Cross-listing premium in the US and the UK destination

This paper tests the main hypothesis that firms that cross-list have higher valuations, and provides evidence on the valuation effect of cross-listing on a major non-US market, the UK compared to the US market from source countries in the Asia-Pacific region in 2003–2004. We find evidence that there...

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Bibliographic Details
Published in:International review of economics & finance 2010-04, Vol.19 (2), p.244-259
Main Authors: Bianconi, Marcelo, Tan, Liang
Format: Article
Language:English
Subjects:
Cross-listing premium
Cross-listing premium Treatment effects Location
International comparisons
Location
Mathematical models
Securities markets
Studies
Treatment effects
Valuation
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Summary:This paper tests the main hypothesis that firms that cross-list have higher valuations, and provides evidence on the valuation effect of cross-listing on a major non-US market, the UK compared to the US market from source countries in the Asia-Pacific region in 2003–2004. We find evidence that there is a cross-listing premium in both markets. However, the evidence on whether the premium is significantly different in the two countries is mixed. Using univariate, OLS and random effects methods, we find some evidence that the premium in the US is higher, but using a treatment effect methodology we find that the difference is not robust.
ISSN:1059-0560
1873-8036
DOI:10.1016/j.iref.2009.09.004