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Liquidity minimization and cross-listing choice: Evidence based on Canadian shares cross-listed on U.S. venues

  • Kryzanowski, Lawrence
  • Lazrak, Skander
Registered author(s):

    This paper examines whether a Canadian-listed firm seeking to cross-list in the U.S. needs to consider liquidity differences when making a choice among the main U.S. venues (AMEX, NYSE or NASDAQ). After controlling for firm characteristics, we find that trade costs for Canadian shares cross-listed in the U.S. do not depend on the U.S. cross-listing venue. This suggests that the choice of U.S. listing venue may be better motivated by the desire to minimize listing fees or to increase investor recognition and visibility.

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    File URL: http://www.sciencedirect.com/science/article/B6VGT-4T8SM1P-1/2/d615db72cdba053ba32b02a4bd7ec6d1
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    Article provided by Elsevier in its journal Journal of International Financial Markets, Institutions and Money.

    Volume (Year): 19 (2009)
    Issue (Month): 3 (July)
    Pages: 550-564

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    Handle: RePEc:eee:intfin:v:19:y:2009:i:3:p:550-564
    Contact details of provider: Web page: http://www.elsevier.com/locate/intfin

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