Long-Run Performance Following Cross-Listing: A Re-Examination

37 Pages Posted: 4 Dec 2007 Last revised: 20 May 2010

See all articles by Cécile Carpentier

Cécile Carpentier

Laval University; Center for Interuniversity Research and Analysis on Organization (CIRANO); University of Lille II - European Center for Corporate Control Studies

Jean-Francois L'Her

Canada Pension Plan Investment Board; Caisse de Depot et Placement du Quebec (CDPQ)

Jean-Marc Suret

Laval University; Center for Interuniversity Research and Analysis on Organization (CIRANO)

Date Written: April 14, 2009

Abstract

We analyze the long-run performance of the population of Canadian firms that cross-list in the US between 1990 and 2005, paying particular attention to cross-delisting companies. We ask why, since numerous firms cross-list to get the advantages associated with cross-listing, these firms' long-run performance is purportedly abnormally poor. Using robust empirical methods, we find no evidence of a significant underperformance by Canadian firms after cross-listing. Rather, we find that the previously documented underperformance following cross-listing can be traced to a combination of the choice of method, sample selection, and survival biases.

Keywords: international cross-listing, abnormal performance, long run, canada

JEL Classification: F30, G14, G15

Suggested Citation

Carpentier, Cécile and L'Her, Jean-Francois and Suret, Jean-Marc, Long-Run Performance Following Cross-Listing: A Re-Examination (April 14, 2009). Available at SSRN: https://ssrn.com/abstract=1045561 or http://dx.doi.org/10.2139/ssrn.1045561

Cécile Carpentier (Contact Author)

Laval University ( email )

Pavilion Palasis Prince
Quebec, Quebec G1V 0A6
Canada

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal, Quebec H3C 3J7
Canada

University of Lille II - European Center for Corporate Control Studies ( email )

2 rue de Mulhouse
BP381
Lille, 59800
France

Jean-Francois L'Her

Canada Pension Plan Investment Board ( email )

One Queen Street East
Suite 2600
Toronto, Ontario M5C 2W5
Canada

Caisse de Depot et Placement du Quebec (CDPQ) ( email )

1000, place Jean-Paul-Riopelle
Montreal, Quebec H2Z 2B3
Canada

Jean-Marc Suret

Laval University ( email )

Accounting School
Quebec, P.Q. G1K 7P4
Canada
418-656-7134 (Phone)
418-656-7746 (Fax)

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

1130 rue Sherbrooke Ouest
Bureau 1400
Montreal, Quebec H3A 2M8
Canada

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