Cross-Country Competitive Effects of Cross-Listings

61 Pages Posted: 26 Nov 2012 Last revised: 25 Apr 2016

Sergei Sarkissian

McGill University; Yerevan State University

Yan Wang

McMaster University

Date Written: April 5, 2016


This paper studies cross-country competitive effects of foreign listings on U.S. exchanges. It shows that foreign firms by listing on or delisting from U.S. exchanges affect U.S. companies. The incumbent U.S. firms respond strongly negatively to foreign listings and weakly positively to foreign delistings. The returns and operating performance of U.S. rivals deteriorate after the listings of foreign competitors, consistent with the competitive advantages of foreign listings. This impact differs across various market, industry, and U.S. and foreign firm characteristics. These findings highlight an important role of international markets in influencing the dynamics and corporate decision making of U.S. firms.

Keywords: Firm competition, Difference-in-difference, Firm valuation, Operating performance, Product markets

JEL Classification: G14, G15, G32

Suggested Citation

Sarkissian, Sergei and Wang, Yan, Cross-Country Competitive Effects of Cross-Listings (April 5, 2016). Available at SSRN: or

Sergei Sarkissian

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
514-398-4876 (Phone)
514-398-3876 (Fax)

Yerevan State University

1 Alex Manoogian Street
Yerevan, 0025

Yan Wang (Contact Author)

McMaster University ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4

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