Investor Communication and the Benefits of Cross-Listing

70 Pages Posted: 26 Oct 2020

See all articles by Nayana Reiter

Nayana Reiter

University of Toronto - Rotman School of Management

Date Written: September 5, 2020


While studies have sought to explain the benefits of cross-listing, little attention has been paid to the role of communication between managers and investors during this process. In this paper, I investigate whether managers change communication policies around U.S. cross-listings. I document significant increases in communication when firms cross-list. I then test whether these investor communication practices around cross-listing are associated with capital market benefits. I find that cross-listed firms that communicate more with investors experience greater and longer lasting cross-listing benefits. Lastly, I explore two potential reasons that may lead managers to choose higher levels of communication: to support an increase in investor recognition and to facilitate monitoring. I find results consistent with communication increasing visibility and scrutiny, suggesting that communication functions as a supporting tool to achieve managers’ cross-listing goals.

Keywords: cross-listing; investor communication; corporate disclosure; valuation premium

JEL Classification: G12, G14, G15, M41

Suggested Citation

Reiter, Nayana, Investor Communication and the Benefits of Cross-Listing (September 5, 2020). Journal of Accounting & Economics (JAE), Forthcoming, Available at SSRN: or

Nayana Reiter (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4

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