Cross-Listings and M&A Activity: Transatlantic Evidence

29 Pages Posted: 23 Feb 2002

See all articles by Pasi Tolmunen

Pasi Tolmunen

Tulane University, Department of Economics

Sami Torstila

Aalto University

Multiple version iconThere are 2 versions of this paper

Date Written: February 13, 2002

Abstract

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

Tolmunen, Pasi and Torstila, Sami, Cross-Listings and M&A Activity: Transatlantic Evidence (February 13, 2002). EFA 2002 Berlin Meetings Presented Paper. Available at SSRN: https://ssrn.com/abstract=300799 or http://dx.doi.org/10.2139/ssrn.300799

Pasi Tolmunen

Tulane University, Department of Economics ( email )

New Orleans, LA 70118
United States

Sami Torstila (Contact Author)

Aalto University ( email )

P.O. Box 21210
Helsinki, 00101
Finland
+358 40 353 8069 (Phone)

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