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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/pii/S0929-1199(08)00021-7
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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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