Do Political Institutions Affect the Choice of the U.S. Cross-Listing Venue?
44 Pages Posted: 15 Feb 2012 Last revised: 8 Feb 2016
Date Written: May 2, 2012
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: Suggested Citation