related to the quality of managerial information. The sensitivity of the premium to the size of growth opportunities increases with factors that strengthen the impact of the cross-listing on price informativeness. Keywords: Cross-listings; Cross-listing premium; Price informativeness; Investment (search for similar items in EconPapers) Published in Journal of Financial Economics, 2008, vol. 88, n° 1, pp. 146-168. ⟨10.1016/j.jfineco.2007.05.007⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00459807 DOI: 10.1016/j.jfineco.2007.05.007 Access Statistics for this paper More papers in Post-Print from HAL |
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