Relative industry valuation and cross-border listing

Kee-Hong Bae, Yi Ding and Xiaoqiao Wang

Journal of Banking & Finance, 2020, vol. 119, issue C

Abstract: Using a sample of firms from 40 countries cross-listed in the U.S. during the 1982–2018 period, we find that the discrepancy between a firm's home industry valuation and its corresponding U.S. industry valuation—the relative industry valuation—is an important factor in the listing decision and valuation after listing. International firms whose home market industries are undervalued relative to the corresponding U.S. industries are more likely to cross-list. They also enjoy permanent valuation gains after listing. These firms issue more equity, invest more, and realize higher growth rates.

Keywords: Cross-listing; Industry segmentation; Relative industry valuation; Valuation gains (search for similar items in EconPapers)
JEL-codes: F30 G15 G32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:119:y:2020:i:c:s0378426620301655

DOI: 10.1016/j.jbankfin.2020.105899

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