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Does corporate control determine the cross-listing location?

  • Abdallah, Wissam
  • Goergen, Marc

This paper explains the choice of the cross-listing location with particular emphasis on the level of investor protection provided by the host market. We find that firms with concentrated control, with a higher level of risk and those with more pronounced financing needs cross-list on a market with better investor protection. We also find support for the bonding hypothesis as firms from markets with weak shareholder protection tend to cross-list on markets with significantly higher shareholder protection.

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File URL: http://www.sciencedirect.com/science/article/B6VFK-4S6P1YH-2/1/9a185f4acc40fcfcb47a892b4d94b70c
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Article provided by Elsevier in its journal Journal of Corporate Finance.

Volume (Year): 14 (2008)
Issue (Month): 3 (June)
Pages: 183-199

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Handle: RePEc:eee:corfin:v:14:y:2008:i:3:p:183-199
Contact details of provider: Web page: http://www.elsevier.com/locate/jcorpfin

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  1. Nobuyoshi Yamori & Taija Baba, 1999. "Japanese management views on overseas exchange listings: survey results," Pacific Basin Working Paper Series 99-05, Federal Reserve Bank of San Francisco.
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  10. Marco Becht, 2001. "Beneficial ownership in the United States," ULB Institutional Repository 2013/13336, ULB -- Universite Libre de Bruxelles.
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  27. repec:ner:tilbur:urn:nbn:nl:ui:12-86729 is not listed on IDEAS
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