Abstract

http://ssrn.com/abstract=1011385
 


 



Does Cross Listing Lead to Higher Firm Growth


Inder K. Khurana


University of Missouri at Columbia - Robert J. Trulaske, Sr. College of Business

Xiumin Martin


Washington University in Saint Louis - Olin School of Business

Raynolde Pereira


University of Missouri at Columbia - School of Accountancy


Review of Finance, Forthcoming

Abstract:     
Extant research posits that cross-listing improves firms' access to lower cost external financing. But so far, there is scarce evidence that improved access to external funds through cross-listing contributes to higher firm growth. Documenting the relation between firm growth and cross-listing is critical because the presumption in prior research is that funds raised via cross-listing will be channeled towards potentially profitable projects. Using a sample of firms from 37 countries that are cross-listed in the U.S., we find a positive association between cross-listing and subsequent externally-financed firm growth rates. However, we do not find that increases in externally-financed firm growth after cross-listing vary systematically as a function of the home-country attributes of the cross-listed firms. Overall, our results provide new and direct evidence on the impact of cross-listing on firm growth rates.

Keywords: Cross Listing, External Financing, Cost of Capital, Firm Growth

JEL Classification: G15, G24, G31

Accepted Paper Series


Not Available For Download

Date posted: September 3, 2007  

Suggested Citation

Khurana, Inder K. and Martin, Xiumin and Pereira, Raynolde, Does Cross Listing Lead to Higher Firm Growth. Review of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1011385

Contact Information

Inder Khurana (Contact Author)
University of Missouri at Columbia - Robert J. Trulaske, Sr. College of Business ( email )
331 Cornell Hall
Columbia, MO 65211
United States
573-882-3474 (Phone)
573-882-2437 (Fax)
Xiumin Martin
Washington University in Saint Louis - Olin School of Business ( email )
Saint Louis, MO 63130
United States
Raynolde Pereira
University of Missouri at Columbia - School of Accountancy ( email )
337 Cornell Hall
Columbia, MO 65211
United States
573-882-6253 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 644

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.266 seconds