|Reference : International Cross-Listing of Firms on Major Stock Markets: A survey of the Literature|
|E-prints/Working papers : First made available on ORBi|
|Business & economic sciences : Finance|
|International Cross-Listing of Firms on Major Stock Markets: A survey of the Literature|
|Mouchette, Xavier [Université de Liège - ULg > HEC-Ecole de gestion de l'ULg : UER > UER Finance et Droit >]|
|[en] cross-listing ; nternational ﬁnancial markets ; financial segmentation ; asset pricing ; investor recognition ; bonding ; ADR ; GDR|
|[en] This contribution is aimed at presenting the large research produced in this particular ﬁeld of international ﬁnance that constitute cross-listing —the secondary listing of company’s shares on an overseas exchange. For companies, exchanges and investors, the phenomenon of cross-listing raises diﬀerent non-trivial questions. This paper reviews the most important research initiatives addressing the economic eﬀects of this important corporate decision.
Early studies were drawing much of their argumentation from segmentation theory, concluding that cross-listing was a way for companies to lower barriers to international investment in their stocks, leading to a revaluation of their shares. Equally crucial as segmentation was in the early course of the cross-listing activity, new initiatives are now exploring many additional ways that help to get a better picture of the rationales underpinning the far-reaching eﬀects of cross-listing: valuation impacts and other ﬁnancial beneﬁts, change in the company’s market proﬁle, and interaction with her home and host markets.
Cross-listing is then at a cross-roads of diﬀerent theories. The advances in academic contributions over the last decade have helped to understand some of the underlying dynamics and rationales surrounding it, but are also leaving some unanswered questions.
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