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Does corporate control determine the cross-listing location?

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  • Abdallah, Wissam
  • Goergen, Marc

Abstract

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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  • Abdallah, Wissam & Goergen, Marc, 2008. "Does corporate control determine the cross-listing location?," Journal of Corporate Finance, Elsevier, vol. 14(3), pages 183-199, June.
    • Handle: RePEc:eee:corfin:v:14:y:2008:i:3:p:183-199
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    13. Shoham, Amir & Lee, Sang Mook & Khan, Zaheer & Tarba, Shlomo Y. & Ahammad, Mohammad Faisal, 2020. "The effect of board gender diversity on cross-listing," Journal of Corporate Finance, Elsevier, vol. 65(C).
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