International Cross-Listing and Shareholders' Wealth

38 Pages Posted: 19 Jun 2015

See all articles by Olga Dodd

Olga Dodd

Auckland University of Technology

Christodoulos Louca

Cyprus University of Technology

Date Written: June 17, 2015


This study evaluates the relationship between international cross-listings and shareholders' wealth across different host markets and across time. For a sample of cross-listings by European companies in the US, in the UK, and within Europe, the findings show that US and UK cross-listings, on average, result in positive cumulative abnormal returns around the announcement of cross-listing. No such evidence exists for the rest of European cross-listings. In addition, the Sarbanes-Oxley Act (SOX) of 2002 affects negatively the wealth benefits of US cross-listings, while wealth creation around UK cross-listings is primarily concentrated in Alternative Investment Market listings rather than Main Market listings. There is no evidence that the introduction of the Euro affects the wealth effects of cross-listings within the Eurozone.

Keywords: Cross-listing; shareholders' wealth; Euro; AIM; the Sarbanes-Oxley Act

JEL Classification: G15, G14, G32

Suggested Citation

Dodd, Olga and Louca, Christodoulos, International Cross-Listing and Shareholders' Wealth (June 17, 2015). Multinational Finance Journal, Vol. 16, No. 1/2, p. 49-86, 2012, Available at SSRN:

Olga Dodd (Contact Author)

Auckland University of Technology ( email )

Auckland, 1142
New Zealand
+6499219999 ext 5423 (Phone)

Christodoulos Louca

Cyprus University of Technology ( email )

Limassol, 3603

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