Do International Cross-Listings Still Matter?

EVIDENCE ON FINANCIAL GLOBALIZATION AND CRISES, Thorsten Beck, Sergio Schmukler, Stijn Claessens, eds., Elsevier North-Holland Publishers, 2010

42 Pages Posted: 11 Jul 2010 Last revised: 28 Jul 2010

See all articles by Louis Gagnon

Louis Gagnon

Queen's University - Smith School of Business

George Andrew Karolyi

Cornell University - SC Johnson College of Business

Multiple version iconThere are 2 versions of this paper

Date Written: May 28, 2010

Abstract

With the rapid globalization of financial markets during the 1980s and 1990s, increasingly more firms from around the world began cross-listing their shares on major overseas stock exchanges. During the past decade, however, the number of new international cross-listings on major exchanges around the world has slowed, yet the globalization process has continued to advance. This article asks whether international cross-listings still matter for global capital markets and answers this question by critically reviewing the most recent research on international cross-listings that focuses on multi-market trading, liquidity, and arbitrage. We conclude that cross-listings continue to be vibrant influencing price discovery, trading, and capital-raising for many companies around the world and thus still represent an important force for the integration of global financial markets.

Keywords: Multi-market trading, Idiosyncratic risk, limits to arbitrage, Information, Volume, Comovements, Spillovers, International finance

JEL Classification: F30, G15, G32

Suggested Citation

Gagnon, Louis Joseph and Karolyi, George Andrew, Do International Cross-Listings Still Matter? (May 28, 2010). EVIDENCE ON FINANCIAL GLOBALIZATION AND CRISES, Thorsten Beck, Sergio Schmukler, Stijn Claessens, eds., Elsevier North-Holland Publishers, 2010, Available at SSRN: https://ssrn.com/abstract=1638197

Louis Joseph Gagnon (Contact Author)

Queen's University - Smith School of Business ( email )

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George Andrew Karolyi

Cornell University - SC Johnson College of Business ( email )

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6142820229 (Phone)

HOME PAGE: http://https://www.johnson.cornell.edu/faculty-research/faculty/gak56/

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