Liquidity minimization and cross-listing choice: Evidence based on Canadian shares cross-listed on U.S. venues

Lawrence Kryzanowski and Skander Lazrak

Journal of International Financial Markets, Institutions and Money, 2009, vol. 19, issue 3, 550-564

Abstract: This paper examines whether a Canadian-listed firm seeking to cross-list in the U.S. needs to consider liquidity differences when making a choice among the main U.S. venues (AMEX, NYSE or NASDAQ). After controlling for firm characteristics, we find that trade costs for Canadian shares cross-listed in the U.S. do not depend on the U.S. cross-listing venue. This suggests that the choice of U.S. listing venue may be better motivated by the desire to minimize listing fees or to increase investor recognition and visibility.

Keywords: Cross-listing; Market; fragmentation; Liquidity; Trading; costs (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:19:y:2009:i:3:p:550-564

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