Are There Permanent Valuation Gains to Overseas Listings?

51 Pages Posted: 2 Aug 2004 Last revised: 10 Oct 2007

See all articles by Sergei Sarkissian

Sergei Sarkissian

McGill University; University of Edinburgh

Michael J. Schill

University of Virginia - Darden School of Business

Date Written: February 15, 2007


This paper tests whether foreign equity listings are associated with permanent valuation gains and examines how market and firm characteristics influence any valuation effects. Using a global sample of 1676 listings placed in 25 countries, we find that much of the valuation gains to overseas listings are not permanent. The transitory nature of valuation gains holds for both average U.S. listings and average first-time firm listings. We find little evidence of a permanent effect on returns for firms that list abroad, even for firms' listings in markets that are more liquid, provide better legal protection, or have a larger shareholder base.

Keywords: Overseas Listing, International Cost of Capital, Cross Listing

JEL Classification: G15, G32

Suggested Citation

Sarkissian, Sergei and Schill, Michael J., Are There Permanent Valuation Gains to Overseas Listings? (February 15, 2007). Darden School of Business Working Paper No. 03-03, Available at SSRN: or

Sergei Sarkissian

McGill University ( email )

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University of Edinburgh

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Michael J. Schill (Contact Author)

University of Virginia - Darden School of Business ( email )

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United States
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