Do Political Institutions Affect the Choice of the U.S. Cross-Listing Venue?

44 Pages Posted: 15 Feb 2012 Last revised: 8 Feb 2016

See all articles by Jean-Claude Cosset

Jean-Claude Cosset

HEC Montreal

Charles Martineau

University of Toronto - Rotman School of Management and UTSC Management

Anis Samet

American University of Sharjah - School of Business and Management

Date Written: May 2, 2012

Abstract

We study the impact of political institutions on foreign firms’ choice of their U.S. cross-listing venue. Using two measures of political institutions (an index of political rights and a political constraint index) and controlling for various firm-level and country-level characteristics, we show that foreign firms from countries with weak political institutions are more likely to cross-list in the U.S. via the over-the-counter market and less likely to opt for an exchange-listed program (i.e., New York, Nasdaq, and AMEX).

Keywords: Cross-listing, political institutions, legal institutions

JEL Classification: G15, G32, G34, G38, P48

Suggested Citation

Cosset, Jean-Claude and Martineau, Charles and Samet, Anis, Do Political Institutions Affect the Choice of the U.S. Cross-Listing Venue? (May 2, 2012). Journal of Multinational Financial Management, Vol. 27, 2014. Available at SSRN: https://ssrn.com/abstract=2005213 or http://dx.doi.org/10.2139/ssrn.2005213

Jean-Claude Cosset (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H3T 2A7
Canada
514-340-6872 (Phone)
514-340-6987 (Fax)

Charles Martineau

University of Toronto - Rotman School of Management and UTSC Management ( email )

105 St-George
Toronto, Ontario M5S3E6
Canada

HOME PAGE: http://charlesmartineau.com

Anis Samet

American University of Sharjah - School of Business and Management ( email )

P.O. Box 26666
Sharjah
United Arab Emirates

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