70 Pages Posted: 22 Aug 2008 Last revised: 5 Jun 2017
Date Written: May 1, 2014
Using a 57-year global foreign listing sample, we identify cross-listing waves at the host market, home market, and industry levels. Waves in host markets are often due to cross-listing waves in proximate home markets. Consistent with gravity model implications and economic synergy arguments of cross-listing decisions, cross-listing waves in a given host country coincide with the outperformance of host and proximate home country’s economies and financial markets. The valuation gains from listings associated with cross-listing waves are transitory, supporting the market timing component in these decisions. Our results provide novel evidence of non-monotonic market development across countries and over time.
Keywords: Firm valuation; Market competitiveness; Stock exchanges; Trade flows
JEL Classification: F3, F4, G15, G32
Suggested Citation: Suggested Citation
Sarkissian, Sergei and Schill, Michael J., Cross-Listing Waves (May 1, 2014). Journal of Financial and Quantitative Analysis, 2016, 51(1), 259-306.. Available at SSRN: https://ssrn.com/abstract=1244042 or http://dx.doi.org/10.2139/ssrn.1244042
By Olga Dodd