Investor Recognition and Information-Signaling Effects of Cross-Border Stock Listings

Posted: 20 Aug 2001

See all articles by Ann Marie Whyte

Ann Marie Whyte

University of Central Florida

Bruce M. Bradford

Fairfield University

Anna D. Martin

Fairfield University - Charles F. Dolan School of Business

Abstract

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

Whyte, Ann Marie and Bradford, Bruce M. and Martin, Anna D., Investor Recognition and Information-Signaling Effects of Cross-Border Stock Listings. Available at SSRN: https://ssrn.com/abstract=270803

Ann Marie Whyte (Contact Author)

University of Central Florida ( email )

4000 Central Florida Blvd
Orlando, FL 32816-1400
United States

Bruce M. Bradford

Fairfield University

Fairfield, CT 06430
United States

Anna D. Martin

Fairfield University - Charles F. Dolan School of Business ( email )

Dolan School of Business
N. Benson Road
Fairfield, CT 06824
United States
203-254-4000 Ext. 2881 (Phone)
203-254-4105 (Fax)

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