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The Geography of Equity Listing: Why Do Companies List Abroad?

  • Marco Pagano

    (CSEF, the University of Salerno, and CEPR,)

  • Ailsa A. Röell

    (Princeton University and CEPR,)

  • Josef Zechner

    (University of Vienna and CEPR)

This paper documents aggregate trends in the foreign listings of companies, and analyzes their distinctive prelisting characteristics and postlisting performance. In 1986-1997, many European companies listed abroad, mainly on U.S. exchanges, while the number of U.S. companies listed in Europe decreased. European companies that cross-list tend to be large and recently privatized firms, and expand their foreign sales after listing abroad. They differ sharply depending on where they cross-list: The U.S. exchanges attract high-tech and export-oriented companies that expand rapidly without significant leveraging. Companies cross-listing within Europe do not grow unusually fast, and increase their leverage after cross-listing. Copyright The American Finance Association 2002.

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Article provided by American Finance Association in its journal The Journal of Finance.

Volume (Year): 57 (2002)
Issue (Month): 6 (December)
Pages: 2651-2694

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Handle: RePEc:bla:jfinan:v:57:y:2002:i:6:p:2651-2694
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