Do multiple foreign listings create value for firms?
Janet D. Payne and
Steve Wen-Jen Lin
The Quarterly Review of Economics and Finance, 2018, vol. 69, issue C, 134-143
In this paper, we study whether firms benefit from listing in multiple foreign markets. Employing a global sample of multiple-listed firms, we compare Tobin’s q for firms cross-listed in one versus two or more markets. Our univariate analysis does not find a cross-listing premium; however, firms that are from/cross-list in certain markets do receive higher valuations. A multivariate analysis shows a multiple-listing effect that is robust to controlling for firm and country-level characteristics as well as self-selection bias. Furthermore, we find strong support for the market segmentation and bonding hypotheses, and weak support for the liquidity hypothesis.
Keywords: Multiple cross-listing; Market segmentation; Bonding hypothesis (search for similar items in EconPapers)
JEL-codes: G15 G12 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:69:y:2018:i:c:p:134-143
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