Do International Cross-Listings Still Matter?
George Andrew Karolyi
Cornell University - Johnson Graduate School of Management
Smith School of Business, Queen's University
Johnson School Research Paper Series No. 32-2010
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.
Number of Pages in PDF File: 43
Date posted: July 29, 2010