Cross-listing and Firm Growth
AbstractExtant research posits that cross-listing improves firms' access to lower cost external financing. But so far, there is scarce evidence that improved access to external funds through cross-listing contributes to higher firm growth. Documenting the relation between firm growth and cross-listing is critical because the presumption in prior research is that funds raised via cross-listing will be channeled towards potentially profitable projects. Using a sample of firms from thirty-seven countries that are cross-listed in the USA, we find a positive association between cross-listing and subsequent externally financed firm growth rates. However, we do not find that increases in externally financed firm growth after cross-listing vary systematically as a function of the home-country attributes of the cross-listed firms. Overall, our results provide new and direct evidence on the impact of cross-listing on the firm growth rates. Copyright 2008, Oxford University Press.
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Bibliographic InfoArticle provided by European Finance Association in its journal Review of Finance.
Volume (Year): 12 (2008)
Issue (Month): 2 ()
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