Cross-Country Competitive Effects of Cross-Listings

Review of Corporate Finance Studies, 2020, 9(1), 116-164.

71 Pages Posted: 26 Nov 2012 Last revised: 24 Mar 2020

See all articles by Sergei Sarkissian

Sergei Sarkissian

McGill University; University of Edinburgh

Yan Wang

McMaster University

Date Written: April 5, 2016


We study competitive effects of foreign listings on U.S. stock exchanges over a 50-year period and show that U.S. rival firms respond strongly negatively (weakly positively) to foreign listings (delistings). The performance decline of U.S. firms is related to the competitive advantages that foreign firms receive from their cross-listings, such as stronger financial benefits, higher growth prospects, and better visibility, rather than market or industry valuation timing or existing market competition. This decline is especially pronounced when cross-listings come from proximate or developed markets. Our findings highlight an important role of international markets in influencing the performance of U.S. firms.

Keywords: Abnormal returns; Asset ratio; EBIT; Market share; Product markets

JEL Classification: D22; F30; G14; G15; G32; M41

Suggested Citation

Sarkissian, Sergei and Wang, Yan, Cross-Country Competitive Effects of Cross-Listings (April 5, 2016). Review of Corporate Finance Studies, 2020, 9(1), 116-164., 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)


University of Edinburgh

29 Buccleuch Pl.
Edinburgh, Scotland EH8 9JS
United Kingdom

Yan Wang (Contact Author)

McMaster University ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4

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