Long-Run Performance Following Cross-Listing: A Re-Examination
37 Pages Posted: 4 Dec 2007 Last revised: 20 May 2010
Date Written: April 14, 2009
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: Suggested Citation