Do multiple foreign listings create value for firms?
Abstract
In this paper, we study whether firms benefit from listing in multiple foreign markets. Employing a global sample of multiple-listed firms, we compare Tobin's q for firms cross-listed in one versus two or more markets. Our univariate analysis does not find a cross-listing premium; however, firms that are from/cross-list in certain markets do receive higher valuations. A multivariate analysis shows a multiple-listing effect that is robust to controlling for firm and country-level characteristics as well as self-selection bias. Furthermore, we find strong support for the market segmentation and bonding hypotheses, and weak support for the liquidity hypothesis.
Publication Title
Quarterly Review of Economics and Finance
Recommended Citation
You, L., Payne, J., & Lin, S. (2018). Do multiple foreign listings create value for firms?. Quarterly Review of Economics and Finance, 69, 134-143. https://doi.org/10.1016/j.qref.2017.12.006
