An Empirical Analysis of Cross-Listing Decisions in Share-Issue Privatizations: Evidence from Developed and Developing Countries

34 Pages Posted: 23 Aug 2010

See all articles by Robert C. Nash

Robert C. Nash

Wake Forest University

Juliet D'Souza

Georgia Gwinnett College

William L. Megginson

University of Oklahoma

Multiple version iconThere are 2 versions of this paper

Date Written: August 22, 2010

Abstract

Frequently the largest equity offerings in the world, share-issue privatizations (SIPs) are sometimes conducted entirely on domestic exchanges and are sometimes cross-listed on foreign exchanges. In this paper, we examine the determinants of a privatizing government’s actions regarding whether and where to cross-list. Using data from 821 SIPs from 76 countries during 1985-2007, we identify firm-level and institution-level factors that affect the cross-listing decisions in these equity offerings. The data indicate that offering size, industry, and product market are the firm-level characteristics most closely related to the cross-listing decisions. We also find that institution-level factors (such as the country’s level of economic development and capital market development) significantly impact the likelihood of cross-listings in share-issue privatizations. We further identify that the factors affecting cross-listing decisions vary significantly between developed and developing nations.

Keywords: Cross-listing, Privatization, ADR

JEL Classification: G15, G32, G38, L33

Suggested Citation

Nash, Robert C. and D'Souza, Juliet and Megginson, William L., An Empirical Analysis of Cross-Listing Decisions in Share-Issue Privatizations: Evidence from Developed and Developing Countries (August 22, 2010). Available at SSRN: https://ssrn.com/abstract=1663434 or http://dx.doi.org/10.2139/ssrn.1663434

Robert C. Nash (Contact Author)

Wake Forest University ( email )

2601 Wake Forest Road
Winston-Salem, NC 27109
United States

Juliet D'Souza

Georgia Gwinnett College ( email )

1000 University Center Lane
Lawrenceville, GA 30043
United States

William L. Megginson

University of Oklahoma ( email )

307 W Brooks, 205A Adams Hall
Norman, OK 73019
United States
(405) 325-2058 (Phone)
(405) 325-1957 (Fax)

HOME PAGE: http://faculty-staff.ou.edu/M/William.L.Megginson-

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