Corporate Governance, International Cross Listing and Home Bias

45 Pages Posted: 30 Sep 2003

See all articles by Michael R. King

Michael R. King

Gustavson School Of Business

Dan Segal

Interdisciplinary Center (IDC) Herzliyah

Multiple version iconThere are 2 versions of this paper

Date Written: March 19, 2003


The equity of Canadian-listed firms trades at a discount to U.S.-listed firms. This discount may be due to weaker corporate governance in Canada relative to the United States. Canadian firms may mitigate this discount by cross listing on a U.S. stock exchange. Results show that Canadian firms cross listed on a U.S. exchange achieve a higher valuation than firms listed exclusively in Canada, after controlling for factors known to affect valuation. Canadian firms that are predominantly traded in the U.S. receive similar valuations to other U.S.-listed firms, while cross listed Canadian firms with little U.S. turnover continue to trade at a discount.

Keywords: equity, corporate governance, international cross listing, home bias, share turnover, valuation

JEL Classification: G12, G15

Suggested Citation

King, Michael Robert and Segal, Dan, Corporate Governance, International Cross Listing and Home Bias (March 19, 2003). Available at SSRN:

Michael Robert King (Contact Author)

Gustavson School Of Business ( email )

University of Victoria
Business & Economics Building, Room 246
Victoria, British Columbia V8W 2Y2
250-721-6425 (Phone)

HOME PAGE: http://

Dan Segal

Interdisciplinary Center (IDC) Herzliyah ( email )

P.O. Box 167
Herzliya, 46150

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