Does cross-listing signal quality
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The literature on cross-listing generally conveys the impression that cross-listing is good news about a firm. This paper focuses on returns following cross-listing where evidence of positive results from cross-listing is mixed. considering 81 Australian firms, we find that cross-listed firms are less profitable with higher debt levels prior to cross-listing and that they achieve significant negative abnormal returns in the three years following cross-listing. This result holds even for firms seeking the benefits of “bonding” to US disclosure requirements by cross-listing in the more regulated US markets. Our study suggests cross-listing is not an unambiguous positive signal about a firm.
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Peng, Mike; Blevins, D. (2012)An interesting aspect to study the convergence of corporate governance is cross-listing. Cross-listing is when a company lists its shares on more than one stock exchange. In recent decades, there has been a drastic increase ...
Peng, Mike; Su, W. (2014)"What determines the scope of the firm?" is one of the most fundamental questions in strategic management and international business. Yet no previous research has investigated the relationship between the scope of the ...
Liu, Li Xian (2012)Chinese firms that cross-list in China A-share, Hong Kong and New York markets operate in a complexenvironment. Theoretically, when one firm is trading on multiple exchanges, the shares across exchanges are expected to ...