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What Makes Stock Exchanges Succeed? Evidence from Cross-Listing Decisions

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  • Pagano, Marco
  • Röell, Ailsa
  • Zechner, Josef
  • Randl, Otto

Abstract

Despite the increasing integration of capital markets, geography has not yet become irrelevant to finance. Between 1986 and 1997, European public companies have increasingly listed abroad, especially in the US. We relate the cross-listing decisions to the characteristics of the destination exchanges (and countries) relative to those of the home exchange (and country). European companies appear more likely to cross-list in more liquid and larger markets, and in markets where several companies from their industry are already cross-listed. They are also more likely to cross-list in countries with better investor protection, and more efficient courts and bureaucracy, but not with more stringent accounting standards.

Suggested Citation

  • Pagano, Marco & Röell, Ailsa & Zechner, Josef & Randl, Otto, 2001. "What Makes Stock Exchanges Succeed? Evidence from Cross-Listing Decisions," CEPR Discussion Papers 2683, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2683
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    More about this item

    Keywords

    Cross-listings; Going public; Initial public offerings; Geography; Stock market competition;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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