Cross-Listing Waves

Using a 57-year global foreign listing sample, we identify cross-listing waves at the host market, home market, and industry levels. Waves in host markets are often due to cross-listing waves in proximate home markets. Consistent with gravity-model implications and economic-synergy arguments of cros...

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Bibliographic Details
Published in:Journal of financial and quantitative analysis 2016-02, Vol.51 (1), p.259-306
Main Authors: Sarkissian, Sergei, Schill, Michael J.
Format: Article
Language:English
Subjects:
Cross border transactions
Gravity
Markets
Securities markets
Valuation
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Summary:Using a 57-year global foreign listing sample, we identify cross-listing waves at the host market, home market, and industry levels. Waves in host markets are often due to cross-listing waves in proximate home markets. Consistent with gravity-model implications and economic-synergy arguments of cross-listing decisions, cross-listing waves in a given host country coincide with the outperformance of the host and proximate home countries’ economies and financial markets. The valuation gains from listings associated with cross-listing waves are transitory, supporting the market-timing component in these decisions. Our results provide novel evidence of nonmonotonic market development across countries and over time.
ISSN:0022-1090
1756-6916
DOI:10.1017/S0022109016000016