Determinants of Involuntary Cross-Listing: U.S. Restaurant Companies’ Perspective

International Journal of Contemporary Hospitality Management, Vol. 25 No. 7, 2013

Posted: 26 Apr 2014

See all articles by Yoon Koh

Yoon Koh

University of Houston - Conrad N. Hilton College of Hotel and Restaurant Management

Seoki Lee

Independent

Sudipta Basu

Temple University - Department of Accounting

Wes Roehl

Temple University - School of Tourism and Hospitality Management

Date Written: December 1, 2013

Abstract

This paper uncovers the phenomenon of involuntary CL, which many stock exchanges have strategically adopted by simplifying listing requirements for companies already listed in other stock markets, focusing on US restaurant companies. The number of involuntarily cross-listed US restaurant companies greatly increased to 50 percent of domestically listed US restaurant companies while those companies are largely unaware of the phenomenon. The empirical investigation identified determinants of involuntary CL by examining ten factors, including size, firm growth opportunities, leverage, financial flexibility, international operation, profitability, overall German economic condition, industry growth opportunities, restaurant type, and local operation. The study found three determinants – large size, favorable economic condition in Germany and positive industry growth opportunities – utilizing the sample that covers the entire periods of involuntary CL of US restaurant companies on the FSE.

Keywords: Involuntary cross-listing, Cross-listing, Determinants, Frankfurt Stock Exchange, Restaurants, Stocks, Stock exchanges

Suggested Citation

Koh, Yoon and Lee, Seoki and Basu, Sudipta and Roehl, Wes, Determinants of Involuntary Cross-Listing: U.S. Restaurant Companies’ Perspective (December 1, 2013). International Journal of Contemporary Hospitality Management, Vol. 25 No. 7, 2013. Available at SSRN: https://ssrn.com/abstract=2429063

Yoon Koh (Contact Author)

University of Houston - Conrad N. Hilton College of Hotel and Restaurant Management ( email )


United States
(713) 743-2655 (Phone)
(713) 743-3696 (Fax)

Seoki Lee

Independent ( email )

Sudipta Basu

Temple University - Department of Accounting ( email )

Philadelphia, PA 19122
United States
215.204.0489 (Phone)
215.204.5587 (Fax)

Wes Roehl

Temple University - School of Tourism and Hospitality Management ( email )

Philadelphia, PA 19122
United States

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