Investor Recognition and Information-Signaling Effects of Cross-Border Stock Listings
Posted: 20 Aug 2001
We examine the effect of 269 cross-border listings on rivals in the listing and domestic markets and find that U.S. rivals experience significant gains whereas domestic rivals do not. Both competitive and information effects are important in explaining the reaction of U.S. rivals. Regarding the competitive effects, the reaction of rivals is less favorable when listings originate in developed countries and more favorable when listing firms do not have prior operating presence in the United States. Regarding the information effects, the reaction is less favorable when listings are combined with equity offerings and more favorable when the listing is the first to occur in a particular industry.
JEL Classification: G14, G15, F30
Suggested Citation: Suggested Citation