The Long- and Short-Run Financial Impacts of Cross Listing on Australian Firms

Posted: 19 Apr 2013

See all articles by Robert W. Faff

Robert W. Faff

University of Queensland

Hue Hwa Au Yong

Monash University - Department of Banking and Finance; Financial Research Network (FIRN)

Date Written: April 13, 2012

Abstract

This paper investigates the short-run and long-run performance of Australian cross-listed firms relative to their industry rivals. The role of share trading liquidity and firm visibility in explaining abnormal returns is also investigated. In the short run, an abnormal return of 1.91% for cross-listed firms is found at announcement, while no significant abnormal returns is found for rivals on the event day. For the long-run analysis, only rival firms (especially for rivals of the non-market leaders) experience significant abnormal returns, which are negative. Cross listing into NEW ZEALAND and other countries induces a more negative impact on rivals than the UK. Lastly, liquidity is found to be a determinant of the short- and long-run abnormal returns.

Keywords: Australian firms, cross listing, financial performance, internalisation, rivals

Suggested Citation

Faff, Robert W. and Au Yong, Hue Hwa, The Long- and Short-Run Financial Impacts of Cross Listing on Australian Firms (April 13, 2012). Australian Journal of Management, Vol. 38, No. 1, 2013. Available at SSRN: https://ssrn.com/abstract=2253364

Robert W. Faff (Contact Author)

University of Queensland ( email )

St Lucia
Brisbane, Queensland 4072
Australia

Hue Hwa Au Yong

Monash University - Department of Banking and Finance ( email )

PO Box 197
Caulfield East, Victoria 3145
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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