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Competition among stock exchanges for equity

  • Amira, Khaled
  • Muzere, Mark L.
Registered author(s):

    We consider cross-border competition by stock exchanges for listings from firms that have controlling shareholders who have private benefits. We examine exchanges' choices of their listing standards and firms' choices of the exchanges where they cross-list their shares. We show that the share price compensates controlling shareholders for giving up some private benefits and enables firms with growth opportunities to obtain listings on exchanges with different listing standards. In particular, firms with high-growth opportunities tend to obtain listings on stock exchanges with high listing standards. We empirically examine these predictions and find that they are consistent with evidence.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0378426611000550
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    Article provided by Elsevier in its journal Journal of Banking & Finance.

    Volume (Year): 35 (2011)
    Issue (Month): 9 (September)
    Pages: 2355-2373

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    Handle: RePEc:eee:jbfina:v:35:y:2011:i:9:p:2355-2373
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