Title

Cross-listing premium or market timing

Document Type

Article

Publication Date

1-1-2017

Abstract

Cross listing literature presented various reasons for why companies cross list among those are liquidity, investor recognition, and lower cost of capital. This paper builds on the literature of cross-listing and shows that some companies cross list during a bull market and others cross list in a bear market. The results show that companies who time the market and cross list during market expansion, experience significantly negative abnormal returns in the post-listing period. The results also show that companies who don't time the market, experience either significant positive abnormal returns or insignificant negative abnormal returns in the post-listing period. Home country factors affect the magnitude of abnormal returns in both the pre-listing and the post-listing period regardless of the reason for cross-listing.

Publication Name

Banking and Finance Review

Volume Number

9

First Page

124

Last Page

126

Issue Number

2

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