EconPapers    
Economics at your fingertips  
 

Cross-listing and value creation

Imen Ghadhab and Slaheddine Hellara

Journal of Multinational Financial Management, 2016, vol. 37-38, 1-11

Abstract: This paper examines the effect of cross-listing and additional cross-listing on firm value for a unique and comprehensive sample of firms listed abroad. Using an event study methodology, we show that, while additional cross-listing has a diminishing effect on firm value, generally the three first listings abroad result in positive price reaction. Our results also show that US exchanges are more conductive to value creation for the post-listing period, while UK exchanges play a greater role for the pre-listing period. We also find, in a multivariate regression analysis that traditional explanations for value creation after cross-listing, related essentially to legal environment and proximity preference, are not significant. Our results provide new empirical evidence showing that the improvement in stock price informativeness around cross-listing is the most responsible for valuation gain.

Keywords: Cross-listing; Firm value; Event study; Price informativeness (search for similar items in EconPapers)
JEL-codes: G14 G15 G30 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1042444X16300378
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:37-38:y:2016:i::p:1-11

Access Statistics for this article

Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth

More articles in Journal of Multinational Financial Management from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-10-13
Handle: RePEc:eee:mulfin:v:37-38:y:2016:i::p:1-11