Cross-Listings and M&A Activity: Transatlantic Evidence
29 Pages Posted: 23 Feb 2002
Date Written: February 13, 2002
Evidence from 196 European firms cross-listed in the U.S. shows that cross-listed firms are significantly more active than matching pair firms in U.S. acquisitions. Cross-listed firms are also somewhat more likely to use equity payment, particularly in the year of cross-listing. The act of cross-listing, however, does not in itself increase the likelihood of U.S. acquisitions for any given company: rather, cross-listed firms are likely acquirers both after and before the cross-listing. After cross-listing, however, the proportion of aggregate M&A volume financed with equity increases, as cross-listed shares are used to finance large acquisitions.
Keywords: Cross-listings, mergers and acquisitions
JEL Classification: G32, G34
Suggested Citation: Suggested Citation