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Long-run Performance Following Cross-Listing: A Re-examination

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  • Cécile Carpentier

    ()

  • Jean-François L'Her
  • Jean-Marc Suret

    ()

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    Abstract

    We analyze the long-run performance of the population of Canadian firms that cross-list in the US between 1990 and 2005, paying particular attention to cross-delisting companies. We ask why, since numerous firms cross-list to get the advantages associated with cross-listing, these firms' long-run performance is purportedly abnormally poor. Using robust empirical methods, we find no evidence of a significant underperformance by Canadian firms after cross-listing. Rather, we find that the previously documented underperformance following cross-listing can be traced to a combination of the choice of method, sample selection, and survival biases. This is an up-date version of the working paper published on November 2007 under the same reference. Selon les études antérieures, le rendement à long terme des titres qui s’inscrivent aux États-Unis (qui s’interlistent) est anormalement faible. Nous réexaminons ces résultats, qu’il est difficile de concilier avec les avantages procurés par cette opération et qui ne permettent pas d’expliquer le grand nombre d’interlistages observés récemment. Nous étudions la population des sociétés ouvertes canadiennes qui se sont inscrites aux États-Unis entre 1990 et 2005, en utilisant différentes méthodologies et indices. Une attention particulière est également portée aux désincriptions. En utilisant des méthodologies robustes, nous n’observons aucune performance anormale suite à l’interlistage des sociétés canadiennes. Nos résultats indiquent que les résultats antérieurs de sous performance à long terme pourraient provenir d’une combinaison de choix méthodologique et de biais de sélection et de survie. Ce document est une mise à jour de celui-ci publié en novembre 2007 sous le même numéro.

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    Bibliographic Info

    Paper provided by CIRANO in its series CIRANO Working Papers with number 2007s-25.

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    Date of creation: 01 Apr 2009
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    Handle: RePEc:cir:cirwor:2007s-25

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    Keywords: international cross-listing; abnormal performance; event-time methods; calendar-time methods; international asset pricing mode; interlistage international; performance anormale; méthodes en temps évènementiel; méthodes en temps calendaire; modèle d’évaluation des actifs international;

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